RESERVOIR MINERALS INC V.RMC

New Scotia note....

[thorgb1]

Scotia Capital has reiterated its sector outperform rating for Reservoir Minerals Inc. (TSX: V.RMC, Stock Forum) as a well as a one-year target of $9 for the shares. That's down from an earlier target of $9.50.

The move appears to be driven by Scotia’s enthusiasm for its Timok project in Serbia. “In our view, Timok is one of the most exciting discoveries made in recent decades, and could represent a prospective new copper-gold complex,’’ writes Scotia analyst Mike Hocking in a report.

Reservoir recently completed a brokered bought deal private placement for gross proceeds of $10 million, and a non-brokered private placement for proceeds of $23 million.

The report says $10 million of the private placement was purchased by Yanggu Xiangguang Copper Co., Ltd. and its management.

Yanggu is one of the world’s largest copper smelting refinining, and processing groups, located in the Shandong Province of China.

Reservoir shares eased 3.2% to $6.58, leaving a market cap of $274.8 million, based on 41.8 million shares outstanding. The 52-week range is $7.54 and $2.22.
Read more at https://www.stockhouse.com/news/natural-resources/2014/03/24/scotia-excited-reservoir-s-v-rmc-timok-project-sets-$9-target-for-stock#Vj4WrZwxPh3CCfhS.99

[cd673]

there is also a share proxy vote circular sent out to us shareholders. And there are links back to the company's website which include a full 2013 management discussion and analysis document. The key takeaway from that aside from all the excellent drill information that's in there is that they're currently negotiating the final operating agreement with Freeport and there will be no

[cd673]

Willis can you find out why the target price went down by 50 cents? Is that simply due to the new larger number of shares outstanding? In any case per the MD&A there will be no porphyry sizing for a while so we can probably forget about analysts estimating that into their price forecasts - or do you think someone may take a crack at it earlier?

[thorgb1]

I think its likely a reflection of a revised outlook on the long term price of copper, which would impact their valuation model. TGB