Insiders continue to accumulate

We see no selling by any of the major shareholders...and in fact both Tony Poli(former executive chairman of Aquila Resources) and Josh Pitt (our Chairman and largest shareholder) are accumulating more shares at current levels.

It's not hard to reason why, when one considers that on top of the $200m already paid by Mineral Resources (MRL), that company has already commenced development of its Ashburton Hub for which RHI's resources are the central plank. After MRL's sale of its Pilbara Minerals stake ($300m+), it committed funds towards its capital expenditure program which includes $69m this financial year to developing Ashburton.

Of course, when the first shipment occurs, another $200m flows to RHI(approx $$3.30 per share before tax) and the 1% royalty commences. Even after tax, and depending on your own tax situation you may receive a tax credit through the franked dividend, the receipts received and in prospect total around $310m after tax ($5+ per share) plus the royalty of maybe $20m pa. In addition there is the possible net revenue from the Pannawonica project which could be circa $500m before costs over a period of a few years. Obviously MRL is in the box seat to provide the mining services to RHI if that is to proceed. All that suggests a total value for RHI of $10 per share is possible.

Finally, with the WPIOJV partners including Boasteel, Posco and AMCI set to receive a fat dividend from their holding in RHI, their subsidiary companies that are the participants in WPIOJV and also shareholders in RHI are potentially fully funded to contribute their share of capex to the development. I expect that this has all been orchestrated by Chris Ellison/MRL to make it all happen to his timetable. At least that is what I am hoping.

All imho and for discussion purposes only. Please dyor.

regards
DF