rms asset backed 65 cents, page-7

Lighthouse very impressive but I know your are wiser than to buy at todays prices. If you use one years earnings to form the company market value thats false economics.

Pe is only used with consistent earnings. RMS dont have anything consistent, thats what makes it speculative.
Even companies with proven resources are speculative to some extent. Look at Bendigo gold.
Thats why earnings over a period of time are important to form a solid valuation, not just one nugget.

I spoke to Maquarie Analysts today, they hate RMS because RMS breaks market rules. RMS gives capital returns before mining, mines gold before establishing a resource, uses third party estimates as guide to a resource.
I dont mind because I entered the stock early.

When a gold company breaks the rules they have to expect to be valued down until they have proven themselves over a period of time and start to work within market guidelines.

Its understandable that RMS chose to mine and not spend money on expensive BFS etc but there is a price to pay.
That price is being valued lower by the market, not being taken seriously by investment banks and extremely volitile.