This one caught my eye today so I thought I'd start my first thread on it!
Security: Regal Resources Limited
ASX Code: RER
No. Shares: 50,121,056
Last Sale: $0.125
Market Cap: $6,265,132
Cash: Not enough
Location: Laverton, WA
Total Resource: 613,738oz Au (3.19g/t)
First gold pour occurred back in June '07. Scoped to produce 25,000oz over 16 months from their Menzies Prospect (2,350,241t @ 3.69g/t for 279,150oz) at an average cash cost of $432/oz providing an indicative net cash flow of $7-8m by end of '08.
Dropped to all time low today of $0.125 for no apparent reason. The same price was reached during the August credit crisis. Gold price has been on the rise since then although some profit taking was seen in the past 24 hours.
Currently in discussions with "larger" ASX-listed companies to JV other prospects.
Potentials include but not limited to (my opinions only):
- RRL - $5m in bank. Primarily a JV vehicle. Existing projects surround all RER prospects.
- CRE - Cashed up and hungry. Good grades at Eucalyptus to add fuel to existing project.
- AAM - $5m in bank. Looking to maintain 300Koz/yr increase in resources.
- MON - Karlgoolie/Leonora region. Could pick up Menzies, other prospects may be too far.
- SAR - Within the region. Could snap up Eucalyptus but not sure if they are looking to increase.
- NAV - $10m in bank. Distance may not be economical.
Considerable size resource with decent grades. Lots of activity within the region. Could be a target for takeover especially with EV/oz of under $11. Does anyone here have any experience as a shareholder of RER as I would love to hear what your thoughts are.
Resource Summary ('-' is a placeholder for alignment):
---Menzies: 2,350,241t @ 3.69g/t for 279,150oz
Eucalyptus: 2,160,265t @ 2.51g/t for 174,158oz
-Mt Korong: 1,050,000t @ 2.74g/t for -92,354oz
---Yerilla: --131,286t @ 5.09g/t for -21,472oz
---Malcolm: --142,182t @ 8.72g/t for -37,816oz
-----Total: 5,977,896t @ 3.19g/t for 613,738oz