Hey, this one used to be called REM. Rare Earth Metals. I have them in my rare earth's file. Aside from this new focus on their Volcano Massive Sulphide exploration, I still think their worth their market cap based solely on their REM property alone.(after all these recent financings, if all warrants and options get exercised they'd receive another $6.9M for exploration and they'd have 85M shares O/S = about 11M enterprise value at $0.20). Rare earths can be valuable deposits. Their Eden lake property found some 35 rich veins of the stuff, the averge grade of 30 was found to have a $21,000/ton gross metal value. So they only find 10,000 tons and set up a small operation to high grade the stuff? 1/20th of that value (uranium is 10:1 In-situ value:NAV) and that's higher than current market cap.
I made some good cash off REM last year when they went from .12 to .27, and I think they'll repeat that pattern again in the foreseeable future. I know they've refocussed their efforts on their Cu/Zn VMS stuff, probably for good reason, but their Nickel prospects and rare earths have more value to add than their being given credit for.
Will they get over $0.20 to get all those warrants exercised? I'd think so. Nickel is worth too much, and all China has to do is slap an export tax on their rare earths like they did recently on moly, and everyone will be looking for a list of REM plays. Then, VMS will wish they stuck with their name REM instead of switching to VMS. I guess they figured they weren't being given any value for the potential of their VMS deposits. One day, they'll get their name consistent with market buzz and they'll get valued properly. I'd say they test the all time high prior to next round of drill results. Their market cap is too small not to.
Haitokin |
