RNX - Renegade Exploration

[exgeo]

If you're a straw hats in winter kind of guy, this ought to be worth a look. At 30th June 2009 the company had AU$ 1.68m in the bank and expect to spend AU$ 100k in the next quarter. There appears to be potential for depth and strike extensions with more drilling. No mention in the latest quarterly that more drilling is going to be undertaken in the following quarter. As they only expect to spend AU$ 100k in the next quarter, one would guess not.

On 12th May 2008 the company signed a strategic agreement with Glencore. They also raised AU$ 10m at 50c a share (20m new shares) to the normal institutional and sophisticated investors. Glencore became a substantial shareholder in the company and will work toward finalising offtake agreements for the lead and zinc concentrates produced for life of mine (no announcements that this was ever completed though). Glencore also got a board seat.

Comparison of Prairie Downs Metals and OVR.
PDZ has nearly twice the grade but a small resource. Both open-pittable. Both stable mining-friendly jurisdictions. PDZ also has channel iron-ore potential, one reason for the difference in market cap's I'd guess.

Market cap. (ordinary shares, undiluted)
OVR 74m shares @ 7.1c = AU$ 5.25m
PDZ 73m shares @ 25c = AU$ 18.25m

Resource
OVR 8.9MT @ 7.5% Zn+Pb
PDZ 1.6MT @ 16% Zn+Pb plus 36g/t Silver

 

[Red Fatboy]

Exgeo,do you have any ideas why the market acted so unfavourably after the announcement made concerning their north american drilling results, sending the share price from 15c down to current levels? Were the results much worse than expected or an overreaction from the market? Interested in reading your thoughts on the matter.

 

[exgeo]

I can think of several reasons why the sp fell since the announcements in May and June 2009.

1) The metal prices used in the recent economic evaluation were above the prevailing spot LME Pb + Zn prices. At the metals prices at the time of the economic evaluation it seems the project would be only marginal.

2) The stock is very illiquid and the liquidity generated by the announcements was perhaps used to get out of the stock by many people who had been holding from much higher levels, for tax loss purposes etc.

3) The company didn't indicate that they are going to be doing more drilling in the near future, and the flow of exploration results and expanding resources is one of the main drivers of share price in these junior exploration stocks.

However the stock is not valued much more than a shell company, with very little factored in for the value of the project, exploration upside etc. I think long-term patience will be rewarded once drilling starts again, metal prices continue to recover and so on.

 

[Red Fatboy]

Thanks for answering my queries exgeo. Your theories certainly sound plausible. I am a holder of this stock and do hope that in time it comes to realise its sp potential. Cheers.

 

[exgeo]

If it makes you feel any better, I've been a holder since 50c and rode it down. Did manage to trade out in May at 13c and buy back at 8c again, so got some of the loss back there, but anyway there doesn't seem to be much downside left at least. Now only 2 directions left; sideways or up!

 

[UBIQUITOUS]

This stock is currently being rerated and deservedly so.

It peaked at $1.10, but has now moved upto 13c on record volume from a 8c base.

I place a valuation of about 25cent-40cents based on the following:

1.They have a JORC compliant resource of 9m tonnes at 6.25%/lb Zinc.
2. Zinc prices are strengthening.
3. Market cap at 13c - $14million
4. Glencor paid 50c per share and own about 20% of the company
5. The also have gold projects
6. Projects have no sovereign risk - In Canada
7. No debt
8. About $6m in cash
9. Management also run Avoco (AVB)- and see their results and the deal they struck with Vale.

 

[kpas]

This stock is currently being rerated and deservedly so.

It peaked at $1.10, but has now moved upto 13c on record volume from a 8c base.

I place a valuation of about 25cent-40cents based on the following:

1.They have a JORC compliant resource of 9m tonnes at 6.25%/lb Zinc.
2. Zinc prices are strengthening.
3. Market cap at 13c - $14million
4. Glencor paid 50c per share and own about 20% of the company
5. The also have gold projects
6. Projects have no sovereign risk - In Canada
7. No debt
8. About $6m in cash
9. Management also run Avoco (AVB)- and see their results and the deal they struck with Vale.

JORC upgrade due any day now.

Should be a very interesting market reaction if it is a decent upgrade.

Even if it isnt, the market may rerate OVR on their current level of development alone.

Gotta remember that the project is definitely bankable - they are moving into the final stages of feasibility and within 12 months this company will be very close (if not already in) to production.

 

[exberliner1]

Strange to read my posts on this one at the beginning of this thread - we all had such high hopes for OVR back then - AU$1.76 as a minimum I wrote.

And now...

3 1/2 years later still not very much seems to have progressed.

That's what a GFC does to the corporate plans ... shreads them into pieces.

I must admit I sold out of this one after seeing the sell depth build back in 2007 thinking I would get back in a bit cheaper but never did.

I agree with recent posters however - it is seriously undervalued and maybe worth buying again.

After all you could argue I have been short OVR for the last 3 1/2 years.

The Zinc hasn't gone away all thats changed is the share price and US$/AU$ rate.

EB

 

[kpas]

Strange to read my posts on this one at the beginning of this thread - we all had such high hopes for OVR back then - AU$1.76 as a minimum I wrote.

And now...

3 1/2 years later still not very much seems to have progressed.

That's what a GFC does to the corporate plans ... shreads them into pieces.

I must admit I sold out of this one after seeing the sell depth build back in 2007 thinking I would get back in a bit cheaper but never did.

I agree with recent posters however - it is seriously undervalued and maybe worth buying again.

After all you could argue I have been short OVR for the last 3 1/2 years.

The Zinc hasn't gone away all thats changed is the share price and US$/AU$ rate.

EB

Don't really agree that nothing has happened in the 3.5 years - project is very well advanced and within it's final stages of development.

Like I said before, another 12 months time and it will be a completely different company.

The resource is big enough now to have a mine life and as they continue to drill it can only get bigger.

And it's under $40 market cap now - ridiculous for a company of this level of development!

 

[exberliner1]

Agreed Kpas ....I should have put that differently.

Still OVR is now a proud member of my watchlist and I have a feeling it won't be long before it joins my speccy portfolio.

I liked it 3 1/2 years ago at 40c - 50c so at the current SP and with developments since then I have got to like it a lot today.

About time I closed that inadvertent short

Be happy

EB

 

[kpas]

No brainer for me....alas I didn't notice it until lunch time but picked up a good pile of OVR between 40 and 50c....

With Zinc results like that even at $1 it is only a $30mn company....also don't forget the other projects...decent CU results as well...

17mn shares quoted and about 32mn in total....

So imo there is at least 35c upward momentum to look forward to tomorrow....with that much zinc and a massive share price hike today it will get overnight press comment which will push it higher tomorrow...

Just a shame there are no OVRO quoted...

EB

It is interesting that the number of shares on issue has changed significantly since you posted.

By a factor of 4 ?

Also, still no OVRO - I too like to leverage the heads against options when available. Surprised no publically listed options are available.

 

[kpas]

This stock will be over $1 within the next 4weeks-6weeks.

Drilling has been underway at the andrews project in canada, resource upgrade sure to follow.........has been heavily accumulated from around 60cents where the recent placement was made.

Good mid-long term hold with good possibility it will go to mine stage (open pit too).

One of the better performers i am expecting in my portfolio over the next few months.

cheers.

I would say even this post is still very relevant!

Keeping in mind the dilution though, the current share price is the same as what it ran to 3.5 years ago.

Project has been significantly developed since then & the resource significantly increased.

So I still think it's got a lot of upside left in it and as they move closer and closer to the mining studys being finished we should see the share price appreciate accordingly.

I'm on for a long term hold - I want to see it into production.

 

[kpas]

Agreed Kpas ....I should have put that differently.

Still OVR is now a proud member of my watchlist and I have a feeling it won't be long before it joins my speccy portfolio.

I liked it 3 1/2 years ago at 40c - 50c so at the current SP and with developments since then I have got to like it a lot today.

About time I closed that inadvertent short

Be happy

EB

Not sure if anyone else is on this stock but last little while has seen some increase in the average volume and resultant from the lack of liquidity, a sharp increase in the share price.

If it can stay above it's recent (November 2010) high of 40c then it could well be in for a significant breakout.

Current market cap (undiluted) sits around 42 or 43m.

Still no sign of the alluded to update to their JORC estimate which going by their previous quarterlys statements has a good chance of an increase. All the previously announced drill results were ending in mineralisation and looked very positive.

Will have to wait and see what happens over the coming months.

 

[Rhodes]

I'm in this one kpas.

Must admit I was a little disappointed with the price action after the JORC upgrade. I guess news of the cap raising got out before the anouncement. Just my thoughts.

It'll be interesting to see what terms Hugh can swing for us. There is some speculation that the trading halt and delayed anouncement is management trying to negotiate better terms with the upgraded JORC. I don't know but am waiting to see.

 

[asteroider]

New top20 shareholder in recent S.I. placement Dominet Digital.
Any thoughts on what is coming or anyone have experience with these guys? Upside or downside?

 

[System]

On May 4th, 2018, Overland Resources Limited (OVR) changed its name and ASX code to Renegade Exploration Limited (RNX).

 

[frugal.rock]

Might be worthy of a dust off ?

 

[frugal.rock]

Chart update.

 

[greggles]

This is a straight up casino punt. RNX has spiked from 0.006c to 0.018c in the last two weeks and I'm hoping May will see more share price gains. But knowing my luck it will more than likely tank big time.

 

[rcw1]

Good morning
News Corp media article:

Finger of God points to Renegade Exploration’s Cloncurry copper whopper hopes

There are high hopes for a huge hand-shaped underground iron oxide copper-gold system near Cloncurry that has been likened to the nearby Ernest Henry mine
Glen Norris
October 14, 2024 - 10:20PM

The finger of God is pointing to the northwest mining town of Cloncurry.
Not in a divine intervention sense exactly, but a huge hand-shaped underground iron oxide copper-gold system that has been likened to the nearby Ernest Henry mine.

Renegade Exploration, the company keen to unlock the potential value of the area, held an investor lunch at Tattersalls last week where exploration manager Edward Fry explained that the deposit when digitally mapped resembled a hand with a finger pointing to the township. “That’s why we call it the finger of God,” said Fry as he handed around pieces of rock core from recent drilling to guests at the lunch.

Renegade chairman Robert Kirtlan says the company is preparing to drill new areas of the exploration site this month to nail down what is actually underground.

Kirtlan is quietly optimistic. “There’s not many people that look at this little area here and don’t think that there’s something there,” says Kirtlan. “Now that doesn’t mean there is, but it’s been a question mark for probably the past 100 years.”

Earlier this year Renegade identified what it called a very large magnetic anomaly at its Cloncurry project. Kirtlan at the time said the prospect was a potential lookalike for the Ernest Henry Mine, a major nearby producer of gold and copper. Copper is currently experiencing a strong rally with many pundits predicting the metal is headed for a price spurt over the next two years, as demand increases due to the world’s green energy transition.

Kirtlan also let it slip that a couple of juicy mango trees have been found on the prospect, which have helped quench the thirst of the drilling team as they went about their business.

One investor at the lunch quipped that “as well as good results from the drilling, I hope a couple of boxes of mangoes might be thrown in as well.”

Not holding

Kind regards
rcw1