RBM - Redbank Mines

[AJ_]

hello,

hae some information that a very good report is coming out in a few days...

dont' say i didnt warn you

 

[Love Zn]

Their June presentation has in at least three places that they are expecting drilling results in July, so not really anything new.
http://www.redbankmines.com.au/files/7zQ5rklN7EesMsNS.pdf

MACD starting to look good too.

 

[steven1234]

I got in on this at 12c. I can only see upside for the month of July with all the news scheduled.

Once the news is anounced i would also expect the broker report to also be upgraded. Lets hope with a larger resourse they attract more investors.

 

[mick2006]

looks like a bit of interest is starting to build in RBM this morning, it is one that I have been holding for a while waiting for it to come good.

Has some very recent exciting copper drilling results, with some more on the way shortly as well as a resource upgrade due on their Redbank Copper Projects, which are both due in July so sometime in the next two weeks.

The only thing that has been holding this one back is the slow ramp up in copper production, but hopefully with the resource upgrade done they can focus on getting the production right.

Below is a link to an excellent recent presentation and a research report by Aegis Research valuing the company at 33c even before the upgrade on their copper project.

http://www.redbankmines.com.au/files/7zQ5rklN7EesMsNS.pdf

http://www.redbankmines.com.au/files/YJmcpbIqkuujoUko.pdf

 

[Sean K]

Breaking what I see to be most resistance at 15, but needs to hold EOD for new trend to start. Potential is there for re-rating by this chart. Downside limited to 12 cents, so not much risk in perspective for active traders with good exit plans.

 

[mick2006]

thanks Kennas, I have been debating whether or not to grab a few more RBM as I believe the Resource Upgrade could be the catalyst for the next move higher.

They are already sitting on $650 million in good grade copper deposits with a real possiblity that the upgrade could pust this past the $1 billion mark.

They have an off take agreement with international commodity giant Glencore, who is likely to finance the upgrade in the processing plant to accomodate the increase in production.

What attracted me to them in the first place is the massive exploration potential as the Redbank tennements sit's half way between ZFX's Century Mine and McArthur River which is real mining elephant country.

 

[mick2006]

well I took the plunge today and added to my holdings in RBM, I like buying into companies that have short term news and longer term fundamentals at play.

For the short term they have the resource upgrade at Redbank and results from a couple of diamond drill holes which are both due before the end of July.

Remember also they are currently producing at a rate of around 1,000 tonnes a year copper, from existing stockpiles at redbank.

Longer term they have some serious exploration upside due to the quality/location of their tennements, and once they can upgrade their production to levels outlined by the company the market will have to sit up and take notice.

Would be interested to hear peoples views on RBM whether holding or watching!!

 

[Love Zn]

I bought into RBM a few weeks ago after reading their presentation and based on drilling results expected in July. But I became impatient last week and sold at $0.14 taking a small profit, mainly after I was informed of the companies previous history (poor management) http://www.topstocks.com.au/asx_stoc...ost&pid=114948 and wanting to invest more into Iron Ore shares.

I bet the drilling results come out this week after I sold

 

[surfingman]

I like buying into companies that have short term news and longer term fundamentals at play.

I'm with you along the same line of buying Mick, I brought in today looking at the 3 future target stages there is plenty of upside for this stock. Size of the Resource upgrade will be very interesting currently looking at a 5 to 7 year life span for the mine.

Stage 1: high grade oxide stockpiles, 1,000tpa Cu (Current)

Stage 2: Oxides from Bluff, Redbank, Azurite and other deposits, 3,000 tpa Cu, Revenue A$25- $30m pa (Q2 2008)

Stage 3: Sulphides initially from Sandy Flat and Bluff, production increased to 6,000 tpa, Cu Revenue A$50-$60mpa (Q4 2008)

Also with the possibility of dual production with the early stages of Gold project in Fiji aiming for initial 500 000 oz target.

 

[AJ_]

mick, long term holder here. has been a frustrating ride, but i feel things are about to change for the better.. my friend who is the 2nd top shareholder, thinks along similar lines

the market depth is looking a lot better, and it appears that some good information is being anticipated... which IMO is a great sign.

ps love zn, you can still buy some RBM before the annoucment comes out

 

[mick2006]

I guess the main reason I bought again today was the upcoming resource upgrade alot of stocks run pretty hard in the leadup and following a resource upgrade before taking a breather.

But after Kennas posted his chart analysis I realised there was a strong base forming above the 12.5c level so there is very little downside from here. Also if it breaks the 15c level it might go on a bit of a run, with hopefully the resource upgrade and drilling results being the catalyst.

It reminds be alot of when YT first identified FNT it had formed a solid base and had upcoming drill results and a resource upgrade (and we know how that turned out)

I am becoming more of a momentum based trader getting into stocks that have upcoming news and solid fundamentals that when added together can cause a sharp re-rating over a short period.

RBM has proven in the past that it can certainly move hard on news and I am hoping this is once again going to be the case as the market has forgotten this one over the last month, but judging by the activity today looks like business is starting to pick up.

 

[AJ_]

maybe we should alert YT to this one since he has so kindly shared his analysis of many great stocks.

 

[mick2006]

certainly will be an interesting day/week for RBM with it banging up against resistance at 15c (thanks Kennas), a spike in buying/volume yesterday and the upcoming drill results/resource upgrade/quarterly report, it will be one to keep an eye on in the coming days/week.

Another interesting point with RBM is the recent Aegis research report that values RBM at 33c they have appointed that value without the results of the upcoming resource upgrade, so one could assume that they will release an updated valuation once they know the extent of the upgrade, and as there are quite a few people that are members of shareanalysis.com it could create another round of buying in RBM.

Also contained in the report is the potential P/E ratings for 2008/2009 which certainly show if they can get there production right, they would be undervalued in comparision to other producers.

P/E 2008 7.2
P/E 2009 3.9

 

[motion]

Great work guys, this one has been on my list in the draw for a while..

Well gone into Suspened mode this morning... Must be some big news coming out.. Lucky to the people who got into yesterday....

I must have missed the Aegis report.. was this through the commsec sub or direct with Aegis mick ?

Thanks

 

[mick2006]

knowing my luck it will be a capital raising or something, but what i'm hoping for is a blockbuster resource upgrade or confirmation from the two deep diamond drill holes that there is something enormous under all the surface brecia pipes, and if that is the case watch all the big boys join in the party.

 

[Pommiegranite]

knowing my luck it will be a capital raising or something, but what i'm hoping for is a blockbuster resource upgrade or confirmation from the two deep diamond drill holes that there is something enormous under all the surface brecia pipes, and if that is the case watch all the big boys join in the party.

Good luck to all.

Unfortunately I missed the boat on this, as I was waiting for a sell order to clear since yesterday before I could buy.

I did carry out some research on this stock and wanted in mainly as RBM is a producer. Okay, it may be small at the moment, but at least it is getting some return on investment rather than 3 years in the future like much of my portfolio!

Also is a part of Martin Place portfolio..so can't be that bad

 

[Sean K]

knowing my luck it will be a capital raising or something, but what i'm hoping for is a blockbuster resource upgrade or confirmation from the two deep diamond drill holes that there is something enormous under all the surface brecia pipes, and if that is the case watch all the big boys join in the party.

Capital raising I think. They only had 180K in the bank at the end of the last quarter by my records. So, inevitable occurrance, but dilution is rarely treated as a positive. Unless you follow BMN or ECH. Could be significant results I suppose, but less likely.

 

[surfingman]

Capital raising I think. They only had 180K in the bank at the end of the last quarter by my records. So, inevitable occurrance, but dilution is rarely treated as a positive. Unless you follow BMN or ECH. Could be significant results I suppose, but less likely.

But they did announce yesterday that $300,000 cash + $200,000 in shares will be received by September for the sale of Gold leases.

Hoping its a resource upgrade!!!!

 

[mick2006]

hey kennas, I get that dreaded feeling too I would of thought they would of waited till the release of the resource upgrade so they would of got a better deal for the placement.

Although they raised $480k late may and announced yesterday a deal that will net them $500k so the optimist in me hopes it is exploration related not capital raising related.

Or even better with so many takeovers in the resource space maybe someone feels that RBM is ripe for the picking (I can dream can't I)

 

[Sean K]

But they did announce yesterday that $300,000 cash + $200,000 in shares will be received by September for the sale of Gold leases.

Hoping its a resource upgrade!!!!

Yep, but they're spending about $1-1.5m a quarter, so they need a top up even with this. If this ann isn't about a capital raising they will need to soon.