RE: RE: RE: Processing Cost 18% of mineral valueWhy surprised?
The new presentation already made it clear that the M project value will be realized soon. How soon? Well, this is the first time RGX management made it clear in writing, so I expect this to be done in one to two months from now. Those who sell RGX now will not get any benefit of the M project (I estimated that once the news is out, the share price will jump $.50 or so immediately, and thus value is fully reflected in the share price). The fair value of the M project is about $.30 IMO, and the news is so good, it will bring in $.50 in share price. If we use .30 as the guide, RGX share value is now $.10 only if we $.40 share price (.40 -.30 = .10). For $.10, you get the full benefit of the LB, and metallurgy, and near term production. RGX at the current price is the bargain of 2011 due to the M project now.
Remember I was one of few shareholders that bought RGX shares In Nov. 2008 during the big financial crash of the U.S. and the world, and held the stock during the great trading halt for 10 months from Dec. 2008 to Oct. 2009. Some people though I got in RGX at a great price (.17 or so in 2008, but later I kept on buying at much higher prices too, the highest was
.90), but I bought it when 99.99% of people were afraid to buy, and I have not sold a single share as today.. Every share I bought in 2008, 2009, 2010, and 2011 is still in my account, and I plan to buy more in 2012 too as the production will surely come in 2013, and with 18% processing cost, RGX will be the lowest cost producer of pigment grade TiO2. Think about it, even if TiO2 price cut by 50%, there is still 32% value left while other TiO2 companies will surely bankrupt. 18% is what the management claimed, we will wait the PEA for 3rd party to tell us if this is true.