Decent performance today for a 6c close. Still some heavy selling around 6c for now.
Hope we are able to break mid 6s soon or else we will have a bearish double top pattern forming from the 6.4c top 2 or so trading days ago.
View attachment 902423
Not too big a deal either way since once drilling gets going, this won't matter too much as I expect we will be sitting around 8-9c (10c might be tough to crack). At 8c, we will have a 32mil mc which is still at the low end of the valuation spectrum compared to other speculative brine explorers on the ASX.
RLC: $21.49mil MC
PNN: $39.68mil MC
LKE: $61.91mil MC
ASN: $58.06mil MC
*fully diluted at 4:10pm Jan 2 '18
If we match the average of these other 3 briners' market capitalisation, we will be sitting at 13c per share during drilling. This is based on their average market cap of $53.21mil. Of course, this is a pretty superficial way of valuing shares since it assumes all the comparison companies' assets are equal but does still show that RLC will be able to support 10c+ share price once the drill bit hits the ground - especially since we have excellently low resitivities that confirm the "strong targets" on our project claims.
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*I'm low-key hoping directors get our drill hole at CM1 extended further down - to 1200m-1400m - since it was originally earmarked for 1400m. Would cost few hundred k extra I'm guessing but might be worth checking whats down there.
A few people also seem confused about the lithium concentrations in Nevada. Having low lithium ppm is not a problem IF impurities (such as magnesium) is low. On the other hand a 1000mg/L Li project might not be very profitable if theres i.e 20000mg/L Mg. After all, lithium is cheap to concentrate (just let it evaporate a lil longer and u good) but expensive to process. This is also one of the primary advantages Nevada has over other prospective brine territories.
Just thinking to the future. At a 13c sp and a market cap of ~$52mil, we will only encounter small amounts of dilution in raising capital for the other drill holes.
CM1 (current one - 1000m): $1.9mil, fully funded.
CM2 (800m): est. $1.4mil
BSS1(1000m): est. $1.9mil
BSS2(600m): est. $1.2mil
Alkali Lake (I assume it's benched for now...)
1.4mil+1.9mil+1.2mil - 1mil (post cm1 cash on hand) + 1mil (working cap/overheads/admin) = $4.5mil.
So at 13c, dilution will be <10% to fully fund all the remaining 3 drill holes at Columbus Salt Marsh and Big Smokey South. Not bad ay.
Heres a imaginary timetable I'm picturing for 2018.
Jan: drilling commences.
Feb: first assays released.
Mar: final assays released. Brine samples in testing
April: Brine sample results released.
May/June/July: next drill holes + brine sampling.
August/Sept/Oct: next drill holes + brine sampling
Nov: remaining sample results released.
Dec/early 2019: discussion with potential direct extraction partners and start of feasibility studies?
*somewhere in q2/q3 there will be at least 1 CR I'm guessing. Should be at a very favourable share price.
If Geof & Geoff pushes any of the project to feasibility study level we might even get to be worth $100mil+
(20min delay)
