There is not any single fair figure you can put RAU at this time any figure is fair that is because the price that traders are willing to pay at any particular day and it will change everyday depending on what they believe...at this time they don't have any income only projection or plan so any price will be fair even though there is value of the gold that they claim to have underground but at this time no one is willing to pay 25 cents a share so for today late 2cs is the fair price tomorrow it might change. I would prefer to think of what they actually have and based on their report of projection of around 100k 0z per year from bolivia and say 25k from fnq then at a cost say 200 to 400 per oz we can see a profit of say after other cost of 600 bucks per oz and lets take a figure of total production of 100k a year then you have a profit of 60mils a year and today cap is around 30mils hmmm if they make profit of 60mils a year now you have to believe that they will be valued at much much more than 30mils now production of 100ks a year might take three years to get there but the sp will be rerated well before this figure is achieved so maybe we just have to be more patient and most companies are valued between say 12 to 16 times earning so now we have a clearer picture of what RAU will be valued in 12 to 18 mths.
Cheers,
BIG Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
