RMI 0.00% 1.7¢ resource mining corporation limited

young traders on board now wowo zoom zoom

  1. 3,292 Posts.
    lightbulb Created with Sketch. 200
    Check this out YT,s on board and his resesarch as usual is first rate this one is primed and now backed for a re rating 40 cents here we come bring on the anns wowowowoowow:):):)


    RMI


    Mkt Structure

    Shares
    430m
    Mkt Cap @ 7c = $30m Current
    Mkt Cap @ 15c = $65m Target 1
    Mkt Cap @ 20c = $86m Target 2

    TOP 20 = 52%
    Substantial Shareholders
    Sinom (Hong Kon Stell/Iron ore Insto Group) 13.4%
    ANZ 8.4%
    Mount Gibson Iron MGX 7.4%


    Cash
    $2m not alot so will obviously need more down the track


    Projects



    Wowo Gap Nickel, 100%, PNG
    [email protected]%Ni + 0.1%Co = 1.7%Ni Equiv

    Note that my research on Wowo Gap has found that based on all the historical work, the PNG government is confident to quote a JORC of
    [email protected]%Ni Equiv

    Valuation
    As its a laterite Project I'd say once the JORC is firmed up a $1000/t EV is appropriate (Note Spot $35k - $50k/t)

    For now until we recieve assays and confirmation of the mineralisation I will use $100/t Ni EV

    [email protected]%Ni Equiv = 2Mt+ Ni @ $100 = $200m = 47c RMI

    Now the mian points are
    1. Although the current JORC has a low confidence level, detailed research of PNG databases has revealed a JORC of [email protected]%Ni Equiv is being quoted, so there is plenty of upside to the jorc, this in turn has greatly increased my confidence in the project.

    2. Given the huge technical and infrastructure costs, a JV with a major is a must! = Farming out/down of interest, but see HIG, they sold a majority stake in Ramu ([email protected]%Ni Equiv) to the Chinese so a JV partner shouldn't be a problem


    Blackstone/Michael Hills Ni/Cu/PGE/PGM, 25% Free Carried by RDS, Musgrave Province W.A.
    The project is 30Km's away from WMC's Babel and Nebo Nickel Sulphide deposits,

    While its early stages, Patersons are highly encouraged by the work so far and belive that RDS/RMI are onto something quite promising here

    Valuation
    I like Patersons fully agree that the bulk of RDS's current mkt cap is attributable to these projects,
    Hence a comparative valuation can be made

    RDS 90m shares @ $1.40 = $26m for 75% Interest

    Thus RMI's 25% Interst is worth $42m = 9-10c approx RMI


    Argyle Iron, 75%, W.A. near Wyndham
    JORC [email protected]%Fe

    Unfortuantely this deposit is somewhat stranded and RMI will need to show a clearer path to development before I will value it properly,

    However apparantly their has been strong Chinese interest in a potential JV, once one appears I will re value this project

    Valuation
    As stated, due to development uncertainty the project only deserves an EV of $2.50/t vs $5/t I was happy to use for CUL's

    [email protected]%Fe = 9.35Mt, 75% Interest = Net 7Mt's Fe
    7Mt's Fe @ $2.50/t = $17.5m = 4c RMI

    If a chinese JV or clearer path to development appears I will be happy to use $5/t = 8c RMI




    Qld 3 Rivers Ni/Cu, 10% Free Carried by SRL, Greenvale Qld
    SRL should have drilled 3 deep holes to test for NI/Cu sulphides, not sure where this project is at



    Summary

    - WOWO could be a company making project, remember JRV's run? 400% in a month based on its huge laterite Nickel Project
    - The RDS JV underwrites/implies an SP of 9c-10c
    - The Argyle Iron Ore Project adds 4c in spec value (8c once I see JV etc)


    Total Value I see pre Wowo Gap rerating = 23c
    After more confidence in Wowo = 40c+

 
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Mkt cap ! $5.540M
Open High Low Value Volume
1.8¢ 1.8¢ 1.7¢ $4.333K 249K

Buyers (Bids)

No. Vol. Price($)
3 76220 1.7¢
 

Sellers (Offers)

Price($) Vol. No.
1.9¢ 43478 1
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Last trade - 15.16pm 26/02/2021 (20 minute delay) ?
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