I know market sentiment is shot but I cannot understand the lack of interest in RCI at present! The following makes this company an absolute no-brainer and one of the screaming bargains on the ASX at the moment:
1. Steady income stream of over $1m per month from it's China coking operation which is scheduled to ramp up production by over 300%.
2. Coal gas offtake agreement signed recently with major Chinese ceramics manufacturer.
3. Premium coking coal tenements adjacent to infrastructure in Qld's Bowen Basin with resource base currently at 280+ million tonnes (with massive exploration upside still to come).
4. Currently undertaking intensive drilling program on several tenements with decision pending on PFS for Hillalong (open cut operation) to proceed to early mine status.
5. Over 80% of shares currently held by top 20.
The cash flow and exploration upside are absolute standouts for mine in light of the current difficulties for small spec explorers to secure funding. RCI will without doubt be able to self fund all development activities (without dilution) while other companies projects will be mothballed. It compares favourably to other coal juniors such as COK and BWN in terms of resource quality and should be considered a bargain at anything under 20c. JORC definition should also result in a significant re-rating for this exceedingly undervalued coal play.
I know market sentiment is shot but I cannot understand the lack...
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