fundamentals of rex

First of all, congratulations to all who have held Rex for a while. I'm sure you're pretty happy with the huge gains they've made.

A mate asked me to do a bit of research on Rex and in doing so I've become very interested myself and just wish I entered earlier.

Below is my initial research and I would really appreciate it if anyone could correct or discuss anything important that I may have missed. I'm sure there's a mistke or two in there but I've tried to give a solid, unbiased summary of their prospects.

Cheers and good luck to all holders!
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Mate I did a bit of research on Rex. Still wouldn't mind doing some more on the geology but here's what I like:

Management: with smallcap companies, great mgmt + average resource is better than shite mgmt + good resource. Rex seem to have both! Most of their board used to hold positions with WMC Mining, which is a South Australian institution in the mining industry. I ran into a guy from HS who worked as an accountant out in the bush with WMC. He loved it. WMC were taken over by Xstrata several years ago.

The ore structure looks good on the maps and if all goes well there could be a huge amount of reasonably high grade copper along a nice long strike distance (60kms). This means there's the potential to have continual announcements come to market, as they shore up a growing JORC resource. This will give the market that "wow!" factor, as expectations build. There are pockets of very high grade copper within the resource, which only adds icing to the cake!

The N.S.W. resource is nothing to sneeze at either, although it is definitely not the flagship tenement to the company. The ore grades are very high however and there's a small gold resource. Both of these resources could be fast-tracked to market as costs will be far lower than the S.A. project, meaning they will have $ trickling in to fund their exploration and JORC development. This should mean less necessity to go back to market and raise funds. Their current cash position is excellent after the raising and with a market cap of only $160M it's still conservatively prices based on upside potential.

Shipping and transport is another big plus for Rex as costs will be minimal and existing port and infrastructure is close-by.

As for corporate activity, once the exploration risk is further mitigated via an actual JORC resource, there is definitely the potential for a takeover. What Chinese company wouldn't like to get their hands on a large scale resource of reasonably high-grade copper? A company close to Rex, Lincoln Minerals, are currently in a similar predicament and although their resource is smaller and has less potential, there are currently several Chinese parties analysing drill samples. Takeover or shipping agreement? Who knows.

Lastly, I LOVE the fact that mgmt own 11% of shares on issue with additional unlisted options. One of my pet hates with smallcap comanies is that mgmt often pay themselves a large salary/fee and hold few shares. This sends the wrong signal to investors and demonstrates their lack of faith in the business. Rex directors have taken the opposite stance. They are bullish, without ramping and spinning to market, they know how do develop a successful company and they are putting their hard earned on the line to make themselves super wealthy, although they already are, since the company's gone from 12c-$2.50 inside 12 months.