Been posting on a few gold stocks as I completed a good deal of my own mug research the last week or so
I believe the title above is the best description for RMS at present
They are cashed up to the hilt with $95m = 32c a share in the bank
They still have 130k oz's of Gold at Wattle Dam which they should make a very healthy $800-$900/oz on (assuming cash costs are stable at $500/oz and gold prices are stable at aroun $1400/oz) this will add $110m or so to the bank balance = 38c
So you could roughly value them as 32c cash + 38c or so for remaining Wattle Dam Gold
The problem for RMS is growth and they know this hence the tilt they made at Dioro which unfortunately failed
What RMS needs to do and quick is find additional gold at least 500koz's or so to ensure they can extend the prodcution profile
If they cant I feel a predator will snap them up for their cash and asset value (dont forget about the 180ktp.a. Burbanks Mill) AVO would be the most likely suitor IMO
It will be interesting to see what unfolds here
RMS Price at posting:
44.5¢ Sentiment: Buy Disclosure: Not Held
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