If you believe on betting on the jockey, not the horse I think RCR is worthy of your attention
The same team behind Tesoro Resources (10x since IPO in February this year) is behind RCR.
Interestingly, the assets were almost sold to Artemis in July 2019
do not advertise external links.au/companies/news/314099/artemis-signs-binding-agreement-to-acquire-100-of-rincon-resources-14099.htmlYou can look on ASX announcements from last year what Artemis was saying about the assets.
The deal, for whatever reason, did not materialize so RCR decided to go for a proper IPO almost 18 months later.
If one looks at the company presentation
https://www.rinconresources.com.au/wp-content/uploads/2020/11/Rincon-Resources-IPO-Presentation-JORC.pdfyou see how this company is surrounded in the Telfer by industry giants:
- Rio Tinto
- Newcrest
- Greatland Gold
Especially, this last one has re-rated +/-1,100% this year on their Havieron project which is very close to RCR's assets.
Being close to large miners does not mean you are guaranteed to have success but RCR's assets in Telfer were owned by Newcrest before and they at least spent 5-10M AUD in drilling on it already. Those old drilling data might be very useful for RCR to re-analyse and use going forward. Newcrest is starved for more "gold" for its Telfer processing plant (hence their buy-in deal with Greatland Gold) this might also mean that IF Rincon is successful in finding anything of size in their Telfer owned area this could be interesting for Newcrest.
The IPO price at +/-10M AUD seems rather low given the optionality here. RCR also has two other assets in Laverton and Kiwirrkurra. Not much is known about those assets and they could be complete duds.
If anything, RCR is a play on the Telfer area they own being as prospective as Greatland or Newcrest. It is still three weeks away from trading but will maybe try to get some shares here...
Sentiment:None
Position: Not Held
Because company is still private so hard to make a judgment call until the 10th of December when it actually lists.
