RCO - Royalco Resources
- Thread starter powwww
- Start date
-
- Tags
- rco royalco resources
$360,000 trade went through today in one hit. 20 trades for the day to the value of 470k and only a small rise in share price of 2 cents. I didn't follow how many were buys rather than sellls, but over 700,000 shares traded for the day.
Possible change in substancial holder?
Or are we looking at sell off on the cards?
Biggest days volume since the 12th of October 2006.
Am clueless to where its heading but the big trade of 360k caught my eye.
Possible change in substancial holder?
Or are we looking at sell off on the cards?
Biggest days volume since the 12th of October 2006.
Am clueless to where its heading but the big trade of 360k caught my eye.
- Joined
- 8 March 2007
- Posts
- 2,580
- Reactions
- 3,476
RCO
No/Negligable Volume
No/Negligable Buyers
No/Negligable Sellers
Where to from here?
Bon Voyage and Gods' speed
Captain Chaza
No/Negligable Volume
No/Negligable Buyers
No/Negligable Sellers
Where to from here?
Bon Voyage and Gods' speed
Captain Chaza
Hi Guys,
I just noticed RCO is presenting at the singapore mining conference. Could be interesting to see what interest the team comes back with.
http://www.terrapinn.com/2007/asiamining/
It might be a coincidence that the are presenting right after OGD Oceana gold who recently took over Climax. RCO just happens to have the adjoining tenements along the same fault/valley as OGD's copper/gold deposit in the Philippines. RCO also has a royalty over OGD's reefton project which should be fully commisioned this coming month.
In regards to the SP, the stock has been quietly accumulated by a few parties close to the company. If there was any decent volume come onto the sell side of the screen there are buyers already waiting in the winds. There are some small insto's who are looking to accumulate should the opportunity arise.
cheers,
Cryonix
I just noticed RCO is presenting at the singapore mining conference. Could be interesting to see what interest the team comes back with.
http://www.terrapinn.com/2007/asiamining/
It might be a coincidence that the are presenting right after OGD Oceana gold who recently took over Climax. RCO just happens to have the adjoining tenements along the same fault/valley as OGD's copper/gold deposit in the Philippines. RCO also has a royalty over OGD's reefton project which should be fully commisioned this coming month.
In regards to the SP, the stock has been quietly accumulated by a few parties close to the company. If there was any decent volume come onto the sell side of the screen there are buyers already waiting in the winds. There are some small insto's who are looking to accumulate should the opportunity arise.
cheers,
Cryonix
doctorj
Hatchet Moderator
- Joined
- 3 January 2005
- Posts
- 3,271
- Reactions
- 8
How'd you come up with $1.10?
See post below regarding yesterdays anouncement sourced from another forum. by BuffetJr...
Today's announcement by RCO is excellent, and supports my recent post about the work they are doing in the Philipines.
They now have exploration access to one of their 'top 3' prospect areas, PAO. The others are Gambang and Malangza (though their other areas are by no means substandard). Gambang is my favourite (since I've seen what's there)...Malagza is a conceptual play (some access already granted here) that has the potential to be, well, 'earth shattering' would be an accurate term. But must more greenfields it seems.
Historic sampling at PAO as per following shows the 'potential':
"Historic sampling of the Manidyo vein has recorded up to 49.42 g/t gold, 348 g/t silver and 3.94% copper in assays, whilst samples from Digyan have assayed up to 95 g/t gold, 272 g/t silver and 13.6% copper. The outcropping vein at Manidyo is approximately 10 metres wide and at Digyan the vein is approximately 4 metres wide."
Of course they need to throw the lie detector down there to see if there is anything beneath. As shown by the graphic in the announcement however, the fact that these two areas are quite distinct (about 1km separate) shows the obvious mineralisation potential of the project.
Unfortuantely this was not one of the project areas I visited in December (refer posts and pictures in earlier posts) so couldn't see it first hand. Though my friend has (can't shut him up about it!).
Drilling should begin during July, probably towards the end or early august. If they hit something...thats when the fun really begins.
BuffetJr
Today's announcement by RCO is excellent, and supports my recent post about the work they are doing in the Philipines.
They now have exploration access to one of their 'top 3' prospect areas, PAO. The others are Gambang and Malangza (though their other areas are by no means substandard). Gambang is my favourite (since I've seen what's there)...Malagza is a conceptual play (some access already granted here) that has the potential to be, well, 'earth shattering' would be an accurate term. But must more greenfields it seems.
Historic sampling at PAO as per following shows the 'potential':
"Historic sampling of the Manidyo vein has recorded up to 49.42 g/t gold, 348 g/t silver and 3.94% copper in assays, whilst samples from Digyan have assayed up to 95 g/t gold, 272 g/t silver and 13.6% copper. The outcropping vein at Manidyo is approximately 10 metres wide and at Digyan the vein is approximately 4 metres wide."
Of course they need to throw the lie detector down there to see if there is anything beneath. As shown by the graphic in the announcement however, the fact that these two areas are quite distinct (about 1km separate) shows the obvious mineralisation potential of the project.
Unfortuantely this was not one of the project areas I visited in December (refer posts and pictures in earlier posts) so couldn't see it first hand. Though my friend has (can't shut him up about it!).
Drilling should begin during July, probably towards the end or early august. If they hit something...thats when the fun really begins.
BuffetJr
My price of $1.10 as per earlier post was based upon valuation by a broker far smarter than me. When I bought for $0.52 I was told that the stock was worth $1.10.
I am now looking to sell @1.20 in spite of the latest good news in the hope than I might buy in again later at a cheaper price. Nothing has changed the broker's opinion that the price has gone up since my quote in April.
I am now looking to sell @1.20 in spite of the latest good news in the hope than I might buy in again later at a cheaper price. Nothing has changed the broker's opinion that the price has gone up since my quote in April.
RCO has announced the payment of a 10cps distribution, based on Friday's close this is essentially an instant 20% ROI. Not only that but the distribution does not need to be added to assessable income, so is not taxed (but does reduce the CGT cost base by 10c for shareholders share by 10cps). Article covering the announcement on Proactive Investors:
Further to this Royalco Resources has indicated that their ongoing policy will be to return 60% of after tax profits in dividends so it's likely we will continue to see a good return from this share...
Profit ending 30th June, 2009 was $4.783m. Times this by 60% and divide by 53m shares = 5.5cps.
$5m from Reefton alone, 60% of that is over 5.5c per share...AUD Gold was $1260 at this quarterly's release, it's now $1375, $115 (9%) higher.
In September 2009 their royalty interest was valued (by DMR Corporate) between $15.88m and $16.96m - Link to announcement
Even after payment of the the distribution they will have around $9m in cash/bullion and a royalty valued at $16.5m (taking the midpoint), total net assets of $25.5m. Their market cap at 50c is around $26.5m, so even after the payment they will be trading at barely over net asset value (if SP didn't rise higher from here), with no value priced in for the further developments since that royalty valuation (e.g. re Gambang tenement, Gold price increase, etc).
Extreme value buying here IMHO. Over 20% back in your pocket within a few weeks if you manage to buy at 50c. Tell your friends!
Article Link
Further to this Royalco Resources has indicated that their ongoing policy will be to return 60% of after tax profits in dividends so it's likely we will continue to see a good return from this share...
Link to Announcement
Profit ending 30th June, 2009 was $4.783m. Times this by 60% and divide by 53m shares = 5.5cps.
March 2010 Quarterly
$5m from Reefton alone, 60% of that is over 5.5c per share...AUD Gold was $1260 at this quarterly's release, it's now $1375, $115 (9%) higher.
In September 2009 their royalty interest was valued (by DMR Corporate) between $15.88m and $16.96m - Link to announcement
Even after payment of the the distribution they will have around $9m in cash/bullion and a royalty valued at $16.5m (taking the midpoint), total net assets of $25.5m. Their market cap at 50c is around $26.5m, so even after the payment they will be trading at barely over net asset value (if SP didn't rise higher from here), with no value priced in for the further developments since that royalty valuation (e.g. re Gambang tenement, Gold price increase, etc).
Extreme value buying here IMHO. Over 20% back in your pocket within a few weeks if you manage to buy at 50c. Tell your friends!
Good to see further mainstream coverage of this announcement:
http://www.businessday.com.au/busin...-a-goldmine-for-reelection-20100516-v6d5.html
Buy side building with very few sellers.
http://www.businessday.com.au/busin...-a-goldmine-for-reelection-20100516-v6d5.html
Buy side building with very few sellers.
- Joined
- 19 May 2010
- Posts
- 293
- Reactions
- 1
Seems this can't get any long term interest from even hard core intrinsic value investors. I did a blog post on this summarizing the value of RCO (hint, it's very short and finds RCO is very undervalued). Several nice tidbits from management in the quarterly, let's hope a few buyers start to line up, the disconnect between value and price doesn't last forever.
Sean K
Moderator
- Joined
- 21 April 2006
- Posts
- 22,040
- Reactions
- 11,053
Sorry, why is it very undervalued? How do you actually 'value' something like this? Interested to hear....Cheers, kennas
skc
Goldmember
- Joined
- 12 August 2008
- Posts
- 8,277
- Reactions
- 329
Seems this can't get any long term interest from even hard core intrinsic value investors. I did a blog post on this summarizing the value of RCO (hint, it's very short and finds RCO is very undervalued). Several nice tidbits from management in the quarterly, let's hope a few buyers start to line up, the disconnect between value and price doesn't last forever.
Thanks for pointing out. I am afraid you need to look more carefully on the royalty arrangements. The gold coming in only runs to the end of 2012... no one will pay a PE multiple on that. Just discount the 2 annual payments to present and RCO share price isn't that far off compared to the "confirmed" assets.
- Joined
- 27 June 2010
- Posts
- 4,153
- Reactions
- 313
On February 18th, 2020, Royalco Resources Limited (RCO) was removed from the ASX's Official List in accordance with Listing Rule 17.4, following despatch of the compulsory acquisition notices by Fitzroy River Corporation Limited.
