1. 1,816 Posts.
    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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