RTR - Rumble Resources

[peter2]

Doesn't matter how much there is, lead and zinc aren't sexy enough. They're just base metals.

 

[greggles]

Doesn't matter how much there is, lead and zinc aren't sexy enough. They're just base metals.

Base metals get sexier when their prices start to increase. When will that happen? Well, that's the million dollar question.

Let's look at zinc. LME stocks have decreased from 320,000 Tons in April 2021 to 40,000 now. The price is currently depressed due to macro concerns, but as things start to turn around demand should improve.

As for lead, it is up from US$0.80/lb two months ago to around US$1/lb today. Let's see where is goes from here but it will largely depend on global macro factors. Obviously those in mining stocks for longer than a short term trade likely believe that most of the bad news has been priced into base metals already. That could be completely wrong, but it could just as easily be right.

Time, as always, will tell.

 

[Sean K]

Zn is on the US critical minerals list, so while unsexy, it seems important. Maybe it'll get sexy when those LME stocks run out. I wonder who mines hafnium?

 

[brerwallabi]

I don’t have much time on my hands at the moment I am picking Rumble in the 2023 stock picking comp, just based on some semi promising results. I don’t think they will turn up another Telfer, but something viable.
Plus the share price has tumbled rather crashed, I had shares in this before so hoping it will rebound

 

[Sean K]

I don’t have much time on my hands at the moment I am picking Rumble in the 2023 stock picking comp, just based on some semi promising results. I don’t think they will turn up another Telfer, but something viable.
Plus the share price has tumbled rather crashed, I had shares in this before so hoping it will rebound

They need to bring out an MRE with mass tonnage for the overall grades they are getting, with some high grade sections for starter pits. When you look at the dimensions on their resource cartoons, they probably already have it but they're on a go-slow with doing an MRE. I suspect it's because they're geologists and ex footy players and have no interest in mining it. Seems like they're mining the market.

 

[brerwallabi]

They need to bring out an MRE with mass tonnage for the overall grades they are getting, with some high grade sections for starter pits. When you look at the dimensions on their resource cartoons, they probably already have it but they're on a go-slow with doing an MRE. I suspect it's because they're geologists and ex footy players and have no interest in mining it. Seems like they're mining the market.

Hope we get an estimate in this now current quarter.
At 20 odd cents it can’t drop any lower in my thinking unless the whole market crashes.
A lot of good news 2022, but excuse my interpretation of it being a LEAD balloon.

 

[peter2]

It's about time that this old base metal dog sat up and barked for its shareholders.
Was under consideration for the monthly comp.

 

[Sean K]

They've been distracted by finding some traces of Cu and Ag in last drill results reported in November. While interesting, the intersections are so minor it shouldn't mean they take their eyes off the immediate prize which is Zn/Pb. I wish they'd just focus on getting an initial MRE out on the Zn/Pb to give the market an idea of the scale. They've done enough for an inferred MRE on this patch already, IMO. It's 4km x 1km ish, FFS, with significant tonnage in the 5-8% Zn blocks. But, 'MRE due in 2023' sounds like the end of the year to me.

 

[brerwallabi]

It's about time that this old base metal dog sat up and barked for its shareholders.
Was under consideration for the monthly comp.

My pick in the yearly comp, sooner or later they will get their act together and hopefully the share price recovers, I can’t see why not.
My hopes were for a estimate this current quarter I might be a bit too optimistic.

 

[peter2]

Got the timing right this time on RTR as price has rallied off the low.
Hit initial target today at 0.275. Next target is 0.32 then 0.37. Anticipating lots of resistance at 0.40.

 

[Sean K]

Got the timing right this time on RTR as price has rallied off the low.
Hit initial target today at 0.275. Next target is 0.32 then 0.37. Anticipating lots of resistance at 0.40.

Good timing. I think this has coincided with zinc seemingly making a bottom and then higher highs and lows. 3500 might equate to 32c.

 

[peter2]

Good observation. I was draw to RTR recently because of the recent uptick in demand for most metals including base metals. I'll keep an eye on Zn in regards to RTR price movement. RTR won't go to my higher targets without a corresponding rise in base metal prices.

 

[greggles]

RTR news flow has slowed to a trickle recently. Nothing substantial from Earaheedy in a couple of months. Surely some drilling results from Tonka can't be far away?

It's frustrating when a company with dwindling cash reserves appears to take their eye off the ball. Or perhaps I'm not fully understanding their current strategy? Whatever the case, I think they need to improve their communication so the market understands what they hope to achieve before the next CR becomes necessary. To have to raise capital at ~25c would be very disappointing, but RTR can't seem to get back over 30c since dipping below that level in early October 2022.

Some focus would be nice.

 

[Sean K]

RTR news flow has slowed to a trickle recently. Nothing substantial from Earaheedy in a couple of months. Surely some drilling results from Tonka can't be far away?

It's frustrating when a company with dwindling cash reserves appears to take their eye off the ball. Or perhaps I'm not fully understanding their current strategy? Whatever the case, I think they need to improve their communication so the market understands what they hope to achieve before the next CR becomes necessary. To have to raise capital at ~25c would be very disappointing, but RTR can't seem to get back over 30c since dipping below that level in early October 2022.

Some focus would be nice.

At least there's an MRE planned. Not sure what scale they need for this to be of importance. If they come in around their ramped 'giant' category with a further exploration target of 'super giant', then it could be re-rated significantly.

Contained Zn-Pb on their current exploration target would be about 3.5-4.5Mt which at current Zn spot price of about $3400 a ton = $12b + value in the ground. It's all recoverable too due to the type of flat lying deposit close to surface.

They could have easily done an inferred MRE with the amount of drilling to date and even a PEA/PFS to give at an NPV.

 

[greggles]

At least there's an MRE planned. Not sure what scale they need for this to be of importance. If they come in around their ramped 'giant' category with a further exploration target of 'super giant', then it could be re-rated significantly.

Contained Zn-Pb on their current exploration target would be about 3.5-4.5Mt which at current Zn spot price of about $3400 a ton = $12b + value in the ground. It's all recoverable too due to the type of flat lying deposit close to surface.

They could have easily done an inferred MRE with the amount of drilling to date and even a PEA/PFS to give at an NPV.


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I agree with you about RTR's potential. I think ultimately there will be a lot more than $12 billion under the ground at Earaheedy, but their "high calibre team" needs to start developing a laser like focus. They had $13 million in cash at the end of the September quarter but by their own admission they only had around 2.5 quarters of cash left at that point. They have a high cash burn rate, so they will be looking for at least $25 million at the next CR which will almost certainly happen by the end of March. That gives then a couple of months to pull something impressive out of the bag.

The market needs to be able to visualise RTR's future in order for the share price to gain any traction. But that vision remains muddy in my opinion and the lack of news flow recently doesn't help. Clarity, vision, and goal kicking is what management needs to focus on right now with a CR not too far away.

BTW, I said "early October" in my last post but I misread the chart. I should have said "mid-June".

 

[peter2]

Got the timing right this time on RTR as price has rallied off the low.

Damn, not enough follow through buying and sold today at entry price. 0.22 to 0.27 and back to 0.22. Exasperating isn't it.

Edit: This happens whenever I try to act like an investor. The market always trips up the "wannabes".

 

[Sean K]

Now they're saying the initial MRE is first half of 2023. Wish they'd make up their mind.

It's going to have to be something close to their rampy exploration target for Mr Market to be happy.

From the RIU Conf.

 

[greggles]

Now they're saying the initial MRE is first half of 2023. Wish they'd make up their mind.

It's going to have to be something close to their rampy exploration target for Mr Market to be happy.

I think they are hoping to get the share price moving north faster and have brought the MRE forward for that reason. To have to raise capital at current prices would be extremely unfortunate. I am sure RTR management see the company as being undervalued at ~$130 million and want the market to sit up and take notice.

 

[greggles]

Aside from yesterday's RIU Explorers Conference Company Presentation, news has been a bit thin on the ground recently. My understanding is that they have been keeping the drill bit busy, so perhaps we will hear something soon.

 

[brerwallabi]

Aside from yesterday's RIU Explorers Conference Company Presentation, news has been a bit thin on the ground recently. My understanding is that they have been keeping the drill bit busy, so perhaps we will hear something soon.

Let’s hope so, a 52 week low is quite worrying, maybe it’s being pushed down so certain you know who will get a capital raising at a discount to 20 cents?