RXM (ASX) Ann: CEO's AGM Presentation to Shareholders

Originally posted by Jongerd: ↑

"For a profitable mine you need the geology (which Rex has) and the Finance and ability to develop, which Rex is clearly lacking."

Being one of those who are still "anchored" (to Rex) these comments worry me. Coming from an industry insider I wonder if many comments on this forum (including mine) have been influenced by "anchorage" and aided and abetted by a vision somewhat blurred by rose colored spectacles?

If we9smia reads this he might comment on a recent announcement from Nevada Copper "New US copper mine opens for first time in a decade". The Pumpkin Hollow mine seems to be similar in characteristics to Hillside in that it has both underground and open cut potential. There seems similar reserves, at least in CuEq, even for the underground mine which has started production.

Of more interest is the Pumpkin Hollow open cut proposal which is of similar size to Hillside and is deemed both feasible and has "potential" financing through partnering with the KfW IPEX bank.

I note that the feasibility is based on a 0.5% CuEq over the life of the open cut mine
- is not Hillside open cut, without Fe, still around 0.8% CuEq?

Pumpkin Hollow has an Initial Capital Cost of $US672M
- Hillside ICC is US$360M.

Pumpkin Hollow has a C1 cost of US$1.73
- Hillside's C1 cost is US$1.61

The above cost figures may need comment from someone with some expertise but to an ordinary punter it would seem that Hillside prospects significantly outshine Pumpkin Hollow's. All we need is a PEPR!

Also of interest was the Nevada Copper announcement page heading "TRACK RECORD OF DELIVERING ON SCHEDULE"
- perhaps a sentiment that "anchored on" Rex shareholders who seem to be being kept in the dark on reasons for PEPR delays might look forward to from Rex board and management?
- I live in hope.

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Hey Jongerd - happy to respond, sorry for the delay however I dont follow the forum much because I no longer hold any stock.
I did a site visit over Christmas Holidays, lots of old core in the field all stacked up, a few water tanks and clearly no onsite activity at all for quite some time.
I dont really want to comment on other copper projects in the USA, I will say that I believe that the Copper is in the ground at Hillside - however we have a lack of management skill to get Finance and to get into production.

You understand the Anchor - so I wont give you any advice on that - other than to say that I will review getting back into this stock when there is a significant variation (to now - most likely management change \ takeover).

You will not be pleased with the following.

Hog Ranch was purchased by WMC when I was working at Olympic Dam as a Geologist. It was an unmitigated disaster - The Exploration Dept Roy Woodall etal were not involved with the purchase, I believe that the core was salted (gold added to make it look better than it was). In production there was less gold in the resource - it did not leach well due to clay (same as Nifty Copper run by WMC which was really rich in copper but would not leach - did two years there too).

For Rex to have purchased this nailed it for me that they may very well not know what they are doing (just my opinion).
Being rusted on means that you are losing time on this stock - and that is costing you money, and I dont see a path to any Alpha being generated in the next 2 years.

Good luck to the holders - the copper is there and it will be a good operation once it gets up and running.