RDM 2.78% 17.5¢ red metal limited

Yes, after posting that article I was starting to feel a bit...

  1. 2,918 Posts.
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    Yes, after posting that article I was starting to feel a bit apprehensive. RDM discovering rare earths and controlling 53% of Maronan is a recipe for disaster for shareholders of both companies.

    A hostile takeover of RDM at say $100M tomorrow (double your money overnight) would be very attractive to a good percentage of shareholders, who would say thank you and move on to the next stock.

    Maronan with silver at US$40 which has a better than 50% probability of occurring in 2024 would have to be valued at $3. The Maronan resource is 30% larger than SVL's resource when measured on inground value and SVL's market cap is $256M and MMA's $46M. With silver at US$40 I would expect SVL's market cap to possibly triple to $750M. Maronan at $3 would be valued at $480M (Disallowed). At $3 per MMA share, the value to RDM would be $1 in share price ($300M).

    Then you have Sybella and god help us if some good news comes out of Yarrie. Potentially a dead company walking. Gone before realising any of the potential upside.

    So as the coming drilling and lab work news starts to hit the market, the risk of a hostile takeover would have to be a concern for Rob. The Maronan potential upside is a major reason why I expect Rob not to go for fast bucks for Sybella by selling MMA shares. He knows the potential upside because he has owned the project for about 20yrs.


 
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17.5¢
Change
-0.005(2.78%)
Mkt cap ! $52.38M
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18.5¢ 18.5¢ 17.0¢ $71.51K 404.2K

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No. Vol. Price($)
4 181267 17.0¢
 

Sellers (Offers)

Price($) Vol. No.
17.5¢ 72497 2
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Last trade - 16.10pm 21/05/2024 (20 minute delay) ?
Last
17.0¢
  Change
-0.005 ( 8.11 %)
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18.0¢ 18.0¢ 17.0¢ 209248
Last updated 15.54pm 21/05/2024 ?
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