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Ruby Creek Resources Inc RBYC

Ruby Creek Resources Inc. is engaged in developing a gold property. The Company's project includes the Gold Plateau Project. The Gold Plateau Project consists of property, which has artisanal gold mining activities. The Gold Plateau Project is located in southern Tanzania approximately 150 kilometers north of the Mozambique border. The Gold Plateau Project consists of around 15 properties of prospective gold mineralized territory. The Company has mining and processing equipment onsite and additional processing equipment. The Gold Plateau Project is situated at the eastern margin of the Selous Basin where the Karoo and young sedimentary rock are in fault contact with low to high-grade metamorphosed rocks of Neoproterozoic age belonging to the Mozambique Belt.


GREY:RBYC - Post by User

Post by jongguaon Jun 19, 2012 8:41pm
288 Views
Post# 20032300

new market interest

new market interest

As I have matured in my understanding of this sector, it seems less likely to me that our own individual story will stand out (100M oz!) since production is taking so long to ramp up, and proving out . those hoped for 100M + oz is gonna take many many years of drilling. Of course, if we can finally get some good quarterly climbs toward 100K oz annual produx, our eps should eventually turn heads. No, what I've come to realize is that it has a lot to do with simple money flows into and out of this sector. Right now the money is flowing OUT so that valuations of all gold miners are being simply crushed. Until the market resends new money into gold miners, we're not going anywhere until either news and eps becomes stellar (great eps could happen in later 2013) or big investment money finally turns toward the "new" old "money in the ground". I continue to have a 5-8 year wait on this stock to fully develop its story and wait for a new boom of investment to radically change all valuations. I can wait.

 

BTW, to amuse myself in the meantime, I sometimes play with fun numbers of 500k oz or even 1M oz annual production at, say $5000 or $10,000 oz x 20% cash costs and 34% taxes. At .5 g/m3 I can get eps of $19 before 2020 under these circumstances if we keep dilution to 100M and government's take remains stable. It's the gov'ts tendency to take that is the most potentially dangerous.

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