RMX - Red Mountain Mining

[barney]

ps. Only held a small amount of these and decided to cash them in at .012 Took a small loss due to my poor entry a while back

Good luck to anyone still in.

 

[frugal.rock]

You still holding @frugal.rock ?

Yes.
Won't be selling in a hurry. Not doing anything in a hurry anymore....

This morning's gap up open price is about where I entered, so am waiting waiting.
If I can endure the drawdowns, I can wait for decent profits!
Market speculating about something?
A wait and see job.
Willing to wait months for a proper pay day. My target is 4 cent so will take a while and will need a bunch of good news ?

 

[barney]

Yes.
Won't be selling in a hurry. Not doing anything in a hurry anymore....

Yeah, good luck with it. There is plenty to like about its prospects.

I was hesitant to sell when it looks like the boat might be leaking a bit of news, but I need to cull a few of my "smalls" off the ledger.

Lets hope they have hit something substantial at Mt Maitland to give the SP a boost.

 

[frugal.rock]

ASX announcement
13/7/21

Maitland South Diamond Drilling Completed

• Drilling intersects the prospective Maitland South Shear Zone

• 14.65m wide zone of alteration, veining and sulphide - prospective for gold mineralisation

• Drilling program now complete at Maitland with assay results due over coming 3-6 weeks.


By my calendar, it's at the 3 week mark today, or thereabouts.
Hopefully the zone mentioned contains some good gold grades.
Paydirt or flaydirt?

 

[frugal.rock]

Drilling results must be imminent going by the calendar. It's around the start of week 5 of the 3 - 6 week window.
Noticed a discrete pickup of volume today and it closed up with someone happy to pay up.

? Fingers crossed on results. Have been holding for a while....

 

[barney]

Noticed a discrete pickup of volume today

Thanks for the follow up FR. Interesting up-day as you say.

 

[barney]

Follow up @frugal.rock

"Interesting" sometimes = a decision.

Could be right could be wrong, but nothing ventured, nothing gained at this end of the Market. Order in.

To be honest, I expect an upcoming cap raise Ann sometime soon, but that (doesn't) mean it's (not) time to accumulate

My order should be filled on Open tomorrow.

NB. IF the Sell side becomes over saturated before the Open, I may adjust the Order, but will say so for the sake of credibility

 

[frugal.rock]

My order should be filled on Open tomorrow.

Was wondering out of interest @barney does commsec orders go on the market at 7am?
I ask as Westpac orders don't go through until after 8am, despite pre-open being from 7am.

(A little annoying when you occasionally want to be first, or close to first in a buying queue/position)

Good luck with the trade if you do buy.
SP needs to get to 0.012 for me to break even with a little profit. Average in is around 0.0115 for me. Getting past the 1 cent mark will probably be a hurdle.

Rare earths are pumping again as I know your aware of, so if we're lucky enough to get a good news announcement this week, it may be a "strike while the irons hot" scenario. ?

The 3 - 6 weeks window stated for results seems to be on the low end of time frames for assay labs at the moment though.
Labs have been busy taking up to 3 months lately, but I guess they got that timeframe figure directly from the assay office?

 

[barney]

Was wondering out of interest @barney does commsec orders go on the market at 7am?
I ask as Westpac orders don't go through until after 8am, despite pre-open being from 7am.

(A little annoying when you occasionally want to be first, or close to first in a buying queue/position)

Not too sure to be honest about the order queue/time etc.

Had a closer look at yesterday's price action and my initial enthusiasm has waned a little since the pre-open orders are not showing much interest.

Most of yesterdays trades were in the 008-009 cross zone with the higher finish a little fabricated on lower Volume

There is a lot of Supply sitting at 010 so I'll drop that order for the moment. Unfortunately out most of the day so can't watch price action if something does develop.

I already did some dough on this one but I hope it bounces on your behalf. At least CAD finally decided to behave for you

 

[charlsie]

can someone explain to me if the recent notice for the proposal to list options that will mature in 2022 will have any bearing on the share price?
I noticed the other day the listing in the afternoon after the market had closed and that my little alarm icon on commbank didn't show it the next day.....it seemed a little sneaky. Any ideas?

 

[frugal.rock]

can someone explain to me if the recent notice for the proposal to list options that will mature in 2022 will have any bearing on the share price?
I noticed the other day the listing in the afternoon after the market had closed and that my little alarm icon on commbank didn't show it the next day.....it seemed a little sneaky. Any ideas?

I'm also interested to understand any SP implications by this, I don't claim to understand options apart from the bare basics.

I don't think there's anything sneaky about timing?

I got an alert and email about it, as every stock when bought gets alerts, setup by me. Only non market sensitive announcements aren't notified, annoying because these often do affect the SP!

Hoping they find a concentrated bunch of rare earth soon...

 

[DaveTrade]

can someone explain to me if the recent notice for the proposal to list options that will mature in 2022 will have any bearing on the share price?

Hi Guys, options don't have any bearing on the share price, in actual fact it's the share price, the volatility and time that determine the option price. Some traders want to use long dated options for their trading strategy so this will only help those traders.

 

[barney]

can someone explain to me if the recent notice for the proposal to list options that will mature in 2022 will have any bearing on the share price?
I noticed the other day the listing in the afternoon after the market had closed and that my little alarm icon on commbank didn't show it the next day.....it seemed a little sneaky. Any ideas?

Been off the air substantially of late and only just noticed your post @charlsie

Used to own RMX so still have a passing interest in their progress. Regarding the Option "deal" ...

My following assessment is after a very quick glance at the details, so anyone reading, please fact check etc etc. as I could be incorrect


1) They had Options expiring in July 2021 which were going to expire worthless (given the exercise price was above the current Share Price)

2) They offered a Free (1 for 3) option for anyone who exercised their "soon to be worthless" options , if they Exercised their current Options.


This is smart business by Management! (in my view)

They have bought themselves a little extra time with their current campaign to produce the goods so to speak


ie. If you exercised your current Options (which were "in the red") you gained an extra Option with a longer dated expiry

This gave you a better than break even cost with additional time! (Win /win in the short term. Longer term unknown)


So in effect, (IF YOU BELIEVE IN THE COMPANY) Two things have eventuated:-


a) You have given the Company some additional liquidity/cashflow (By exercising your Options)

b) You have now extended your Option ownership time frame till October 2022 which gives the Share Price more time to appreciate.


My obvious take away question ...

Who out of the large/medium Share Holders took up their allotment to "Exercise"??

Therein tells the tale of the (shorter term) tape

 

[Dona Ferentes]

I see the long dated options issued by companies are generally done to lock in the possibility to bring on board a bit of extra capital down the line, and somewhat cheaper than having to go to market (again) by way of another Rights Issue, a placement and / or a SPP (with all the attendant costs - can be 5-10% leakage of the capital raised.)

Generally seems only to be a mechanism exercised by early days minnow mining companies; and when you look at the tenement / resources / reserves / JORC pathway, it makes some sense. If the early promise comes true, then there can be an increasing SP and so the earlier locked in price can be an attractive to participants of the earlier cap raise.

Of course, they can prove to not be attractive, and expire (= not exercised). Or traded (usually at a discount). Generally, the other effect of company issued options on a share price is to dampen the trading on the head stock (because more stock is slated to come on board down the line).
.
.

can someone explain to me if the recent notice for the proposal to list options that will mature in 2022 will have any bearing on the share price?
I noticed the other day the listing in the afternoon after the market had closed and that my little alarm icon on commbank didn't show it the next day.....it seemed a little sneaky. Any ideas?

and then I decided to have a look at what @charlsie mentioned. It is there in Commsec Announcements with a Red ! by the way.

As announced by the Company on:
(a) 8 June 2021, the Company has agreed to offer one free (1) Bonus Option for every three (3) of the Company’s listed options which were:
(i) then on issue; and (ii) exercised by holders in accordance with their terms (Exercised Options) prior to their expiry. The ASX code for the Exercised Options was RMXOI; and
(b) 19 July 2021, the Company had received $791,974 via the exercise of 98,989,196 Exercised Options.
The remaining RMXOI options (being an aggregate of 39,653,661 RMXOI options) lapsed on 14 July 2021 unexercised.
Accordingly, the Company hereby agrees to issue an aggregate of 32,996,399 free Bonus Options to all parties who exercised their Exercised Options (Eligible Recipients), on the basis of one free (1) Bonus Option for every three (3) Exercised Options.

This Prospectus is being issued primarily to ensure that the Bonus Options issued by this Prospectus to the Eligible Recipients and the Related Parties satisfy the requirements to enable those Bonus Options to be freely traded on ASX from the date of issue. This Prospectus will be distributed only to Eligible Recipients (refer to Section 3.1). NO PERSON SHOULD SUBSCRIBE FOR BONUS OPTIONS UNDER THIS PROSPECTUS UNLESS DIRECTED TO DO SO BY THE COMPANY

 

[barney]

I see the long dated options issued by companies are generally done to lock in the possibility to bring on board a bit of extra capital down the line, and somewhat cheaper than having to go to market (again) by way of another Rights Issue, a placement and / or a SPP

This looks a little different I think DF

The Co. realised the Options in question were going to expire worthless, and therefore

Deferred the expiry of the Options by offering a "time" advantage to current holders (1 for 3)

This gave a cash advantage to the Co. by "enticing" current holders to "exercise"

The S/H's who exercised under these conditions may give a good indication of the health of the Co's short term prospects

Given the reasonable amount of S/H interest .... Definitely back on my watchlist

 

[frugal.rock]

Thanks for the responses people's.
I now feel informed. ?

Given the reasonable amount of S/H interest .... Definitely back on my watchlist

FWIW, Market depth has slowly been moving the right way the last few days, selling on the 0.009 figure has waned to the point where we might see some buyers of $0.01
Still got fingers crossed for a decent rare earths find and a galloping SP on this speccie exploratory junior..?

 

[barney]

FWIW, Market depth has slowly been moving the right way the last few days, selling on the 0.009 figure has waned to the point where we might see some buyers of $0.01

Hope so Rock. Its had trouble gaining any traction since the big move late last year. Not sure why.

Market Cap ~ $13 million ish Cash on hand ~ Little under $2 million Definitely room to move

 

[charlsie]

Thanks for the responses people's.
I now feel informed. ?

I'm with frugal, thanks to all for the explanations

 

[frugal.rock]

FWIW, Market depth has slowly been moving the right way the last few days

A significant step made yesterday, breaking out of the easing mellay of the $0.009 selling.

For now, we have decent volume sitting ready to buy at the $0.009 level.
Buying at the $0.01 mark commenced late yesterday, and it was noted that buying wiped all existing supply at $0.01 level.

It remains to be seen if supply at that level will appear.
I expect it will, unless a single entity has been fiddling the sub 1 cent level.
No doubt a few weak hands will exit though, perhaps providing a buying opportunity.

Mr @rnr has suggested that my trading method appears to be similar to Wyckoff methods in regards to "tape reading".
I feel I should study up on Wyckhoff as it would no doubt improve my method, or at least help me understand it.

To the chart. It looks very barcoding I would agree, however in conjunction with order flow, it has moved in a positive direction.
It remains to be seen whether that positive flow continues and will most likely be subdued without catalyst.

Stocks such as SYA, LPD, IXR, GLA, PDI, FAU etc were all "barcodes" or "festering cankers" at one point in time and I have been scoffed ? at for even suggesting these stocks...

Some minor FA study may be the key and financial metrics haven't generally been considered but is a wise move.(at least the last quarterly...)

There is no doubt these stocks were high risk, however the risk reward ratio can be astounding to say the least. Sound risk and trade management is a key requirement for these stocks otherwise you will get bitten...

I've got bite marks all over me but have managed to keep a +63.6% return over the last 14 months.
It got as high as ~110% in that period, but have succumbed to bite marks for not adhering to trade plans, risk management and not taking profit at appropriate levels.
Hard lessons learnt and greed can freeze subjective analysis.

To do list

Wyckoff Theory and Wyckoff Method - A most reliable trading theory

Wyckoff method and Wyckoff Theory - one of the most trusted theories in trading. These timeless concepts continue to educate traders even 100 years later.

the5ers.com

 

[frugal.rock]

ASX ANNOUNCEMENT
RED MOUNTAIN MINING LTD 20th September 2021

Mt Mansbridge Update

• Recent target definition site visit has allowed completion of drill planning for multiple REE,
Nickel-Copper-Cobalt-PGE targets

• Rock chips assays returned confirming REE mineralisation at multiple prospects

• Heritage survey rescheduled for end of September with RC drill rig secured for October