aegis research report

For those of you that currently hold RBM you should go to the company website and have a good read of the recent in depth research report.

Some of the more important info is as follows:

-Valuation of 30.6c when using forward copper prices
-Cash flow positive this year
-Sandy Flat resource expected to be 2 to 3 times larger than already announced, not to mention the other breccia pipes yet to be explored
-Mt Kasi could hold several million ounces of gold
-Earnings of 2.8cps in FY08 which puts it a PE of only 5.5 at current share price for next years earnings
-No premium is added for the additional discoveries to come


When you put this all together the current share price of only 15.5c doesn't even value the company at its production value let alone any further copper or gold discoveries.
It may come under a little sp pressure from the short term traders but remember the big picture they are potentially sitting on several billion dollars of copper and gold.
With the positive cashflow from this year the capital structure will be kept tight so when the shortminded sell out after the rights issue it will be a matter of time before the excess is mopped up and the sp will start heading north.
With the next drilling program to be much more detailed than previous ones there will be plenty of news to kept everyone interested heading into the second quarter.
I remember reading around the start of the new year that a couple of brokers had named RBM as one of their Spec of the Year so as soon as we get into the next drilling campaign watchout!!

Remember DYOR