Killing a bit of time so I thought I would put down some figures that would justify the market valuation of RVR.
Market closed @ 15.5 cps
Cash in hand = 3.4 cps
So the market is valuing the Mining Operation @ 12.1 cps
Using a multiple of 10 for an EPS we need to earn 12.1 cps divided by 10 = 1.2 cps after tax.
multiply by 500,000,000 shares =$6,050,000 after tax profit /year
So with the Qtr about to be announced we need to clear $1,512,000 after tax profit to justify this valuation.
If it was say double this the share valuation should be 12.1 x 2 =24.2+3.4 = 27.5cps.
I guess i'm buying a few more at 15.5cps
I welcome any constructive criticism.and checking of figures. I also know there are a few more contributing factors to a share valuation but I think this is a good base case.
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