RMI - Resource Mining Corporation

KIWIKARLOS said:

If there is a credit crunch (im not betting on it) these types of companies will be the first to fizzle.

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zhang9288 said:

Looking forward to news.

RMI is holding up niceley after yesterdays run.

With a little good news we should see a return to 10cents hopefully.

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skiper said:

Zhang, spoke to the office lady who openly told me there was news coming out Friday, when i quized her she said about the Nickel of course, which may explain some of the buying over the last couple of days:sheep: Watch them all flock back:

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YOUNG_TRADER said:

Guys sorry it took me so long to get this done, but have been trying to trade while researching/typing etc etc

RMI​

Mkt Structure

Shares
430m
Mkt Cap @ 7c = $30m Current
Mkt Cap @ 15c = $65m Target 1
Mkt Cap @ 20c = $86m Target 2

TOP 20 = 52%
Substantial Shareholders
Sinom (Hong Kon Stell/Iron ore Insto Group) 13.4%
ANZ 8.4%
Mount Gibson Iron MGX 7.4%


Cash
$2m not alot so will obviously need more down the track


Projects



Wowo Gap Nickel, 100%, PNG
120mT@1.2%Ni + 0.1%Co = 1.7%Ni Equiv

Note that my research on Wowo Gap has found that based on all the historical work, the PNG government is confident to quote a JORC of
300Mt@1.6%Ni Equiv

Valuation
As its a laterite Project I'd say once the JORC is firmed up a $1000/t EV is appropriate (Note Spot $35k - $50k/t)

For now until we recieve assays and confirmation of the mineralisation I will use $100/t Ni EV

120Mt@1.7%Ni Equiv = 2Mt+ Ni @ $100 = $200m = 47c RMI

Now the mian points are
1. Although the current JORC has a low confidence level, detailed research of PNG databases has revealed a JORC of 300Mt@1.6%Ni Equiv is being quoted, so there is plenty of upside to the jorc, this in turn has greatly increased my confidence in the project.

2. Given the huge technical and infrastructure costs, a JV with a major is a must! = Farming out/down of interest, but see HIG, they sold a majority stake in Ramu (145Mt@1.5%Ni Equiv) to the Chinese so a JV partner shouldn't be a problem


Blackstone/Michael Hills Ni/Cu/PGE/PGM, 25% Free Carried by RDS, Musgrave Province W.A.
The project is 30Km's away from WMC's Babel and Nebo Nickel Sulphide deposits,

While its early stages, Patersons are highly encouraged by the work so far and belive that RDS/RMI are onto something quite promising here

Valuation
I like Patersons fully agree that the bulk of RDS's current mkt cap is attributable to these projects,
Hence a comparative valuation can be made

RDS 90m shares @ $1.40 = $26m for 75% Interest

Thus RMI's 25% Interst is worth $42m = 9-10c approx RMI


Argyle Iron, 75%, W.A. near Wyndham
JORC 17Mt@55%Fe

Unfortuantely this deposit is somewhat stranded and RMI will need to show a clearer path to development before I will value it properly,

However apparantly their has been strong Chinese interest in a potential JV, once one appears I will re value this project

Valuation
As stated, due to development uncertainty the project only deserves an EV of $2.50/t vs $5/t I was happy to use for CUL's

17Mt@55%Fe = 9.35Mt, 75% Interest = Net 7Mt's Fe
7Mt's Fe @ $2.50/t = $17.5m = 4c RMI

If a chinese JV or clearer path to development appears I will be happy to use $5/t = 8c RMI




Qld 3 Rivers Ni/Cu, 10% Free Carried by SRL, Greenvale Qld
SRL should have drilled 3 deep holes to test for NI/Cu sulphides, not sure where this project is at



Summary

- WOWO could be a company making project, remember JRV's run? 400% in a month based on its huge laterite Nickel Project
- The RDS JV underwrites/implies an SP of 9c-10c
- The Argyle Iron Ore Project adds 4c in spec value (8c once I see JV etc)


Total Value I see pre Wowo Gap rerating = 23c
After more confidence in Wowo = 40c+

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prawn_86 said:

im not sure of the specifics as i havnt rang the company, but a wowo announcement is well overdue, even taking into account the delay they mentioned in their quarterly

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tibby said:

Hi Guys....I was told last Monday that an announcement would be due regarding WOWO project "nearing the end of the week" I have since been informed by Julie Hill via email that they are planning to ..........."release an announcement early this week which provide an update on the exploration progress at the Wowo Gap project"

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INORE said:

thanks for the follow up tibby...Is Julie Hill a director? Lets hope its a positive announcement.........

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