could rmi be the multi bagger of 2011? , page-4

could RMI be a multi bagger in 2011? (long reading)

it all depends on the feasibility/global market that affects the level of interest in Wowo.


Seeking interest by RMI
"RMC continues to seek interest from variety of parties for joint exploration activity at Wowo Gap. " (March qtrly)


Independent study on feasiblity
"An analysis of the fundamental economics provides support for the conclusion that the project is economic using the forecast price of US$19,400 per tonne nickel, US$58,200 per tonne cobalt, and a USD/AUD exchange rate of 0.8. The financial model yields an internal rate of return of 16% with a net present value of US$270 million (10% discount rate)." - (independent study)



Outlook for nickel
"In 2009, roughly 1.28 million metric tons of nickel was produced globally, a figure which the International Nickel Study Group (INSG) forecasts to increase by 12.5% for this year, up to 1.44 million metric tonnes.

A good 65% of that nickel goes into making stainless steel (other alloys consume another 22%, while electroplating and chemical applications use up the remaining 8% and 5%, respectively). But the global economic downturn hasn't been kind to stainless steel producers or its users. As the economy weakened and struggled to recover, so too did all sources of nickel demand, and falling prices forced mining companies around the world to cutback or stop production.

In addition, the downturn meant that companies making finished stainless steel goods preferred to use up their existing company stockpiles, rather than purchase additional nickel in the market. In turn, this caused nickel stockpiles to grow, because the reduced amount of nickel still being mined was still more than needed. Much of the excess ended up in stockpiles in the latter half of 2008 and on into 2009.

But 2010, with its falling global stockpiles and rising prices, has demonstrated a different trend, and stainless steel demand is expected to grow. Forecasts from the International Stainless Steel Forum predict stainless steel demand to continue to increase through 2010:

China is expected to lead this demand recovery, as the country managed to grow its stainless steel output in 2009 by 26.8% year-over-year, even as global stainless steel production dropped 5.25%. Bonnie Liu, an analyst with Macquarie Bank Research is told Purchasing.com:

?China has been leading the recovery of the global stainless steel industry since the beginning of the year. Some major (stainless) steel mills in China are saying they cannot fufill their customers? order book requirements for the next quarter due to the stronger demand from the domestic market, especially from the machinery, industrial and auto industries.?

Rising nickel prices ? combined with positive economic data, such as increased consumer spending ? have encouraged nickel producers worldwide to begin re-opening their mines. One such nickel mine in Zambia, moth-balled since the prices dropped in 2008/09, resumed output on March 26." (http://www.kitco.com/ind/Crigger/apr012010A.html)





of cos any sort of Joint venture or MOU in Wowo will significantly re rate SP northwards and be a great multi bagger and we all hope it does too.

as a holder, i'm looking to viewing Blackstone results as RMI still have a 10% uncontributing interest and also hearing from the coy regarding the infill drillings/results to further assess and increase? the reserves at Wowo.


notice the increase of interest in RMI of late due to the very large (and yet unexplained) volume recently. 18million buy and more by someone makes this interesting. r u buying more Godsbroker?