Why is RXM capped at only $130 if they have the biggest copper...

Why is RXM capped at only $130 if they have the biggest copper mine in Australia?? Two reasons, the mine is only a hundred metres from the Great Ocean on the York Peninsular. The ore body cuts through the main highway.

There is no infrastructure or rail near it. They have no water supply. Maintaining an opencut with the great ocean leaking in every day would cost millions in keeping the water out. Having a hazardous tailings dam put within 10 klms of the ocean will never happen, especially in SA.

THE REQUIRED WATER SUPPLY FOR A 15 MILLION TONNE A YEAR COPPER FLOATATON PROCESS PLANT IS 42,000 TONNE OF WATER PER DAY, OR 1736 TONNE OF WATER PER HOUR. BREAK THAT DOWN INTO LITRES: 42,000,000 (42million) litres per day or 1,760,000 litres per hour. Where is SA going to get this sort of water?

RXM are dreaming if they think for one moment that they can get this amount of water 365 days of the year. The Greeny’s haven’t even arrived yet but when they and the Department of Environmental and their Greenies arrive it will be a nightmare to say the least. It will have more tents than an Indian Reservation. Even operating near a river is taboo these days without being parked next to the Great Southern Ocean which leads to the Antarctic and park a mining operation 100m away. That’s why RXM is capped at $130m and being the largest copper mine in Australia. Also don’t know how RXM came up with a reserve without a DFS??? This is a new on to do that. 0.60% Copper is worth $48 a tonne at $8,000 a tonne for copper.

Take all the above into account and now you know why RXM is capped at $130m. Everyone in the industry knows that this is a dreamer’s project because of its location next to the ocean and in SA where there is no water and no infrastructure. OZL wouldn't even give it a first glance let alone a second. Moreover no-one will look at it until they move the ocean... End of story. $130m market cap is even over the odds.


This is my view taking all into account. I am not an expert, but these are the facts, happy to listen.