ROL 0.00% 48.5¢ robust resources limited

now where for robust resources...

  1. 1,149 Posts.

    Several days ago I thought the MC would hit 100 Mil in a few weeks. I was wrong it is already 93 Mil and likely to excel past 100 Mil during this coming week. Not even with any extra drill results coming out- IMO.

    With ONLY 48.7 million shares on issue this will be approx. SP of $2.05. We nearly did it on Friday as it skyrocketed towards $2.

    IMO- a MC of 100M may prove some resistance for interested risk adverse brokers and investors. Yet may skyrocket past this MC if more high grade results keep coming out.

    Comparing Lihir Gold to the finds on Romang Island for ROL I have found the follwing that maybe of interest to many:

    >>It's early days yet, but by way of comparison Lihir Gold's mine, which has been in production since 1998, is located on a volcanic caldera within which the company estimates that probable reserves stood at 18.5 million tonnes of 2.87 grams a tonne estimation at the end of 2007. Production in calendar 2008 totalled 770,000 ounces for LGL. <<

    To me, I feel drill results exceeding 2.5 grams a tonne are highly valued. Some of ROLs latest drills have indicated this and thus the raise in SP.

    >>Robust's Romang Island project also covers an entire volcanic caldera, which forms the 25,000 hectare island in Indonesia's Banda magmatic arc. In a report earlier this year, the company described the caldera as "a mineralising system comparable in size to that of the Lihir gold mine in Papua New Guinea". <<

    Although the latest drills have indicated that the size could greatly exceed the Lihir gold mine in PNG. Some of the latest results have been world class results for a potential mining production area.

    This is exciting due to the potentially enormous mines that could be developed as further high grade results are confirmed and on going.

    In reading Robust's presentations throughout this year I feel they would love to be bought out after striking all these high grade results. I recall seeing the recommendation as a long shot earlier in the year. It is no longer a long shot- IMO. It will now become a mine, how fast and by whom who knows. After all the drills are completed and the 3D imaging is complete on all areas by March 2010. They will have one hell of a sales pitch to bring to the likes of BHP, RIO, etc.

    As long as they keep pumping out good results regularly this stock will rise. They already have some very strong results and i would not be surprised if they have gained the interest of the large producers already to take this to another level. As a large producer will speed up the process turning the exploration activities into a mine. No doubt Talbot, Trafford Resources and the heavily invested Directors will be jumping for joy. They are now on an excitement 'High' and this will speed up the drills dramatically. Plus releasing of ANNs to market- IMO.

    It is a good thing that Robust is so heavily invested by some great negoitators- IMO, as whilst they could be looking to negoitate out of their position at 1000%++ profit right NOW. As Ken Talbot did with MCC to place himself in the richest few in the country. We should be wary that whilst these negoitators put on the pretense of acting in the best interests of shareholders. They purely act in the best interests of themselves! I do not care if it is the MD or an independant investor. That being said Talbot will attract some big names for potential takeover talk then negoitate his own position out for a HUGE profit. He has this gift for self interest making him the perfect as a professional investor... Yet he will dump when he feels the time is right and I will not wish to be in the stock when Talbot sells out. As many an investor has been left with the crumbs as Talbot exits a company- IMO.

    I was an investor in MCC when Talbot was MD and supposedly acting in shareholders best interests. I only invested in MCC as Talbot was the MD, more so than the company. When he negoitated his own deal seperately, then resigned as MCC MD and the shares plummeted. I was burnt by Talbot yet it taught my an important lesson in human nature and the pschology of the market. He is supposedly still being investigated for his MCC dealings, yet ASIC are hopeless and he is far too smart for them. This time he is an independant investor, he will promote talk of takeovers in the future just to exit at the best possible price for him... He will have a target with this company just as any professional investor does... Is it now, I do not think so as he would have wagered his holdings in this company for at least a 1000% profit. That puts his target closer to $3-$4- IMO.

    IMO the optimal time to exit will be at the peak of any takeover talk in 2010. By then we can all hope that the SP is several $$. Yet to exceed a MC of 250 Mil will take continued great results AND takeover talk or they approach becoming a mine themselves in a few years time- IMO.

    I like this company only because I can see the players involved and they are after fast money, not to develop a mine over a slow 5-10 year period... IMO. They will pump out the best results as fast as they can and the professional negoitators will start talks of takeovers with XYZ (BHP, RIO, Newcrest, take your pick). In reality this could all happen from anytime now, as some drill results have exceeded Lihir PNG drill results in the 90s already. And we have more to come- IMO.

    This stock will be sold out by current major shareholders at huge profits over the next few months- IMO.

    How much is it worth? Well the market saids 93 Mil currently. Come June 2010 this stock could be several times this if current results are promoted correctly by the company. Worst case now- IMO is the gold price crashes and the future drill results do not live up to high expectations. Like what happened to Bulliton in 99, gold was worth $300 and their drill results were just OK. So gold needs to crash hard and future drill results need to be poorer than anticipated and the company is not promoted correctly for a takeover offer- IMO unlikely given the players involved.

    An exciting stock play yet is not for the faint hearted over the next couple of months. Worth a punt under $2.50 (MC= $120 Mil) with no further improvements to drill results or talk of takeovers- IMO. Further exciting drill results, current investors loading up at current levels (Especially Talbot or Directors- IMO) or takeover talk may turn the current 93 Mil cap into a 500 mil MC in a very short period- IMO.

    All the best to ST and LT investor.
 
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