In my opinion there is only one stock that has a chance - and that's RTA... with the help of FMS and other future customers for its Infrastraucture project that will unlock an entire iron ore province.
If you don't believe me, believe Todd Corporation, a multi-billion dollar conglomerate that has purchased a 46% stake in RTA, along with direct investments in both RTA's goliath iron-vanadium-titanium deposit and itsinfrastructure project.
Last year, Todd purchased an additional 7% stake in the Balla Balla vanadium-titanium-magnetite project from
RTA., which reduced RTA's interest from 75% to 68%, and increased Todd's from 25% to 32%.
Todd Corp paid $7 million for this 7%... which values the project at $100 million, and RTA's 68% interest at $68 million - more than 4X RTA's entire market cap of $16 million.
And... most analysts ascribe most of RTA's valuation to its infrastructure project - again in JV with Todd, with RTA holding 65% and Todd 35%.
Rutila has received approvals from the Minister of the Environment, the local Ngarluma Aboriginal Corporation, and tenure from the Department of Mines and Petroleum, for a new export facility on the Pilbara coastline - the Central Pilbara Infrastructure Project.
It's similar to PDY's fanciful effort in another Western Australian iron ore province... except RTA's proposal is legitimate, and has a real financial backer.
The proposed Export Facility is directly alongside RTA's Balla Balla vanadium–titanium–magnetite project.
The Export Facility to have excess capacity, and has signed an Alliance Agreement with Flinders Mines (ASX:FMS) to use and pay for this excess capacity.
Could RTA be the next FMG
Like Fortescue, RTA thinks big.
And like Andrew Forrest, Nick Curtis has the knowledge, experience, industry respect and network of connections to actually pull it off.
I didn't pull a Fortescue comparison out of thin air...The Wall St Journal made the same observation in May last year (you need to subscribe to WJS to read the full article)
http://online.wsj.com/news/articles/SB10001424052702304256404579451404288968932
And from RTA's recent AGM presentation:
"
The combined project will be at the lowest cost quartile with characteristics very similar to Fortescue’s Solomon hub mining region"
One of the keys is funding - Fortescue got it right by securing a large percentage of its funding from direct investors and Chinese end users of its iron ore.
Supportive financiers with a vested interest in having the project succeed is crucial.
RTA have all this also - with Todd behind them every step of the way, RTA will be hard pressed to fail.
Todd is investing and providing funding as necessary, on very attractive terms and with flexible and generous repayment schedules.
RTA has zero bank debt - 100% of their funding comes from Todd.
Todd Corporation
I have a huge amount of respect for Todd Corporation, both for their investment success, and the ethical way they do business.
Todd is worth several billion dollars - as a private company their exact worth is difficult to ascertain, but in 2011 their energy assets alone were estimated at $4 billion.
One of their recent energy investments is providing financial backing for a $1.3 billion methanol plant, the largest in North America:
http://www.nzherald.co.nz/todd-corporation-limited/news/article.cfm?o_id=600613&objectid=10868737
You can read about Todd, and even watch a quick video of the Chairman, John Todd, offering business tips and insights via the following link:
http://www.stuff.co.nz/dominion-post/news/5347468/Rich-morally-responsible-for-helping-others
Now aged 84, Todd has chaired Todd Corporation, one of New Zealand's largest companies, since 1987, taking over from his uncle Sir Bryan Todd
.
In addition to minerals and energy, Todd has large investment interests in healthcare, wine, and property.
http://www.toddcorporation.com/content/todd-minerals-and-coal
Edison Investment Research
Edison has over 110 employees, including 70 dedicated stock analysts. They are one of the leading international equity analysis firms, and on 13th 2014 June they released a report on RTA.
Edison gives RTA an unrisked valuation of $800 million... that's about $8 per share:
View attachment 37489
Todd signed an option agreement to acquire a further 7.5% stake in the balla Balla JV for $36.4 million - this implies a project value of $485 million...
RTA's 65% interest would thus have an implied valuation of $315 million
View attachment 37488
Remember PDY shares going crazy on a dodgy finance deal to unlock an iron ore province? RTA has something similar going on - only difference is that it's 100% legit.
View attachment 37487
And would you believe that RTA's market cap is still $5 million lower than PDY!!
You can read Edison's complete report on RTA by clicking the link below:
https://docs.google.com/gview?url=h...5cf17d66dfc503b73463e9b2808ad.pdf&chrome=true
The Brains Behind the Rise of Lynas
Nick Curtis... you may remember him from former market darling Lynas Corporation (ASX:LYC).
He is an exploration and development alchemist, matching the right projects with the right people and the right funding at the right time.
He oversaw the minting of multiple millionaires during Lynas' meteoric move from 5c to $2.50 - a handy 50 bagger - on its way to a market cap of over $3.5 billion.
http://www.bloomberg.com/news/2011-...s-builds-fortune-with-bet-on-rare-earths.html
Investors that bought $20,000 worth of Lynas shares around mid-2001 had the opportunity to cash out for $1 million within 10 years.
We are hoping he can repeat his success with RTA.
Curtis was President of Lynas from 2001 until March 2011 - around about when Lynas hit all time highs of $2.70.
He stayed on at Lynas in a lesser role until 2013, when he decided to pour his time and energy into a new challenge in RTA, then known as Forge Resources (ASX:FRG).
RTA's vanadium-titanium-iron deposit alone is worth multiples of the current market cap.
Compare to fellow vanadium-titanium-iron outfit TNG Resources (ASX:TNG) following its agreement with POSCO last year.
TNG reached 34c per share, and a market cap of around $180 million - 10X that of RTA, based solely on its Mount Peake VTI resource:
View attachment 37490
Now have a look at what RTA has...
http://www.rutila.com.au/Balla-Balla/ProjectsDetails.aspx
View attachment 37491
RTA's deposit is almost triple the size - 455mt v TNG's 160mt.
Its iron grade is almost double - 44.7% v TNG's 23%.
RTA's titanium grade is around 160% higher - 13.7% v TNG's 5.3%.
And its vanadium grade is over 130% higher - 0.64% v TNG's 0.28%.
It's hard to argue with those numbers.
