Fundamentals are very solid but it is really going crazy.YOUNG_TRADER said:Had a few tucked away which I picked up around 7c awhile back so a nice little profit
Be warned they have recently/are doing a placement at 7.5c can't remember how many
Agree to some extent,crazyjimsmith said:Fundamentals are very solid but it is really going crazy.
You are taking a risk at this level but in my opinion it is still undervalued.
21c right now........YOUNG_TRADER said:Agree to some extent,
Its just the underperformance of their Copper operations for the past 6months now has made me more negative towards the story,
Just goes to show how difficult heap leach operations can be, I thought that it would be smooth sailing once they signed offtake with Xstrata for their Copper Concentrate but they failed o meet forecast producction time and time again.
Will be interested to see how their production figures were for this qtr gone by
Good luck to all
malakie_s said:This was on HC guys, I have seen this gents post in th epast and he is almost always on the money....
Future production rates is also worth looking at!!!
Year 1 (this year) is a bit over 1000 tonnes ($7-9M)
Year 2 is about 3000 tonnes (approx $24M)
Year 3 is about 4500 tonnes (about $36M)
Year 4 is over 6000 tonnes (about $50M)
Looking at rough profit margins, PE ratios and the such.... RBM should be worth at least 10 times there currently market cap.... Even for a sustained $15M profit at a PE of 10.... gives a market cap of $150M....
This is ignoring the obvious high worth exploration upside!!!
This is going to be a fun ride......
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Going throught the 2006 Financial Report released 29/9/06. Highlights below....Makes the current market cap of $13M look VERY cheap IMHO.
Redbank Copper Prospect.
1. A JORC classified mineral resource estimate generated by SRK Consulting has identified Indicated and Inferred Mineral Resources at Redbank of 4.2 million tonnes at an average grade of 1.5% copper, for approximately 65,000 tonnes of contained copper metal. That would make the metal in ground about A$500M... (65,000 x $2.60US/lb).
2. The plant is expected to progressively increase copper production to an initial target of rate of 80 - 100
tonnes per month, providing an initial revenue base of around $7.0 - $9.0 million per annum on an annualized basis at current prices until depletion of the stockpiles.
3. Further exploration. (Not all of them, just the best below)
Hole A042 from 3.0m to 21.3*m for 18.3m at 6.5%
Hole A046 from 6.1m to 25.6*m for 19.4m at 8.8%
Hole AZDH40 from 9.1m to 30.5*m for 21.4m at 3.4%
Hole AZDH44 surface to 30.5*m for 30.5m 1.9%
NOTE!!! * is end of hole!!!
57m at 2.06% copper from 11m down hole, including 25m at 3.26% copper from 29m in Hole BL06-7;
37m at 0.96% copper from 73m down hole, in Hole BL06-10.
Hole BL06-1, 44m at 1.51% copper from 80m down hole, including 8m at 2.73% copper and 3m at 3.41% copper;
Hole BL06-2, 34m from surface at 1.18% copper, including 7m at 2.17% copper;
Hole BL06-3, 25m from surface at 1.00% copper.
Hole AD1 from 38.0m to 158.0m for 120.0m at 1.00%
Hole AD1 from 200.0m to 292.0m for 92.0m at 0.90%
Fiji Gold Prospects
1. The total mineral resource position for the main zone at Mineral Hill estimated in accordance with JORC
guidelines is now 3.4 million tonnes @ 2.2 g/t of gold for 240,000 ounces of gold, in the Indicated and
Inferred categories, based on a 1.0 g/t cut off.
2. PERTH-based explorer Redbank Mines says the latest diamond drilling work at its Mt Kasi project, on the south coast of Vanua Levu in Fiji, has confirmed high-grade gold mineralisation within the Waidamudamu prospect giving the company confidence to announce it is now targeting a resource of around 60,000 ounces for the prospect.
Book value of 12c a share (at 06/06). Just for a comparision of book value vs worth (For the non-accountants), CDU's book value at 06/06 was 14c.
exberliner1 said:I have been looking through some of the activities reports for the second half of 2006...
On page 5 of the 30th Oct report Redbank writes about the Waidamdamu gold prospect....this has produced 8.8 g/t and 14.4 g/t AU during the currenr drilling campaign.
The report states that results from 2 diamond drillholes WDDD002 and WDDD008 are "now pending"
Have results from there 2 holes been published yet???.....I can't seem to find any mention of them in ann.s over the last few months...
The mineralisation at Waidamdamu is open in all directions so clarification of these results should help add an expanded JORC AU result to the ongoing CU efforts.