RFR (ASX) Ann: Rafaella Completes oversubscribed $4.25m Private Placement

Originally posted by setfire2thehive: ↑

I was asking about stocks with 5-10 times return in a 2year period. Although I was sent about 20 to review i can usually sniff out a decent play within 5mins to warrant an initial entry. My general rule is if i can't interpret the story, value creation and upside potential within that timeframe then i'm not intersted. Usual just small % of folio.

From there now the capital is on the line forces me to do further DD which can often take months before i get totally comfortable. Irrespectively, it either needs to be early exploration and usually under 30M MC or near term production/late development with any MC but atleast 5-10 upside from NPV/studies etc etc.

A few things that would turn me away.
-Low cash (means CR is coming usually would wait to try and participate or buy at that base)
-Hot sector. No point buying the commodity that is currently running wild as you may be late to the party (tungsten/tin still haven't fully been appreciated)
-Greenfield exploration. It's generally a lottery and massive upside but can park cash for long time with no return.
-high capex. Even if the NPV/IRR is good. Capital funding is hard. Easier to ask for a smaller amount for a smaller profit. Project with 1bn capex can sit idle for 5years plus. More likely to get a 50m-100m project over the line.

there's probably a few others but just seems to have the signs I look for with no current red flags. There's near term news relating to the resource and dfs which are market sugar hits but then underpinned by a fast-tracked production profile i.e sept this year. Meaning could be cashflow positive later this year.

Based on that little money earner i was probably already in, but secondary project for exploration upside provides another little kicker. I don't like companies with 12 projects. If you're a small cap you generally don't have the capital to burn exploring 8 different things. Better of having 1/2 core focus's and sure maybe try earn in's on the others but when i read 20 pages in investor presentation for 10 projects it's like really? Why am I buying. I see no strategy. No focus. Just omit them or keep it to one slide with some footnotes as to why they're even worth keeping.

Anyways, long winded way of saying i was tagged on twitter. Couple of individuals with similar current holdings also in here so no surprise to see some familiar faces.

tungsten similar to REO in the sense that highly dominated by China. Sound investing is investing in what china is investing in. Worked for IO 10 years ago, lithium 5 years ago, rare earths 2 years ago. Expecting copper/nickel/tungsten/tin to be fairly topical over the next couple year.

*sentiment buy reflecting actions today. Still parked in the depth for more.

SF2TH

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great response thnx