This is excellent. Very small dilution and a modest top up,...

This is excellent. Very small dilution and a modest top up, which shows great confidence that any future CR will be done at a much higher share price.

The broker who has performed the research, who knows the most about the company, its data and its prospects, have put their money where their mouth is, at what is basically market rates.

Putting together the recent announcements about beneficiation grades, analysis of a plant with 4mt per annum output and moving to mine planning, there are some very clear hints about the outcome of the economic analysis and likelihood of a decision to mine.

So we have a company with a market cap of around $20m fully diluted, who look set to be producing NET revenue of up to $300m p.a, based on Veritas report profit margins multiplied by possible plant output, as referred to in the recent annual report, with that revenue targeted for 2012 or possibly late 2011.

They are focusing on a 10+ year mine life.

RHM is truly looking like a magnificent risk reward play, with the risks getting lower and lower all the time.