RHM - Richmond Mining

[Bigukraine]

That would be in breach of ASX listing rules re continuous disclosure about news material to the share price.

Weather delayed the drilling campaign so news has simply been pushed back. Nothing more sinister than that IMO.

Your right about the breach of ASX listing rules and the continuous disclosure so the qrtly or results will be known soon and about "nothing more sinister than that" i believe that the shareholders in AIW and LAT would take exception to that comment. It's very sinister what has been done to them by their board members of whom 3 of them are on the RHM board..... upon doing some reserch i have found similar traits re lack of ANN ..... i've got a bit in RHM and hope these guys make a better account of themselves in this company for all our sakes

 

[JimBob]

Results from Narracoota haven't uncovered any significant areas of Copper/Gold mineralisation although one drill hole is being sent back to the lab for further analysis. They havent stated whether further drilling is planned on the other conductors identified in the VTEM survey.

The companies main focus now appears to be the Buena Vista Iron Ore project in the US.

There has been strong support for the share price at 18-19c following weeks of little volume leading up to the quarterly report. A lot of punters would have been looking for the door following disappointing Narracoota results, but Buena Vista looks promising at this stage. I think hopes of short term gains are well and truly out the window and this has turned into a longer term hold.

 

[Bigukraine]

Results from Narracoota haven't uncovered any significant areas of Copper/Gold mineralisation although one drill hole is being sent back to the lab for further analysis. They havent stated whether further drilling is planned on the other conductors identified in the VTEM survey.

The companies main focus now appears to be the Buena Vista Iron Ore project in the US.

There has been strong support for the share price at 18-19c following weeks of little volume leading up to the quarterly report. A lot of punters would have been looking for the door following disappointing Narracoota results, but Buena Vista looks promising at this stage. I think hopes of short term gains are well and truly out the window and this has turned into a longer term hold.

Jimbob,

i'm one of the punters that bailed and your right that BV seems to be where they want to head..... only problem with that is dilution re a cap raise or placement is on the cards due to only $2.1m on hand and the likleyhood of the Dec 2010 oppies @ .20c exercise price not getting over the line.....

May 2011 the first payment ,a mix of cash and shares to the owner is due so would like to know where the money is going to come from.....

Narra Ann was the killer for me, a great prospective ground and they go into it like a kid poking a stick down a old ant nest hole !!!!!!

only air drill holes done very shallow and missed two drill areas because of inaccessability.... you think they would know that before they went out there....

Also of concern is like you said no forward statement on a drill plan for Narra.... it is common knowlage that the other plays around and including Sandfires (SFR) grounds you have to go deeper with diamond drilling and that is how they hit there zones of mineralisation......

Add this to what i have said re BV and you can see how my faith in the RHM has in the imortal words like Elvis....... "left the building".....

 

[JimBob]

Richmond Mining up 21.6% to 22.5c on above average volume today. There are also some big buy orders sitting at 19-20c. Unexpected action for me, not sure if this is just a nearology price rise due to good results released from THX or for some other reason.

 

[noie]

Richmond Mining up 21.6% to 22.5c on above average volume today. There are also some big buy orders sitting at 19-20c. Unexpected action for me, not sure if this is just a nearology price rise due to good results released from THX or for some other reason.

It seems this is off the back of a company related to the director acquiring another 40,000 (just 7K worth) shares adding to its 2,664,732
and, a reasonable quarterly balance sheet
471834 traded today, right up to close (SP + 21%)

 

[JimBob]

RHM up another 9% today on large turnover of over 1.1 million - there are only 33 million shares on issue.

The next few days will be interesting to see if there is news due, a substantial holder notice is issued or if the price rise and buying continues.

 

[JimBob]

Boardroom Radio Broadcast released recently:

brr.com.au/event/67558

Highlights:
They have a possible gold target at Narracoota around Drill Hole NRC5. The other holes tested VTEM conductors while this hole was drilled at the intersection of two structural trends. More detailed assay analysis is being done on this drill hole as well as soil sampling around the drill hole area to confirm a gold resource target.

The focus in the next quarter is on the initial economic analysis of the Buena Vista Iron Ore project in the US. While most of the deposit is lower grade magnetite (20-40%), they have drilled a few areas of higher grade (50-60%).
CML Metals have begun shipment of 600,000T of Iron Ore to China from their mine which is three times the rail distance to port as is Richmond's deposit.

 

[JimBob]

A detailed report on Richmond's Buena Vista Iron Ore project has been released by Veritas Securities and available on Richmond's website:

http://www.richmondmining.com/wp-content/uploads/Veritas-Securities-Research_29-July-2010.pdf

They give a price target of 60c and a valuation of $2.42 (current share price 26c). First production is estimated for late 2011/early 2012 with a capital start up cost of $50 million. Production is estimated at 2Mtpa with earnings of around $1 per share.

A pre-feasibility study is due out in September with a full feasibility study due out in December. The start up cost is low compared to similar projects in Australia and it has good access to existing infrastructure.

 

[craigj]

thanks for the link JIM bob

the report on the value of the iron ore is impressive
the amount of research already undertaken before RHM on Buena vista is in dollar value, triple RHMs current market cap

no wonder the share price has been rising lately

 

[jonojpsg]

They give a price target of 60c and a valuation of $2.42 (current share price 26c). First production is estimated for late 2011/early 2012 with a capital start up cost of $50 million. Production is estimated at 2Mtpa with earnings of around $1 per share.

Interestingly that target price gives an MC very similar to a couple of other IO producers/near producers at the 2MTpa rate (IFE and TTY). I guess that around $80-$100m MC is a quite reasonable target - if they make $40/tonne that gives them $80m pa which is only a PE of 1 so very conservative.

 

[JimBob]

Richmond has been holding well at the 30c mark, still waiting on the pre-feasibility report which is due out soon.

The Buena Vista has a number of positives - on private land in a mining friendly state means less delays than similar Australian projects. Native title and state government permitting issues can drag on for years. The low capital start up costs removes much of the funding risk. There is also likely to be more uncertainty in Australia over the mining tax in the short term which makes overseas projects look more attractive.

 

[lbarks]

What a day, up 20%!! is this the breakout we have all been waiting for?? its a very thin ask list as i assume alot of people are waiting on the Beuna Vista pre feas results and not letting go of these too easily!

 

[craigj]

the chart is looking very strong lately and following the rising trend line

volume lightened off a bit as we wait for results

 

[JimBob]

After the 20% rise a week or so ago, there has been good consolodation around the 35-36c level, which was the previous high. The price has touched 37.5c before dropping back a little. If the 35c level can hold, then we are looking good for further gains.

 

[JimBob]

Richmond Mining has been having a great run lately, touched a new high of 41c today before closing at 38.5c.

The Pre-feasibility report for Buena Vista is due out shortly which should give a better idea of the economics of the project, Veritas securities have a short term target of 60c so there is still good upside in the short term and if Richmond can achieve initial production at the end of 2011 or start of 2012, then Veritas value of $2.40 is a good possibility considering the low number of shares on issue. Current market cap (undiluted) is about $13 million.

 

[craigj]

the consolidation at this level has been great first target is 43.5 cents with such alow market cap there are few willing to sell lately

 

[JimBob]

In the annual report, they state that they are looking at a range of option for Buena Vista, ranging from a 1.25-1.5MT per annum of magnetite ranging through to 3-4MT per annum. Given that the Veritas valuation of $2.40 is based on a 2MT operation, there may be quite a bit of upside to this valuation if a higher production rate is achieved.

Share price still doing well, closed on a new high of 42c on friday.

 

[craigj]

positive metallurgy results released today
the iron ore tests show that it is of a high quality
this removes some of the risk

do some research because this is now a very cheap iron ore play in the US
most of the groundwork has already been done by previous owner

RHM market cap 13 mill. shares on issue 33 mill.

such a play has potential to become a multi bagger

also still has drilling for copper in de grussa area near Sandfire

 

[Sean K]

positive metallurgy results released today
the iron ore tests show that it is of a high quality
this removes some of the risk

do some research because this is now a very cheap iron ore play in the US
most of the groundwork has already been done by previous owner

RHM market cap 13 mill. shares on issue 33 mill.

such a play has potential to become a multi bagger

also still has drilling for copper in de grussa area near Sandfire

I don't know where to start with asking you questions about this stock that you know so much about, except, can you fill in te details please and I might check it out.

 

[jonojpsg]

I don't know where to start with asking you questions about this stock that you know so much about, except, can you fill in te details please and I might check it out.

Hey kennas, can help craig out a bit there

RHM have around 100MT of magnetite at BV, which is low for mag but the grades range up to quite high values, around 58% I think? Metallurgy shows a two stage grind and two stage wet mag sep gives a 68% conc with OK SiO2 and Al2O3 which is pretty good and a lot less hassle than conventional mag ore.

They are looking at starting up with the high grade core section which will give them quicker cash flow, don't know costs to set up plant but it appears to be a goer. Obviously need more details but definitely at $13m would seem to be cheap.