RE: What IR needs to do- Stallion2No worries, I'll just post pretty much what I had sent to your inbox. Apologies to the board as I am not pumping ROK ,just offering my opinion to a question asked. I also own EXN and am confident it will steadily climb back and get the fair value respect it deserves. Looking forward to the drill results.
I don't have an opinion yet on WEX. I've owned ROK for a while though and like them alot. I am very impressed with their management. They are sharp, have done what they said they would, seem to be good strategic financial thinkers and have a good IR department
Their MAX project will be in production in Nov. It is fully permitted and they recently signed an offtake aggreement for 100% production thru 2007 with options to extend.
No debt, fully financed. PP fully subscribed without warrants.
Good profitability and cash flow: With $27/lb Moly (latest prices), less 10% FOB mine gate, $5 costs, they will see about $20/lb.
With 3MM lbs in '07, that's US$60MM (C$67MM) in cash flow.
Typical base metal plays trade 5-7x cf, so ROK should be valued about C$335-$C470MM. Using fully diluted shares after the PP (~61MM) you get fair value of around $5.50 to $8/sh....
With about 250,000 lbs/month production, they will be throwing off close C$5MM a month in cash flow.
They are close to their 52 week high but I feel the upside is large and it is still a good entry price. They are also looking to further expand their moly source have just put in a senior exploration team to go about this. So with production coming on line they can pay as you go for the further exploration. Just like EXN has done. The exciting thing about this is they have the same geology with the MAX resource as the Henderson Project which is a world class moly deposit,
owned by Phelps Dodge.
They have an informative website. Worth looking at and doing further DD on your own.
Good luck,
Ski