Where's The Pullback, page-111

True but that's perhaps looking into the future a bit unless a nice GP rise occurs soon .
I don't know at present but the long term av (roughly) PE of the market in general is about 15 .
If the average was taken for RMS , at the current price seems to me the market is factoring in a profit of $40 mil per year .
If you were to say 12 then that would be about $50 per year .
Quite do-able as soon as they get good feed supply to EM .

At present of course the PE is extremely high but this is common for shares where their history is less than what is expected in the future .
There WERE some write-downs last quarter and the cash was more than the profit and obviously EM mill situation non ideal but the market is looking beyond that .

When you hold a gold producer it's a bit like holding physical gold except they are GEARED to the GP because of margins and the smaller the margin the more they are geared .
If you want to value RMS , partly you also have to put an estimate at expected A$ GP .
I confess to being a bit of a gold bull AND for me gold producers are my chosen exposure to gold rather than physical .
I expect the A$ to stay low and potentially further increases in GP .