RESERVOIR MINERALS INC V.RMC

Thoughts on con call?

[thorgb1]

Where is everybody?

[rob926]

Glad someone asked about drilling their 100% property because Simon was really wishy washy and said maybe they will drill later this summer. Glad to hear that they are planning on spending 5 million this year which should be at least 10 holes especially because they should be shallower holes. I did not like the tone when he answered about what is going on with Freeport and the agreement. I got the

[guiltedge1]

We did learn that Freeport is negotiating with RMC some kind of agreement. Why be so pessimistic? Let your imagination run a little. RMC has a number of 100% owned licenses. With cash in the treasury this is not a bad hand to have. No comment was made about the floods in Serbia which was odd since that must be a big local issue.

[guiltedge1]

Re Serbian floods. Let me be explicit. Mining companies often extend themselves to be aware of and relate to their local "community", - from whom they hope to extract resources - and I wonder with $45 million in the treasury what RMC will be doing to show they are aware of the flooding that has gone on around Serbia. Maybe it is time for RMC to hire a "community relations"

[rob926]

We have known since Freeport has stopped drilling that they are negotiating an agreement. I'm not being pessimistic just looking at all angles. Simon said they were negotiating for the best interests of the shareholders. Freeport has put a gun to our heads by stopping drilling. Remember these are the guys that were illegally exploring our lease next door. The scenario I like that I heard was

[guiltedge1]

Rob: One angle to consider is - that if FMC was actively seeking to acquire RMC in 2014 then might you not expect (a) FMC would quit drilling right now and (b) RMC's Simon Ingram would do a "routine" presentation just like he did today? I have zero knowledge - this is just my optimistic speculation.

[rob926]

Good speculation and makes sense. Another is Freeport has enough data to know they want to be in Serbia and decided to negotiate with Reservoir and the Serbian goverment before they prove up any more value. we have enough data to show large intersections of what might be a large porphyry. better to stop drilling now before any analyst can put a value on it. same goes for the new discovery up north

[thorgb1]

I agree that Simon was very non-commital about the Freeport drilling this year, so you have to believe that there are hard negotiations going on in the background, that aren't close to resolution. Freeport is probably also in the process of negotiating the royalty agreement with the government of Serbia, so I expect those 2 initiatives will occupy them through the next few months. I expect the

[rob926]

You might be right about not being close to a resolution. Raising money made it easier for Reservoir to negotiate there end of the operating agreement but with a resource estimate out it might be more difficult to negotiate with the Serbian goverment (a great reason to stop drilling and proving up more resources). It is staright forward that it is 15% taxes and 5% net smelter royalty but the

[knotshure]

All in all, on the surface the conference call seemed like a non event . There must be more to the story though . The brokerage firms and their pro traders had at least 10 buyers drop 50 to 60 k on RMC stock yesterday morning . Some poeple out there must know something to get that kind of money to buy in .