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Bullboard - Stock Discussion Forum 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... see more

GREY:RBYC - Post Discussion

Ruby Creek Resources Inc > valuation parameters
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Post by jonggua on Feb 16, 2012 7:34pm

valuation parameters

here are some current value parameters: 

reserve oz's in ground pre production, below $100 most of the time

in production, reserve oz's $100-400

hui has been bouncing between 4.5x sales on low end and hi end 6.5x sales

but junior profitable miners have been found by me trading at less than 10x earnings. One, monument mining, is at an incredible 3x eps last I looked. 

What I am expecting is a terrifying scary market meltdown over the next few months or couple of years with european and subsequent us collapse. It seems more likely that rbyc will also suffer during this time.

On the other side of this tho, as gold is increasingly revalued by massive institutional reinvestment into the sector (currently below 1%, what happens if it returns to 5%???) and even the possibility of physical gold getting actually extremely scarce (who'll sell it if it skyrocketing at same time fiat currencies are diving?) the future mania should eventually bleed over into gold mining shares. 

By this time I hope we have well over 100K annual produx, up to limits of water onsite, and would be awesome if we had 10+M oz of resource. Sky's the limit, besides the fact that in usd terms the price may seem meaningless to us today as fiat continues its descent towards zero. Since fed was begun in 1913 usd has declined 95-97% already. I expect the speed of to pick up.

that's why I predict we could see a current usd valuation of $500 by 2020 in real 2011 terms in a true gold stock mania the likes of 1979-81.

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