YMYC Tony Locantro, page-6

http://www.redmetal.com.au/images/stories/pdf/P_1610_Best_Speculative_Ideas_5Sept_2016.pdf

•   High quality junior explorer with a suite of potential “company makers”. Strong management, tight structure and outstanding technical expertise.
•   Recent share price weakness a result of disappointing exploration results at Irindina (NT). RDM touched 13.5c before falling and stabilising around 9c.
•   RDM’s market capitalisation is more than underpinned (in fact is hideously undervalued) by the Maronan deposit. Maronan is defined by a JORC 2012 compliant Inferred Resource of 30.75Mt @ 6.5% lead, 106g/t silver (using a 3% lead cut-off grade) and 11Mt @ 1.6% copper and 0.8g/t gold (using a 1.0% copper cut-off grade). This equates to about 2Mt of lead metal, 104.9Moz of silver plus 170,000t of copper and 300,000oz of gold.

•   RDM offers outstanding exposure to the renaissance in the zinc sector.
•   Two major conductors have been identified at the Lawn Hill Project in close proximity to the former Century Mine in QLD. RDM are targeting massive zinc deposits similar to Teena (51mt at good grade).
•   Pernatty Lagoon represents a major target however it is subject to budget constraints and the high-risk nature of the project.
•   Other projects include Corkwood in JV with MEP and the Colorado Potash Project. A Cannington look-a-like target Mt Skippers is also likely to attract attention.
• •   Short-termtarget:10c-11c.
  •   Medium-termtarget:25c-30c.
  •   Long-termpricetarget:60c+
  •   Price targets largely attributable to exploration success. In the event of a successful JV outcome at Maronan and/or a major zinc discovery at Lawn Hill I would expect RDM’s share price to be 50c+
  •   RDMareprofessionalexplorersandanyapparent bandwagon jumping would be by fluke or accident.