rms worth : the numbers

Quick look at their worth... :)

Ramelius pulled 160,000 tonne of Ore from the ground at an average of 10.1g/t from March 06 to Oct 06. They also have a processing plant capable of 180,000 tonnes per annum.

They currently have 167 Million Shares fully diluted. They have cash and ore stockpiled and conversion of Options will bring in another $12 Million. No dilution required.

Looking at a PE ratio value.....

They can easily dig out 180,000 tonnes per annum and keep the plant running at capacity.

At 180,000 tpa @ 10g/t, they would process about 63,000 oz gold. They run a cost of less than $200 per ounce leaving a profit of about $600 an ounce. 63000 x $600 = $38 Million per annum.

Given that they have drilled 48m at 154 g/t and 13m at 32 g/t, one could assume they could get the average grade to 30 g/t. (only 1/5 of the 154 g/t).

This could give RMS a profit around the $120 Million p/a. Given a PE of a very low 5, this could give a company value around the $600 Million mark.

A fair market value at the moment could be $3.60 a share.

Currently at $1.38 with 167M shares = market cap of $230M fully diluted.

Looking more positively, with such high grades maybe 50 g/t could be achieved at a cost of only $100 tonne. Also a PE of 10 could be applied as it is open in most directions. This would be more like 100,000 ounces a year with a profit level of $700 per ounce giving a profit of $210 Million a year. With a PE of 10, this could be a $2 Billion company with a share price $12 a share.

So a low SP of $3.60 and a high SP of $12. Comment welcome....