So ive just been updating my notes on RFR and thought id share them here for new commers to the company.
Will help outline why i like RFR and why, at 8m MC, i think its got heaps of upside
www.rafaellaresources.com.au
| Sector | Mining, exp |
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| 1 | core competencies | tungsten/tin mine - spain - PFS stage Nickel - canada inc Ni-Cu-PGE projects |
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| 3 | Last Price | 8c |
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| 4 | Market Cap (MC) | 8.6m |
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| 5 | Shares on issue (SOI) | 107,655,571 |
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| 6 |
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| 7 | Current assets (CA) | 1.9m | 1.5m @ june 30 |
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| 8 | Current Liabilities (CL) | 328k |
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| 9 | Working Capital WC = CA - CL |
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| 10 |
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| 11 | Cash & cash equ (Cash) | 1.5m | 1.1m @ June 30 |
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| 12 | Total assets | 13m | 12.6m @ june 30 Inc 10m exp asset (SC mine) |
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| 13 | Total Liabilities (TL) | 328k |
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| 14 | Enterprise value (EV) EV=MC+TL − Cash |
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| 15 | EPS (Earnings per share) cents | (3.64) loss per share |
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| 16 | Dividend | - |
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| 17 | Issued capital (equity) | 15.1m | (3.7m) accumulated loss, 12m equity |
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| 18 | Listed options | 27,098,036 RFRO 30c options expiring 31-Oct-21 | 10,000,000 listed $0.30 options expiring 31 October 2021 as advisory options 2,925,000 unlisted $0.20 options expiring 27 August 2022 as a success fee |
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| 19 |
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| 20 | Est. Spend next Qtr |
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Thoughts
Open Pit PFS: low risk. Existing mine, infra, offtake in place. Needs8mil capex to get into production.
Spain mine has upside. PFS base case is okay, but doesnt take intoaccount underground mine (phase 2). Could double or triple the size of thismine over the course of three or four years (AFR article - copied below)
SC to fund underground mine (phase 2) and canada projects
No Aussie projects
Decent value at 8m MC
tungsten is a specialty metal and listed in the UK, Japan, the US andEurope as a critical raw material (significant demand and pricing upside)
Expectant news
-McCleery prospect - Geochemistry / geological mapping programmeundertaken in Q3 2020 (supported by Yukon Gov’t funding), awaiting assayresults.
-Midrim and LaForce: heli -borne EM (HEM) surveys are planned for late2020 to follow up on these prospects
-looking to get Milestone 1 (JORC) & 2(PFS & Funding secured)over the line
Directors
Peter Hatfull Chairman
Steven Turner Managing Director
Robert Wrixon Executive Director
Ashley Hood Non-Executive Director
Royston Denysschen Non-Executive Director
SECRETARY Amanda Wilton-Heald
May 2020: Transmine was further strengthen when Transaminerepresentative Royston Denysschen joined the Board.
Oscar Amigo García as Project Manager for the Santa Comba Project
Milestone 1:
15,000,000 ordinary shares on the Company announcing a JORC compliantresource at any of the tenements in relation to the GTT Project
Including issue of 2,900,000 milestone 1 performance rights to StevenTurner (2,400,000), Robert Wrixon (250,000) and a contractor
Milestone 2:
15,000,000 ordinary shares on the completion of a pre-feasibility studyfor the development of the GTT Project, and the grant of a loan or any otherproject financing package that allows the Project to progress to construction
Including issue of 2,900,000 milestone 2 performance rights to StevenTurner (2,400,000), Robert Wrixon (250,000) and a contractor
Corporate
13 March 2020: EverBlu Capital Pty Ltd issued 1,380,000 shares in placeof fee for Cap raising, plus small cash $100k
Everblu now hold 11,836,483 (11.2%) https://hotcopper.com.au/threads/ann-change-in-substantial-holding.5627405/
MEI holds 12% of RFR 13,050,000 Shares for Sale of Tenement ClaimsCanadian Nickel-Copper projects, Midrim and LaForce (refer ASX release17/8/20), valued at $1,174,500. Note that 7,830,000 of the consideration sharesare subject to a 6-month voluntary escrow period.
https://hotcopper.com.au/threads/ann-mei-sale-of-midrim-and-laforce.5559692/
May 2020 RFR completed the sale of the Sandstone Project to private goldexploration company Westar Resources via 3,000,000 shares in Westar at therecent fundraising price of $0.05 per share, giving the Company a 5% interestin Westar.
August 2020: RFR raised approximately $1.2m at a price of $0.066 perfully paid ordinary share
2020 Annual report: https://hotcopper.com.au/threads/ann-annual-report-to-shareholders.5644388/
Santa Comba (spain) PFS: https://hotcopper.com.au/threads/ann-santa-comba-pfs-shows-exceptional-financial-economics.5794043/
Investor preso 2020: https://hotcopper.com.au/threads/ann-rafaella-resources-releases-new-investor-presentation.5739074/
Overview of projects
-surface existing open cut (5 yr mine life in PFS)
-underground mine - needs work to reopen
-existing prior investment in process plant
-Close to deep-water ports via sealed road & Infrastructure at site(roads, grid power, buildings)
Drilling
2019/2020 drilling was 8825m/65 holes and has expanded the area of knowndisseminated and vein mineralisation
More than 65,000m2 of prospective area for disseminated mineralisationdefined and still open on strike & depth
30 June, 2020: MRE upgrade was 103% increase in near surfacemineralisation to 10.4m tonnes of ore with 58% of the near surface resourceclassified as either Measured or Indicated.
https://hotcopper.com.au/threads/ann-rfr-announces-significant-mineral-resource-estimate-upgrade.5476416/
MRE also made note of Kaolin: "Highlighting among them there aresome NW-SE faults which frequently induct variable kaolin alteration,sufficiently strong in some areas so that they have been economically exploitedin the past"
Ore recovery process
Xray sorting using Tomra machine to reduce costs
Grinding to increase recovery rate
https://hotcopper.com.au/threads/ann-exceptional-ore-sorting-results-for-sta-comba.5600240/
Phase 2 - Underground
The underground Inferred Resource remains unchanged at 234kt. Totaltungsten trioxide (WO3)
Further drilling needed
Canada cobalt silver Nickel, copper PGE
“The review by SGC strongly supports the initial findings by CSA
Global that the Midrim and Laforce high grade nickel-copper-PGE depositsoffer exceptional upside to the Company.
SGC have confirmed that prior work, although extensive, has not beeneffective given the relatively shallow
penetration of previous airborne EM coverage and therefore significantpotential may have been overlooked."
Some excellent summary info by @phil365 on the new Canadian projects: https://hotcopper.com.au/posts/49252655/single
Other Info
Open Pit PFS
5-year offer of offtake from a leading global German-based consumer, H.CStark Tungsten GmbH (‘HC Stark’)
secured the strategic investment of Transamine Trading (‘Transamine’),toprovide logistical support and offtake for 100% of the tungsten and tinconcentrate over a 3-year period
Subject to the results of the Feasibility Study the Company intends toimmediately seek development funding for the construction and commissioning theSanta Comba Project. (Source: Annual report)
Once the feasibility study is completed, the Company intends torecommence drilling numerous prospects to add both tonnage and grade to feedSanta Comba’s future expansion (source: Sept 2020 Quarterly activity)
The Company is expecting to complete a feasibility study within the nextquarter, at which point funding will be sought for the development of its SantaComba mine. The Company is confident that it will be able to source sufficientfunding from a combination of debt and equity. (source: Sept 2020 Quarterlycash flow sect 8.8.2)
All PFS numbers in USD
(more to come on PFS numbers)
