RTR - Rumble Resources

[brerwallabi]

Hopefully todays drop to 17 cents on a bit of increased volume is just tax loss selling.

 

[brerwallabi]

My thinking is that 16.5/17cents is the bottom..
The US is heading upwards and small cap stocks are on the rise there.
Once this tax loss selling is over we might follow the lead of the US.
I do have some spare cash from a few stocks sold notably K2F and CR9 so another slice of RTR is a distinct possibility next week.

 

[greggles]

I bet those investors who stumped up 50c a share back in April 2021 when RTR raised $40 million are feeling pretty dirty right now. A savvy move by management to load up on cash at those levels but that cash is now close to running out.

Does RTR have any surprises in store before the inevitable CR is announced? Perhaps the 700m deep EIS funded diamond drill hole which
aims to intersect high grade MVT type mineralisation associated with the Chikamin Feeder Fault?

 

[brerwallabi]

I think this is a viable company in the long term.
They have a significant project.
They will need cash before year end hopefully news now will drive the share price upward not downward which seemed to be the case this year.
The recent selling has dropped off the last few days, the bottom seems to be in at 16.
I have not added anymore just in case management decide to go for cash at a discount to present lows.
Will pick it in the monthly comp.

 

[greggles]

The first five drill holes at the Sweetwater trend have returned zinc-lead mineralisation. The area has now been named "Mato Prospect". Visual identification is one thing but the full results is what is important here. But the news that mineralisation has been intersected is encouraging nonetheless.

The diamond drill hole at Chinook West has been completed and "intersected further unconformity related Zn-Pb mineralisation" but again we need the full lab results to understand what and how much has been intersected.

Interesting that RTR's tenement holding in Earaheedy has increased 170% to 1154km2. Definitely a good idea given the scale of the project.

 

[brerwallabi]

Interesting, potential for economic base metal mineralization at this new Mato prospect.
More good news, positive announcement and the share price does almost nothing.

 

[finicky]

Zinc and Lead are unexciting metals. Needs something else to glam it up - like Silver

 

[greggles]

Interesting, potential for economic base metal mineralization at this new Mato prospect.
More good news, positive announcement and the share price does almost nothing.

The zinc price has not had a good 2023. Lead has performed better but it is in no way looking bullish. Too many macro headwinds for RTR to make significant share price gains at present. Management is between a rock and a hard place. Not much they can at the moment but keep drilling the most likely targets and keep their fingers crossed.

 

[greggles]

RTR in a trading halt this morning pending an announcement regarding a capital raising. Very disappointing that it had to happen this year given the current share price, but I would guess that management don't see a share price catalyst in the short term and would rather do it now than later.

I also suspect that the CR will be a relatively modest one as raising too much capital around 17c would be a mistake if you could raise more at a higher share price in a year's time.

 

[finicky]

Checked out STK? Next door to Rumble, has a zinc project but a distinguishing feature is the recent sale of gold resource to NST which will fund it for years. Tenements are close to NST's Jundee ops and mill. Today announced a 40,000m aircore drill program and at least one of the targets is another gold project to conceivably flog off to NST. I don't know why I'm not buying it.

RTR and STK not held

 

[brerwallabi]

Explains why they pushed it down so the big boys get another slice of the pie cheap.
I am sure I will finally make some money on this looks like I might have to 2024\2025.

 

[brerwallabi]

Why so cheap?
At 13.5cents a whooping over 20% VWAP.
I am tempted 3 million available to current shareholders.
Instos and sophisticated get 11million.
Can see a dump coming from some parties.
Not to worry it’s a very viable project.

 

[greggles]

Why so cheap?
At 13.5cents a whooping over 20% VWAP.
I am tempted 3 million available to current shareholders.
Instos and sophisticated get 11million.
Can see a dump coming from some parties.
Not to worry it’s a very viable project.

13.5c is a little surprising. They would have gotten it away at 14.5c or even 15c IMO. Still, at least they only raised $11 million. They should now have enough cash until 2025 although I think today we will see some share price dumps as the impatient exit what is a very frustrating stock.

 

[Sean K]

Why so cheap?
At 13.5cents a whooping over 20% VWAP.
I am tempted 3 million available to current shareholders.
Instos and sophisticated get 11million.
Can see a dump coming from some parties.
Not to worry it’s a very viable project.

13.5c is a little surprising. They would have gotten it away at 14.5c or even 15c IMO. Still, at least they only raised $11 million. They should now have enough cash until 2025 although I think today we will see some share price dumps as the impatient exit what is a very frustrating stock.

Over 20% is nuts. It's actually against ASX rules.

The Company has applied to ASX for a waiver of Listing Rules 7.1 and 10.11 to permit the SPP to be undertaken at a discount greater than 20% of the 5-day VWAP. If the waivers are not granted, the SPP will be conditional on shareholder approval.

 

[greggles]

$18+ billion worth of base metal mineralisation in the ground and the market cap might be under $100 million shortly. Unbelievable.

 

[brerwallabi]

Well they certainly know how to crash a share price.
Haven’t seen this amount of volume for a while looks like some want out.
Or is the instos playing us.

 

[Sean K]

This price is obviously all they could get or they are incompetent negotiators. Having a footy player as the MD might not help.

But, have to ask about the quality of the deposit in the opinion of the debt providers. They must have some queries. Huge tonnage and close to surface, open pit, but low grade. Something wrong with the met? They've claimed they can make a 'highly marketable concentrate', but maybe that's not good enough. The Zn conc from met testing was about 60%. I've got no idea how that rates for Zn but it's a long way to haul it to a port from here..

I've said this before but they need those 'feeder zones' above 5% to grow or find more of them for starter pits.

The World resource map they keep putting up shows it's going to be giant, but there's not many deposits at this lower grade.

 

[greggles]

$40 million was raised in April 2021 at 50c a share. So they have burnt through an average of a million and a half a month since then. That's a lot of money to spend on drilling holes in the dirt. Perhaps they need to take a more restrained and focused approach to capital management until they have found all the feeder zones and drilled them.

They have achieved a lot in the last two years but there is still quite a bit more to do. I hope they make this $11 million count.

 

[Sean K]

This is back to where it took off in April 21. That was on the back of an ann regarding drilling on 'battery metals targets' at Wardawarra...

 

[greggles]

This is back to where it took off in April 21. That was on the back of an ann regarding drilling on 'battery metals targets' at Wardawarra...

View attachment 161122

So, was it overvalued in April 2021 or undervalued now? It's almost a completely different company given what the drilling has uncovered since then. Management should be embarrassed for no other reason than they have failed to get the market excited about what they have at Earaheedy. They thought the drill bit would do the talking for them, but it hasn't.

What is required now is laser like focus on hitting the most prospective targets and selling the company's story. They need vision, something that has been sorely lacking and lost in the nuts and bolts of exploration activity.