another round, page-19

A Screaming BUY IMO....WHY?

EPS of 11.9c / share for a half year. (On track for ~24c for the year without factoring up for TBRs share of that through RND owning 11.9m shares)

Market Cap of 40m (50m shares on issue x $0.80 current share price)

Trading below net assets (63m in Net Assets Shares on Issue 50m) Net Assets per share = $1.26

Take out capitalised exploration expenditure and still trading below Net Assets. 63m 16m = 47m or Net Assets $0.94 / share. Really though the exporation expenditure is probably worth ~5m as TBR can reduce their tax liability by expensing this (16.1m x 30% company tax rate).

No Long Term Debt and short term is only trade payables

Inventories of 19m is mostly Gold in a bullion account (and some Silver and unprocessed Ore thats all been graded and waiting to go to AGR for refining)

TBR own 43.65% of RND and RND owns 23.69% of TBR so really any analysis per share needs to be done on only 45m TBR not the 50m on issue. As 43.65% of the 11.9m RND own can be considered bought back by TBR.

So now Net Assets / Share of $1.40, after taking the intangible exploration expenditure out its $1.04 / share.

Plus TBR is earning ~23.8c / share annually, concentrate that for the TBR owning RND who own TBR you are looking at current annual EPS of 26.5c / share, thats earnings return of 33% at the current share price at $0.80.

88% of TBR is owned by the top 20 shareholders so very tightly held, if she runs she could really run quick.

Amusing that management are making no attempt to advertise the above numbers. Support a market cap several multiples of the current level as been discussed by other wise posters on the TBR threads and I totally agree.

On the horizon we have -
*Rubicon being financed most likely through debt
- All indications are that Rubicon will be debt, if equity or hybrids you woul expect some form of glossy investor presentation.

*Quarterly late April

*Possible takeover of RND (major benefit would be to reduce admin costs for both)

INVENTORY -
19m in inventories (Gold, Silver and Ore). Spot price was ~1223 / oz AUD 31/12/2009, now currently ~1210.

AASB 134 (17) Interim Financial Reporting requires that inventories be adjusted to Net Realisable value. For the ore I assume this translates to Gold $'s after processed less recovery costs.

Agree it would be nice to have this clearly clarified with the oz's and grades etc, but obviously management don't want this to run......yet!