Toli Toli Molybdenum Project
1. World class Molybdenum deposit known as Toli Toli.
2. Located on the Central West Coast Sulawesi, Indonesia.
3. Discovery made in 1970's by Rio.
4. Santos farmed-in 1980.
5. Resource was calculated at [email protected]%Mo (after
adjusting for known assay errors)
6. Rio held the opinion that it would easily exceed 200Mt
at the same grade.
7. The average grade of Toli Toli is the equal third
highest grade in the world and is double the grade of
Moly Metals (ASX:MOL) deposit.
8. The jewel in the crown is Toli Toli's rare ultra high
grade core of [email protected]%M. Only two other projects in
the world has grade that can match this. Its enough to
last the first 7 years of production.
9. The project will be mostly open pit, will be able to
generate power (1/3 of operating costs) from hydro and
is close to natural harbour.
10.EBITDA for project at current Mo price would be about
$US850Million per year.
11.Value of metal in ground is $9Billion at 100Mt and
$18Billion for $200Mt.
12.Deposit may contain Rhenium as well which wasn't able to
be assayed back in 1980 due to lack of technology.
Rhenium comes only from Moly deposits and sells for an
astounding $US10,000lb and if its in this deposit would
add several hundred million to its value.
13.Strong support from Sulawesi government (they were down
in Perth last week to visit company).
14.RCH is actively looking for a early JV deal - Likely
suspects are Japanese steel mill (maybe Nippon)
15.Moly use is exploding and the price has climbed from
$US3 to $US34lb over past 7 years. Its called the metal
of the 21st century. Its now becoming a strategic metal
so much so that the Chinese (worlds second biggest
producers)have recently restricted exports and imposed
a tariff on it to deter exports.
16.We know there is a big buyer in market looking to buy
$10M worth of stock (strong rumour that is).
17.With a $90M fully diluted market cap, its is
rediculously cheap relative to its metal value.
18.Needs 40 diamond holes to take it to JORC.
19.Top notch management team. Deal doers who are extremely
well connected.
20.Canadians will come in after this big order is filled
is the rumour.
21.The rumoured Canadian player is most likely to be the
Sprott Molly Fund, the only Moly Fund in the world and
which invests in Moly Stocks and the metal itself. The
Fund is about $200M in size.
Quite simply, it must go up due to the fact that the market cap equates to only 0.5% of it likely current metal in the ground value.
Its current fair value in its present undeveloped state is probably 10 - 20 cents. Its long term vale is $1.40+ according to my valuation calculations based on a 9Mt p.a. size plant and current Moly price.
RCH
richfield group limited
if you are fretting then read and re read this
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