RML to list on the a US OTC markets with the ticker: RLMLF
Our US critical minerals Investment Resolution Minerals (ASX: RML) just announced that it would be listing on the US OTC markets.
RML said that it had started the listing process over 90 days ago, and now because of a “rise in demand and interest” from North American investors - the process would be fast tracked…
We will be tracking the US listing here:
(Source)
Once RML is listed on the OTC markets it would make investing in RML a lot easier for investors in North America.
RML is the only ASX listed small cap company with ground next to ~$1.5BN Perpetua Resources.
Perpetua is going into development on its giant gold-antimony project in Idaho, USA.
Once in production it will be the biggest open pit gold mine in the US and the USA’s only domestic supply of antimony…
We think that as Perpetua goes through the construction process on its mine, the market will become more interested in what a fully developed project will look like for the company.
Perpetua is also a fairly well known story for the North American investors - the company has re-rated by over 1,000% inside the last 24 months.
That should mean any company trying to replicate Perpetua’s success could be interesting to the North American crowd.
That’s why we think RML’s entry into the US OTC market will be good for RML’s share price.
US OTC market will open up RML to the world’s biggest capital market
We think an OTC listing is good for RML for two key reasons:
- RML can now be accessed by investors in the biggest capital market in the world. - the US is undoubtedly the world’s biggest capital market. A small cap stock there can have a market cap of ~$200-300M… IF the US market really starts to take notice of RML it could mean capital inflows into the stock increase significantly.
- US investors are interested in critical minerals right now - the big tech investors who usually avoid the mining industry are talking about gold and rare earths of late. Having a US listing would make RML easier to access for these guys if they were to start looking for gold-antimony exposure.
Ultimately, it will come down to what RML can achieve with the drill bit (whether or not the company can define a big resource).
The benefit of being dual listed is that the company will have a much bigger audience to deliver good news into…
… Which we hope translates into a bigger re-rate in the company’s share price (assuming the news is really good).
We are Invested in RML to (hopefully) see the company have some exploration success and define a gold-antimony resource of its own…
(RML’s project also has tungsten and silver - any discovery of those would be an added bonus).
Our RML Big Bet is as follows:
“RML to re-rate to $200M market cap on the back of strong drill results and maiden resource, plus continued interest and capital flows into the USA critical metals thematic”
NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the medium term (2+ years). There is a lot of work to be done, many risks involved - just some of which we list in our RML Investment Memo. Success will require a significant amount of luck. There is no guarantee that our Big Bet will ever come true.
We announced our Investment in RML last week:
In our launch note you will find:
- A brief overview of why we are adding RML to our Portfolio
- Why we think RML could the next runner of the US based critical metals stocks
- More on RML’s neighbour Perpetua which is up over ~1,000% in the last ~24 months
- How RML’s exploration model is based on Perpetua's project
- The 10 Reasons why we are Invested in RML
Check out the full note here: Our Latest Investment: Resolution Minerals (ASX: RML) Historical antimony production next to the biggest antimony project in the USA ...plus gold, silver and tungsten.
