That's not looking good at all to me... also appears the plastic follower down inside the engine tower is worn also, the one the chain tensioner forces agains....
Does this bike have a manual chain tensioner installed?
? This... is the exact reason I am sooo against those manual adjusters....
If not, id still measure the dinstance between links and compare to the spec in the FSM....
On another note....
CAREFULLY remove ALL of that goober RTV sealant, and don't drop any in the valve area... that is wayyyy sloppy and when this stuff migrates to the wrong places, it will shut off your oil flow... and you will be replacing an engine... the ONLY place RTV should be used, is in the crescent shaped cutouts at the ends of the cam shaft areas where the cover gasket seals... NEVER use RTV in this manner for a replacement for a poorly sealing gasket.
Best of luck.