Where's The Pullback, page-91

Eshman i know you have been around a long time. I have followed you on lots of different stocks over the years.

But you are talking about Profit for tax purposes and then using that in your P/E calc. I am sure you know this is not what is generally done. The profit for tax purpose has all of the capital expenditure depreciations etc. So this is not a reflection of the operating performance of the company at all. It is merely a number companies use to calculate the tax they have to pay. So if they have spent $200M on capital works they can depreciate this over time and reduce the taxable profit each year.

Generally you would use the EBITDA. So for RMS for the half year that is $50M so $100M for the year. So i would say the P/E ratio today is 5.14. not the 84.5 you calculated.

RMS cash position for the half year has increased by $19M. This is after they spent 23M on development and exploration and 12M on acquisitions.

So they made a $50M profit from operations. Of this they kept $19M as cash. And spent approx 35M on investing back in to the company.

Another way to calculate there P/E would be to look ahead at what they are forecasting.

So approx 200koz of gold @ ASIC of $1200AU. So that should be a operating profit of $110M for the 18/19 year.