RESERVOIR MINERALS INC V.RMC

RMC in Driver's Seat

[psj567]

Based on Freeport's public guidance respecting its 2014 exploration budget, it has budgeted $20-25 Million for Serbia. This is a lot of drilling. It suggests if not confirms that Freeport is happy with  what it has seen in the yet-to-be-released 2013 drill hole assays regarding the porphyry at depth. The most logical scenario going forward is that Freeport would attempt a friendly buy-out of RMC's Serbian interests before more value is added to RMC through Freeport's sole funded drill bit. A friendly offer of $9, which represents about a 60% premium to the current share price, would cost Freeport about $380 million which is small potatoes to Freeport. While I think RMC's Serbian interests are worth closer to $12 a share, a $9 offer today would be one that management would have to consider seriously.

[GeneFrenkle]

I don't disagree with anything you've said, but that does bring to question of why management would agree to the buyout at $9/ share.  We're funded through the completion of the BFS, which admitedly could be several years away, so getting bought out is more a question of when and not if.  The longer management waits, the more drill results come out and therefore the more

[psj567]

I don't mean to imply that RMC management would or should accept a $9 offer. Management has done a great job thus far and I have no doubt they will continue to do so. They too have significant RMC stock holdings. Maybe $9 is fair, maybe $20 is fair. Since only Freeport possesses all of the material information to make such an informed decision, we can only guess in the meantime. I  just

[cd673]

Good discussion. Lots of scenarios are possible, including steady state slow and onward with results to come. As long as the shares are going up we are in a good spot. And I believe Freeport will keep drilling no matter what, unless they really are not in any hurry and can drag it on for a few years, in which case I think one drill will keep turning, to show good faith they are working on the BFS.

[rob926]

It's hard to match up what and where Freeport is spending their budget for green field exploration. There 2013 budget for Greenfield exploration was $24 million. They show Serbia as their only Greenfield area  (July 2013 presentation). Here's the tricky part they pulled all rigs but one so they would not go over there 2013 budget of $12.9 million. So where was the other 11.9 million

[psj567]

cd673:  In its Q2/2013 earnings conference call presentation, Freeport outlined a 2013 exploration budget of $185 million divided by geographic regions (North America, South America, Africa, Indonesia and Other Areas), with 13% allocated to "Other Areas." For 2014, Freeport's global exploration budget has decreased to $130 million but the share for "Other Areas" has

[cd673]

Yes it does thank you. Hopefully we will know soon how much the budget for 2014 will be. Big and aggressive as you say would be good! Something this rich certainly warrants the continued investment. I found a couple of more articles to share, older and newer. https://www.globalminingobserver.com/reservoir-drills https://www.globalminingobserver.com/rig-movements https://agorafinancial.com/wp

[rob926]

The October earnings conferrence call slides show other areas dropping to 21% so it is now 27.3 million. The orther 3% was allocated to other current mines. I keep looking but they have not shown the slide which showed Serbia as the only Greenfield location since that July presentation. I think they do not want any analysts to be asking about it.

[Meester954]

If you listen to the June 24th FCX presentation, the Chairman was pretty clear about what he thought about this project.  My guess is he got well ahead of where the corporate development guys wanted him to be in public and they yanked the slide moving forward so they do not have the problem again.  Listen to the presentation and judge for yourself.  It is very early (somewhere

[rob926]

I looked for the audio but could only find a transcript. While it is positive about Serbia it only quotes high ore grade no comments to size and says a lot of drilling needs to happen. Is this the same that you guys heard? "So, Serbia by the way is a potential discovery, one of our union partners over there is -- as you add very high grade of gold and copper, looks much like the grades in

[cd673]

I think that quote was from the FCX chairman's remarks on june 24th.

[rob926]

Yes it is. I looked it up after Meester954 said "If you listen to the June 24th FCX presentation, the Chairman was pretty clear about what he thought about this project".Read more at https://www.stockhouse.com/companies/bullboard/v.rmc/reservoir-minerals-inc?postid=22005169#edc8vbQLj8xKRlrE.99 I thought the quote was positive but very inconclusive as to size. Only reference to

[rob926]

Byron King was talking up Freeport in his latest "Outstanding Investments" newsletter. His main point was the tremendous discovery taking place in Serbia. Surprised he did not make his usuall plug to sign up for Energy & Scarcity to learn who the Junior Miner is that owns the claims.

[cd673]

Good front page of stockhouse today, article on freeport and rising copper price potential. A nice rise in 2014 prices would be very good for freeport and reservoir.

[PineappleTrader]

Thats cause E&S is in the gutter. All he has worth talking about is RMC. Whose management also brought you REO, today that went to 0.005. Only matter of time before do pull a fast one and RMC holders get Bag of **** and freeport buys them out and managment cashes in. 

[cd673]

While I agree REO has been a dog, which is putting it nicely and I have lost on it too, management has created a lot of value for us with RMC to their credit. And I think for RMC to be acquired, there will be at least a few significant investors making sure it is fair. There will be no fast one.