Poly,
I believe they will be rerated in the coming months just like CopperCo (CUO) has been in the last 6 months.
Although CUO has a bigger production profile (should be at rate of 19,000 tonnes a year by later this year) it also has a much bigger market cap (over $350 mill).
To me the CUO comparison is one of the most relevant to RBM.
By Dec 2008 RBM should be at 7,000 tonnes a year and this is without any upgrades or finding the underground orebody (which itself might take 3-5 years to get into production).
CUO's share price has gone from about 35 cents to 90 cents in the last 6 months as they have met each milestone leading into production which is happening for them now.
The real test for RBM is to meet their targets. Stage 2 is about 3,000 tonnes a year to start early next year. If by this time next year they are at this level then the market will not be able ignore/undervalue them anymore.
Once they prove they can mine at their stated target levels, particularly after Stage 3 begins in late 2008 then it should be over 40 cents.
As we have all said previously the underground orebody, providing the grades are still good and economic, could send it towards and even over $1.
Martin Place Securities has been mentioned in the past but I am not aware if they have or are going to prepare a report on RBM. This may give RBM at little kick along and also support the Aegis view.
Looks like finally the wait might be over and better times ahead in the next 6 months.
Flipper
RBM
redbank mines limited
