OTCQX:RPMGD - Post by User
Post by
ts9222on Jan 31, 2018 4:15pm
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Post# 27474202
$1.30
$1.30$1.30 and under is real cheap in my opinion. I've been buying during this time. The drop in share price dropped the market cap to $85m. Add the $20m raised and the market cap becomes $105m. That is very cheap for a 70k to 100k oz/yr producer in a safe jurisdiction of USA. As an added bonus, the big drop in tax rate from Trump makes it one of the lowest taxed gold miners in the world. 150k oz/yr when Lincoln Hill is added.
RPM already paid down $5.1m of their debt in Dec., reducing it to $21.8m. They should be operating at break even and above now. Most of that $20m raised can go to paying down the debt. The interest cost will be grreatly reduced to give more free cash, and the debt should be gone soon as they ramp up.
Most of their operation has been above plan.
Mined tons 30% above plan
Crushed 27% above plan
Gold price above $1300, above PEA plan
Strip ratio of 0.55 significantly better than the 1.47 planned
"As a result of internal revisions to Florida Canyon's mining plan and changes to the production sequencing, the Company will be using an average stripping ratio 0.8 as a guide for 2018 and an overall stripping ratio of 1.05 for the life-of-mine schedule."
Can they get a one time gain on their financial statement with this improved mine plan?
The one thing not above plan was the leach cycle time. The gold is still there, but it just takes a little longer to come out.