is rms overvalued...

Let's have a look at what RMS is currently valued at...

RMS - 98.8m ($1.845)
RMSOA - 38.7m ($1.62)
RMSO - 28.3m ($1.60)

Total market cap = $290m at Friday close.

At end of March Qtr had $5m cash.

They have approx. $25m in profit on stockpile (36,800 ounces at A$812 gold price (US price has come off a little, and AUD has strengthed). Tax possibly still needs to be paid (would need to confirm their carried forward losses).

Total "physical" value is $30m... this leaves $260m for the rest of the company.

Let's pretend that they have 2m ounces of gold equivalent (unlikely?? - at least not for many many years). This would give them a value of $130/ounce of gold equivalent - which sure isn't cheap given the likely time to pull that out of the gold. (If they only have 1m ounces the price goes up to $260/ounce!).

I held RMS (from about 8 months ago), and sold at around $1.40 because I think they are overvalued, and there is much better value elsewhere.

I think the hype has got to RMS price and people are dreaming about the possibilities... but you need to consider if there is better value our there (there is!).

People looking for substantial returns will be better investing elsewhere. What is the chance that RMS is actually worth $580m???? (double today's market cap). I think it is unlikely that it will see $580m any time soon, whereas there are plently of other stocks that will double and triple much more easily.

I only make this post as I think people are getting carried away with things. Sure RMS will probably go higher, but IMHO I think it is a higher risk strategy, and could just as easily settle at a lower price than today.

I am interested in other people's considered thoughts.

Good luck to holders - I hope I am proven wrong.

Cheers
Marvin.