RDM - Red Metal

[finicky]

From about 3 months ago. M.D discussing Sybella at discovery stage. They found the prospect through a search of a govt geo database. So many favourable aspects if the resource is a goer. There is also a little heavy RE content in the mineralisation in addition to the lighter Nd/Pr elements and I was reading elsewhere that this heavier stuff is what is more scarce and what big companies like LYC are looking to acquire. As he says in this interview, small percentages of Dysprosium (one of the heavies, there is also Terbium) even at lower recoverability is still a hell of a lot of valuable kilograms when you are bulk mining mega tonnes of ore to get the main Nd/Pr payload.
Note comments about 20kms proximity to Mt Isa and even closer to an acid producing plant.

 

[finicky]

My only performer today - up 21% with volume.

DAILY

 

[Bailxtrader]

Buy you some cigars. That's a nice score. I hope you were counting your parcels still a long way to go. Big week ahead. Got me talking like a little kid. I trust you know what's going on. Watch out for short stop.

 

[finicky]

I trust you know what's going on

I have NFI as they say in the classics

Held and Holding
Will only be lightening if it 3 bags from my entry of 0.091 - i.e around 30-35c. Not predicting that in this rally btw.

 

[finicky]

Excerpt from recent SMH article. Of note I think is comment about a degree of heavy RE content. My bold ..

Red Metal hails rare earths proof-of-concept breakthrough

A new style of rare earths for the EV market – it’s not clay and it’s not hard rock, so what is it?

www.smh.com.au

ASX-listed Red Metal’s innovative “metallurgy-first” approach to defining the potential of its unique rare earths discovery in Queensland has paid early dividends, with recent testing showing extraction levels up to 90 per cent on two key elements that are used in the lucrative electric vehicle (EV) market – neodymium and praseodymium.

The testwork also showed maximum extractions of the rarer heavy rare earths, dysprosium and terbium, of 60 per cent and 64 per cent, respectively. Both dysprosium and terbium are typically only mined in serious quantities in China and both are also crucial ingredients in the manufacturing of industrial magnets that are a key part of an EV engine.

Held

 

[finicky]

All of yesterday's 'dramatic' gain wiped out. I'm hoping for it to crash further as I'm up or risking more on this. Although I haven't decided on a bid yet.

Held and Holding

DAILY

 

[finicky]

RDM holding well but have only to look back to August to see a spike fizzle and give up all its gain. But what an opportunity that subsequent lull was. That August brace of high volume positive candles was a harbinger of a stronger spike to come +5 months later. Often seems to happen with specs. I would welcome a significant retreat to add, as this Sybella discovery has a vibe of substance and the company has other prospects with the MMA majority holding and the Havieron lookalike near Winu in the Patterson province.
If I had to bet though, it would be that price will consolidate then break higher - but not high conviction at all.

Held and Holding

DAILY

 

[finicky]

Just a brief charting opinion piece on this hot spec. I'm now expecting further correction after the -8% drop on Monday. That's two candles now with long upper wicks (inverted hammer candlesticks). The RSI momentum is retreating from overbought and there are gaps below. This is against a background of a lot of freshly minted placement and rights shares @ 0.085 along with attached 1 for 2 options exercisable @ 0.13. So lots of potential supply and many others are holding at a profit. Momentum traders probably already leaving.
Further I am not expecting imminent news. It's ok with me as I like the longer term prospects and will consider buying more if it goes a lot lower - don't have an idea of my target yet.

Held and Holding

DAILY

 

[finicky]

Price being supported whenever it drops to 0.165.
Complimentary infomercial from Stockhead:

Barry FitzGerald: This potentially cheap, massive rare earths producer has a whiff of world-class about it - Stockhead

While things might be tough for the ASX rare earths stocks, the broad expectation is that things could be looking a lot better in the second half.

stockhead.com.au

 

[finicky]

Well beats me, up 22% on high volume.
I was counting on a pullback.
Might be the stonkhead audio interview with the M.D concurrent with the article mentioned above.
Still thinking of selling 1/3rd of these if s.p reaches 35c for roughly a free carry - CGT might trim a bit off.

Held

DAILY

 

[finicky]

So RDM did correct to a more normal looking consolidation (a triangle?) but still holding well after today.
As I recall, last positive news was about a second independent metallurgical analysis of the Sybella deposit samples by ANSTO which roughly confirmed low grind, low acid consumption and good recovery of rare earths at atmospheric pressure. That is, suggesting low cost processing although this is a novel sort of deposit. Just a casual lay take. Guess we'll see.

Held

DAILY

 

[finicky]

On reflection this uptick is almost certainly about Red Metal's 53% ownership in Maronan Metals (MMA), not about the Sybella rare earths deposit. MMA went up 16% today and its fan base is silver bugs.

I was looking at MMA's updated MRE which now includes a bit of indicated resource and a more detailed analysis of a shallow starter mine for earlier development. There's about 38m ozs of silver in that mostly inferred starter zone at this stage for a lead component cut-off of 3%. The figures are 11.1m tonnes @ 5.3% lead, 111g/t silver (i.e 3.5 oz/t) and 0.13g/t gold. So isn't that 38m ozs of silver there in a conceptual mineable body from surface, 600m deep and 500m strike? Haven't seen anything yet about metallurgy. Wouldn't most of the mining and processing costs be covered by the lead and small amount of gold? That's before capital cost of a plant. At a silver price of A$35/oz the gross value I get for the silver is over A$1.3 billion.

 

[finicky]

Early metallurgical study looks good for the shallow levels of the Maronan Silver-lead copper-gold MRE by Maronan Metals (MMA).
So far 84% silver and 95% lead recoveries to a concentrate. Posted on the MMA thread. Red Metal currently owns 53% of MMA..

 

[finicky]

Advancing met trial results still looking like RDM have a runner if the RE space lights up in future.

Held and
Holding

 

[finicky]

Step out drilling confirms high tonnage REOs, much of it from surface, and containing two of the rarer heavy rare earths.
Previously independent metallurgical studies have indicated a low cost, heap leach processing path is possible.
Not a bad one for the bottom drawer, considering RDM also has silver optionality through its 53% ownership of MMA.

Held
Holding

 

[finicky]

RDM smashed upon a SPP announcement for a 10c subscription price to raise $2m b4 costs.
It's not underwritten and RDM have a good rep with shareholders for showing reluctance to dilute.
Therefore I'll likely subscribe as it is priced at only 1c above my entry.
It's just more definitional drilling at Sybella but they imply that should put them in a position to discuss the rare earths project with end users. Sybella is what caused the excitement and share price rise in early 2024 - https://www.aussiestockforums.com/threads/rdm-red-metal.7732/page-2
Separately, there's a vertical concept hole they want to drill into a bullseye gravitational 'signature' that is similar to that of Oak Dam (second screenshot). This is situated about 150kms to the north of Ernest Henry in a similar structural setting. Hoping for a copper-gold porphry discovery.

Held

 

[finicky]

Today subscribed $2,000 to the 10c SPP

Held
Holding, but trade a few if it spikes some time

 

[finicky]

Up 13% today. Maiden MRE released for the Sybella REO project. Hopefully will retain enough lift to benefit the extended SPP offer @ 10c.

Held
Holding