RCH richfield group limited

this is what rch is trying to achieve now

  1. 1,057 Posts.
    If we apply the same resource valuation that the Koreans are paying to buy into the Mount Hope resource in the US then $US637M would be the value of RCHs deposit if it its size is 200Mt (Rio estimate) and $318M if it is 100Mt in size (very very conservative). A similar 20% stake would cost a farminee $127M if its 200Mt in size and $63M for a 100Mt size project.

    Now if you were a steel maker in China, Korea or Japan would you prefer making such investment on the other side of the world or just around the corner?

    The geographic proximity of the deposit, super high grade and purity of the metal should see RCH cut a deal pretty soon.

    Fully diluted RCH has a market cap of say $90M compared to the 100Mt valuation of $318M. However it is highly likely that RIO was correct and its size is $200Mt. This would value the resource at $637M.

    This baby has upside potential and the next leg up will be on an announcement of a JV partner. I'm betting it will be a steel producer in our region.

    Jan 08

    POSCO to Invest in U.S. Molybdenum Mine

    Korea's largest steelmaker has decided to explore a molybdenum mine in the U.S. in order to secure a steady supply of the raw material. Molybdenum is used to produce high-end steel products such as API steel for oil pipelines and stainless steel.

    POSCO said Tuesday that it has signed a deal with General Moly, a U.S.-based molybdenum mineral exploration and development company, to create a joint venture to develop the Mount Hope mine in Nevada.

    POSCO, the world's fourth-largest steelmaker, plans to acquire a 20 percent stake in the project by investing US$170 million through its Canadian branch POSCAN and its subsidiary Samjung P&A. This will give the Korean steelmaker the right to buy 20 percent of the molybdenum produced from the Mount Hope mine from 2010.


 
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