Hi guys, in addition to news being imminent on the second Malawi lease we should also be hearing news from the U testing at Mt Alfred soon. And Scottle raised another good point yesterday that Red Rock Resources had also done work on the NT leases from which, much like Mt Alfred we might inherit some news. That comes from the following passage from the Red Rock Announcement:
During the year geophysical interpretation and limited sampling was carried out on the Company?s uranium licences in the Northern Territory, and initial exploration was carried out at the Company?s Mt Alfred uranium-iron ore licence.
As I see it we definitely have two announcements one being the second Malawi Lease and the other being U testing from Mt Alfred. But we also have the possibility of a curve ball from the NT where we have both iron ore and gold potential. Now I have heard a lot of posters stating that RSL has no Jorcs or drill results yet but can I remind everyone that is why we are a spec stock at a meager 2.5c with a very small market cap.
If we had Jorcs etc we would not be sitting at 2.5c with our current market cap. That is why the Malawi Leases are so important. They are not just another lease they are in fact tangible assets that add to the value of RSL. The main reason I say that is firstly, just look at how prospective they are and secondly not being in Australia they can actually be mined without the silly restrictions we have here.
In fact if you do want to undertake U mining Malawi is one of the areas you would want to get into. These leases are a major asset to RSL. We saw SP run to 3.4c in anticipation of the grant of these leases and the subsequent fall in my view was the markets disappointment over only one lease being granted. Now until a lease is granted there is nothing tangible for the market to value a Co on but the good news is the second lease is imminent.
When that second lease is granted I really cannot see how RSL does not deserve a market cap of 20 million (SP 4c a share) and as it draws near my suspicion is we will see another run up in SP. We already saw a run up to 3.4c on nothing but the sniff of the leases the day before. The other factor that everyone should take into account is Ian Scott. I don’t care how much potential a Co has without good management a Co has nothing.
And let’s face it can anyone find another 2.5c Co with the same market cap and similar management – if you can let me know because I will start buying. The big question is why did Ian Scott who could write his own ticket sign on with RSL? The answer to me is money thru an increasing share price. And being no fool and understanding uranium very well it would make sense that he looked over the Malawi Leases and the Australian leases and saw just that – money!!!
Don’t forget that spec stocks trade on news. With at least two announcements around the corner SP won’t stay at 2.5c for long. RSL has very little built into its share price hence the small market cap and like all spec stocks will run hard on positive news. As we have major news in the form of the Malawi Lease around the corner I would not like to get caught napping hoping for a cheaper 2 point entry – good luck to holders.
SRT Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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