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Redback Mining

  1. From another forum:

    "RBK- Redback Mining.
    > --------------------------------------------------------------------
    -
    > Some facts:
    > --------------------------------------------------------------------
    -
    > - Their Chinaro gold project in Ghana has reserves of 1.9M ounces.
    > --------------------------------------------------------------------
    -
    > - Consultants Resources Services group have recently conducted a
    > feasibility which showed that that a mine producing 140,000 ounces
    at a
    > cash cost of $200 USD/oz for 7.5 years is possible.
    > --------------------------------------------------------------------
    -
    > - Redback are in the planning stage now, and are on track to start
    > production at the Chinaro mine within 12 months.
    > --------------------------------------------------------------------
    -
    > - Redback has minimal hedging exposure, as up till this time they
    have
    > predominatly been a exploration company.
    > --------------------------------------------------------------------
    -
    > - Redback has approx 80M shares on issue... which on their current
    price
    > of $0.36 per share, gives them an approx market cap of $30M
    > --------------------------------------------------------------------
    -
    > At a POG of 320 USD/oz, their gross cash margin would be approx 120
    > USD/z.
    > --------------------------------------------------------------------
    -
    > Their net cash cost after capital expenditure, taxes, etc could be
    > assumed at approx 80 USD/oz... which equates to approx 150 AUD/oz.
    > --------------------------------------------------------------------
    -
    > At 150,000 ounces production, we're looking at a producer that in 12
    > months will be bringing in approx $22-25M AUD p.a.
    > --------------------------------------------------------------------
    -
    > ... yet their market cap is only slight above this at $30M.
    > --------------------------------------------------------------------
    -
    > On conservative estimates, we're looking at a future producer
    trading on
    > LESS THAN 2x free cash flows.
    > --------------------------------------------------------------------
    -
    > This stock is a BARGAIN that is unlikely to last long.
    > --------------------------------------------------------------------
    -
    > All the above is based on the present POG of $320 USD/oz.
    > --------------------------------------------------------------------
    -
    > I hold some RBK stock"

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