Enterprise value just dropped under 800k. (Market cap $1012...

Enterprise value just dropped under 800k. (Market cap $1012 million @ share price $1.245, minus $213.4 million in net cash & gold.)

This, on a company that just reported H1 after-tax profits of $81.3 million, or a $162.6 million yearly rate. Enterprise value under 5X trailing after-tax profits.

On the valuation metric I use, enterprise value/simple cash flow*, which does include the current Aussie spot price, we're at EV/SCF = 2.98, as cheap as Ramelius has been in the six months or so I've been keeping track. This, after H1 hit the ball out of the park.

Don't know whether this is passive index funds blindly selling (e.g., GDXJ, and note SLR is selling down at same rate today), fear of Aussie dollar parity, fear of gold price plunge, or what. But consider RMS is growing production, has Penny with an AISC in the 600s coming online, and has approx half of the next two year's production hedged at an average $2288/oz which is obviously OVER the current spot price. The current price is truly humorous.


*Simple cash flow = yearly production guidance in ounces x (spot price - guidance AISC)