RCH richfield group limited

how big do the punters want this

  1. 1,057 Posts.

    This is what the current size of the resource is

    106Mt at o.12% MO (Double most Moly companies grades)with a
    17Mt at 0.23 MO high grade core.

    This what it can be

    200Mt to 300Mt at X% (we don't know yet) or $1.7Billion to $2.5% Billion in the ground value if the grade is constant.

    I'd given some profit examples except nobody is paying attention. I'll just say the numbers are very very big.

    It could be the finalisation of a JV agreement which will finally light the fuse under the SP. I've demonstrated that returns for a JV partner are in excess of 100% for each of the first 3 years using a small 7.2M plant. If the resource is doubled in size and the mill is doubled in size the profits do the same.

    I wonder if other big Moly resource owners were initially ignored by the market?

    By the way this deal has been worked on for 3 years it isn't something a chook hatched last week. The Santo geo who worked on it back in 1982 is on board and he has been trying to get hold of it for 15 years.

    Everything is coming together nicely and I would expect some more juicy announcements going forward.

    PS: The company knows that their presentation was crappy and was done in a rush. They are going to work on it.
 
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