I've had a multi bagger before in Reservoir Minerals (TSX:RMC). Copper gold explorer in the Timok belt of Serbia exploring near the massive producing Bor copper gold mine. Invested £1000 in a company called Resevoir Capital in about 2011 who held the exploration rights. They did an IPO/ demerger to create Reservoir Minerals Corp (RMC), offering shares at C$0.60 with an attached warrant per share at C$0.90. Bought 10,000 shares initially and put them in the bottom drawer. 6 mnths later they hit a bonanza drill,160mts at 10.16 copper equivalent. https://www.mining.com/reservoir-minerals-drills-160-metres-grading-10-16-copper-equivalent-stock-soars-51682/ Long story short they kept striking more and more and it was the biggest copper strike of the century with a massive high grade sulphide deposit surrounded by a porphry averaging above 2% copper. https://www.mining.com/reservoir-minerals-drills-266-metres-grading-1-23-copper-equivalent-at-timok-project/ They went into a JV with Freeport McMoran who held 54% of the lower porphyry under the JV while RMC 100% of the higher grade high sulphide deposit halong with other drill targets on a number of their properties, and expected also to strike more deposits adjacent this strike.
Took up the options/ warrants at $0.90 so ended up with 20,000 shares at avge C$0.75
Went to a bidding war between various parties over a 2-3 year period while they kept infill drilling, eventually being bought out by Nevsun in Resources in 2016 for $365 million based on 2 NEV shares (@$3.50) per RMC share plus $2 cash per share ($9/share equivalent = $180,000 ).
Stayed in NEV and took a dividend for a couple of years and got some SP appreciation.
Eventually the Chinese won out with Zijin buying out NEV for $1.4billion, worked out at $6/ share.
I had sold a few over the years but if I'd held all20k shares that would have worked out 40,000 NEV shares a t$6 = $240,000. Not bad for a $15,000 stake, plus dividends for a year.
Ths story goes on after the Zijin sale. In Dec 2019 they also bought out Freeports share of the lower zone at $240 million for its stake in the lower zone of the Timok copper-gold mine, plus 0.4% of the net sales proceeds once production begins, up to an aggregate maximum amount of $150 million. Not been following any more but the mine is probably technically worth another 50% now.
My bet for the next 100bagger is one of the two energy companies below
QFI (LSE) Quadrise Fuels International - looking to introduce emusion fuel to disrupt the HFO market, target markets are maritime HFO fuel, power stations, steam generators. Burns cleaner and cheaper than HFO and at a discount. Pre-commecial still with no cashflow, but at £0.03/share if they go commercial could be huge. Current target customers are Saudi power stations, maritime fuel, Equador (refineries and power) Mexico (reffineries and oil), Morocco (Industrial heat - trial on hold due Covid), Utah Uintah Basin Oil Shale Sands (trial due in Q42020 target is on site energy use, shipment of butumen and eventual local end users). If they can land Utah and unlock the currently uneconomical shale sand extraction and/ or the Saudi power market they could easily go past £5 in the next 3- 5 years. https://www.quadrisefuels.com/
TOM (LSE) Tomco Energy - these guys are part of the joint venture QFI have signed up to in Utah via a new company called Greenfields with Valkor a large US ESC. Greenfields have a licence for use of tech patented by a company called Petroteq who have a patented green extraction method for oil sand extraction that leaves only clean sand as a by product. But it's not competitive due additive/ energy/ transport costs. Bolting the Quadrise emulsification process on the end can make it competitive. Greenfields have the righst to this tech in Utah and looking to build multi 10,000 BOPD sites acorss Utah if the trial is successful. They have rights to millions of barrels below ground but will be looking for multiple near surface deposits to secure. There a billions of barrels of uneconical oil sands in Utah, and hige deposits elsewhere in the world too. If they demonstrate this they will have oil companies in Utah queuing up for use of this licencing and they will go through the roof from their current sub £0.01p price.
The petroteq extraction works, just needs to be scaled. The QFI emulsification of the extracted heavy waxy bitumen is easy. We know that will work. They need to prove teh scalability from current 300-500 BOPD Petroteq site to a 10,000BOPD facility. https://petroteq.energy/
Quite fancy the case of wine, but guess I will have to pay for the shipping to London?
IPT Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
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