young traders on board now wowo zoom zoom

Check this out YT,s on board and his resesarch as usual is first rate this one is primed and now backed for a re rating 40 cents here we come bring on the anns wowowowoowow:):):)


RMI


Mkt Structure

Shares
430m
Mkt Cap @ 7c = $30m Current
Mkt Cap @ 15c = $65m Target 1
Mkt Cap @ 20c = $86m Target 2

TOP 20 = 52%
Substantial Shareholders
Sinom (Hong Kon Stell/Iron ore Insto Group) 13.4%
ANZ 8.4%
Mount Gibson Iron MGX 7.4%


Cash
$2m not alot so will obviously need more down the track


Projects



Wowo Gap Nickel, 100%, PNG
[email protected]%Ni + 0.1%Co = 1.7%Ni Equiv

Note that my research on Wowo Gap has found that based on all the historical work, the PNG government is confident to quote a JORC of
[email protected]%Ni Equiv

Valuation
As its a laterite Project I'd say once the JORC is firmed up a $1000/t EV is appropriate (Note Spot $35k - $50k/t)

For now until we recieve assays and confirmation of the mineralisation I will use $100/t Ni EV

[email protected]%Ni Equiv = 2Mt+ Ni @ $100 = $200m = 47c RMI

Now the mian points are
1. Although the current JORC has a low confidence level, detailed research of PNG databases has revealed a JORC of [email protected]%Ni Equiv is being quoted, so there is plenty of upside to the jorc, this in turn has greatly increased my confidence in the project.

2. Given the huge technical and infrastructure costs, a JV with a major is a must! = Farming out/down of interest, but see HIG, they sold a majority stake in Ramu ([email protected]%Ni Equiv) to the Chinese so a JV partner shouldn't be a problem


Blackstone/Michael Hills Ni/Cu/PGE/PGM, 25% Free Carried by RDS, Musgrave Province W.A.
The project is 30Km's away from WMC's Babel and Nebo Nickel Sulphide deposits,

While its early stages, Patersons are highly encouraged by the work so far and belive that RDS/RMI are onto something quite promising here

Valuation
I like Patersons fully agree that the bulk of RDS's current mkt cap is attributable to these projects,
Hence a comparative valuation can be made

RDS 90m shares @ $1.40 = $26m for 75% Interest

Thus RMI's 25% Interst is worth $42m = 9-10c approx RMI


Argyle Iron, 75%, W.A. near Wyndham
JORC 17Mt@55%Fe

Unfortuantely this deposit is somewhat stranded and RMI will need to show a clearer path to development before I will value it properly,

However apparantly their has been strong Chinese interest in a potential JV, once one appears I will re value this project

Valuation
As stated, due to development uncertainty the project only deserves an EV of $2.50/t vs $5/t I was happy to use for CUL's

17Mt@55%Fe = 9.35Mt, 75% Interest = Net 7Mt's Fe
7Mt's Fe @ $2.50/t = $17.5m = 4c RMI

If a chinese JV or clearer path to development appears I will be happy to use $5/t = 8c RMI




Qld 3 Rivers Ni/Cu, 10% Free Carried by SRL, Greenvale Qld
SRL should have drilled 3 deep holes to test for NI/Cu sulphides, not sure where this project is at



Summary

- WOWO could be a company making project, remember JRV's run? 400% in a month based on its huge laterite Nickel Project
- The RDS JV underwrites/implies an SP of 9c-10c
- The Argyle Iron Ore Project adds 4c in spec value (8c once I see JV etc)


Total Value I see pre Wowo Gap rerating = 23c
After more confidence in Wowo = 40c+