rsn, good ann, undervalued

Pretty good ann, met as usual (like OXR, with a selldown). Although unlike OXR, no country risk.

Breaking it down;
costs at A$350, current sell price A$550 so 35,000oz = $7m free cash flow, or 3.0cps X5 = 15c SP.
They will be in production before the end of 2004, so this must be a MINIMUM valuation by then.

200,000oz is current resource. The step out additional drills are targeting a "significant" increase over the current resource.

Then they have stated for Agate creek, "non JORC" estimate is 300,000oz. The drilling announced should prove this up.

THEN, RSN will have a 500,000 oz resource + whatever "significant" amount they add at Tom's Gully. My bet is a doubling at least for an all up total of 700,000oz resource. This MUST then be valued with a cap of at least $50-60m, or 22-26cps, probably quite a bit more.

Still RISK, until that decision to mine is made & then funding done (not much needed, as Quest 29 plant already operating).

Looking VERY good & I'm happy to have topped up this morning, although I might have got them cheaper now, although no RSNG for sale under $1.80
Long term, no big deal.
I have a trading lot of RSN, bought lowwer down, that I was looking to sell into strength. I think I'll just keep it in the bottom drawer with the rest.

cheers,

ned