Australian (ASX) Stock Market Forum

RCO - Royalco Resources

Figuratively speaking "don't talk to me until..." 1,000,000 plus shares are traded. When it happens I would be seriously surprised not to see a jump closer to 50% than from what we saw today.
 
RCO quarter cash report....

thumbs up or down???

nothing we didn;t know i dont think.

no nasty secrets....

wouldnt mind a cheeky dividend....
 
Very positive imo,

Couple of significant developments regarding the approvals were touched upon.

Drill rigs due at Gambang March.

And not long after in Pao.

Look out for updates in a few weeks.

Rgds, powwwww
 
$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.
 
Looking good Ken.

Now all we need is the drilling to start say, March April and this puppy could be on fire.

Cannot wait.

Hope you're set as I can't see where selling will come from over the next weeks...Rgds, P
 
RCO

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
 
Charge since Xmas in share price should continue until it reaches target of $1.10 hopefully sooner rather than later

:bounce:
 
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
 
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.
 
takeover offer for all shares at 30c (on-market thus the large buy order at 30C), directors have rejected the offer for their 18% holding, by anglo pacific who have purchased shares on-market at up to 48c

cheers :)
 
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:

Royalco Resources (ASX: RCO) has determined that a cash distribution of approximately $5.27 million should be made to Royalco shareholders in the form of a return of capital of 10 cents per share.
This distribution is to be made due to Royalco having surplus cash for its current operations. As previously announced to the market, as at 28 April 2010 Royalco had cash/liquid assets of approximately $14.2 million.
After a review of Royalco's financial position and its ongoing cash requirements, the company said it has concluded that its cash/liquid assets are more than adequate to continue its development and objectives.
The conclusion is on the basis that the company expects continued cash inflows from royalties, minimal expenditure commitments over the next 6 months and has no immediate other opportunities for acquisitions.
Accordingly, Royalco considers that it would be in shareholders' interests to return some of the surplus funds to shareholders at this time.
The proposed return of capital must be approved by Royalco's shareholders at a general meeting. Royalco also proposes a special resolution to amend its constitution to allow for certain alterations of capital, including reductions of capital.
The meeting is to be held at 10:00 am on Wednesday 16th June 2010 at the offices of Baker & McKenzie, Level 19, 181 William Street, Melbourne.
Royalco Resources shares rose 10% to 48 cents in trading this morning.
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...

Dividend policy
Given the inherent and likely long-term profitability, of Royalcos business model the board of directors of Royalco has endorsed an indicative dividend policy:-
1. Dividends to commence once they can be classified as fully franked.
2. Biannual payments.
3. Up to 60% of after tax profits will be paid as dividends.
4. The board retains the right to alter the formula in the event of unforeseen circumstances.
Royalco executive chairman, Peter Topham, said, Royalco is in a strong financial position and the board is very pleased to be able to report its maiden profit result.
The board considers it likely that the company will generate a similar level of net revenue in the current financial year.
If that is the case it is possible the company may be in a position to implement its dividend policy in 2010.
Link to Announcement

Profit ending 30th June, 2009 was $4.783m. Times this by 60% and divide by 53m shares = 5.5cps.

Royalco currently holds a total of ten royalty interests of which three produced income during the quarter. Using prevailing spot prices for gold, income for the quarter from these interests was $1.8 million.
...
The delivery of physical gold into the Companys account at AGR Matthey continues under the Reefton royalty agreement with Oceana Gold Limited. The royalty payment for the December quarter was 1314 ounces pre New Zealand withholding tax. Subject to the spot price remaining above NZ$900 (currently NZ$1500+), royalty receipts should adjust back to the original rate of 1250 ounces per quarter pre withholding tax. At prevailing prices and exchange rates this equates to approximately $5 million per annum in net royalty income.
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
MELBOURNE-BASED royalty/exploration company Royalco Resources (ASX: RCO) is in the minority among the juniors on the cash holdings score - so much so that it is returning $5.27 million (10 ¢ a share) to shareholders.

Structured as a tax-effective capital return, the payment reflects Royalco's assessment that it is sitting on cash surplus to its needs. At last count, it was holding some $14.2 million in cash/liquids assets (27 ¢ a share).

Due mainly to its production royalty on a New Zealand goldmine, the expectation is that, while the cash position gets reduced by the capital return, it could be back to where it was by the end of the year anyway. Surging gold prices help.

The prospect of more capital returns to come was behind Royalco's share-price rise during the week to 50 ¢ a share at the close of trade on Friday, for a market cap of about $26 million.

Buy side building with very few sellers.
 
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.

:2twocents
 
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.

:2twocents

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.
 
Well I for one think this is undervalued. Did anyone else see the recent announcement about the part purchase of the weeks royalty? I've been watching this stock for a while now and this announcement was enough to make me pull the trigger.
 
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.
 
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