The following graphic indicates that based on Vali Carbon Corporation alone the revenue for RGM will be a minimum of £9.3m per year and if output reaches 100,000 tpm £18.6m.
These revenue figures take no account of:
- Rosa – year 2 production expected to be 120,000 tpm = revenue of £22.32m/year.
- Rosa – Highwaller production could reach 600,000 t/yr = revenue of £111.6m/ year. Being conservative and assume only 50% efficient = £55.8m
- Washed coal revenue of $8 / ton
- Other coal opportunities indicated in the above graphic.
- Regency Mines interests in Motzfeldt, Horse Hill and Curzon Energy.
Regency have recently raised significant funds, so finance isn’t an issue. We also are expecting news regarding Horse Hill, providing additional capital.
Regency have 3.35% of Horse Hill as indicated in the following graphic.
Based on information in the public domain you have to question how the market cap of the business can remain c£3.5m for much longer.
What will be the catalyst resulting in a share price re-rate?
Will it be?
1. Market realising the implications of the revenue streams and significant under valuation of the business?
2. Announcement about Rosa – production or management team.
3. Announcement regarding Horse Hill.
4. Curzon announcement.
5. Motzfeldt announcement.
It is clear without any announcements regarding the above five points the share price at its current level of 0.55p offers significant upside.
The imminent revenue streams and share price have no correlation.
Obviously the Chairman believes great upside as he has twice in recent months bought shares on the open market at above 1p a share.
This share will re-rate very quickly on news or when investors realise the revenue that is as good as guaranteed with plant on site, permits in place and off take agreements signed.
Is the share price at the minute a joke or is the lack of communication from the business deliberate?
Could it be Regency aren’t keeping investors informed whilst they assist somebody to obtain shares with a low entry price?
Whatever is happening it’s a great opportunity for private investors.