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ASXIOU
02-06-2006, 07:43 PM
Prospectus available at www.royalco.com.au
Thanks must go to cdchi for bringing this to our attention on the OXR thread at SS. Oxiana shareholders would have received a letter in the mail notifying them of this impending IPO. To quote that letter...

'ADVICE OF INITIAL PUBLIC OFFERING (IPO) IN ROYALCO RESOURCES LIMITED
Oxiana Limited (“Oxiana”) is selling its wholly owned subsidiary, Oxiana Philippines Inc (OPI), which holds a
range of gold and gold-copper mineral exploration projects in the Philippines to an Australian company,
Royalco Resources Limited (“Royalco”).
OPI has been exploring for copper-gold and gold deposits in the Philippines since the early 1990s. A number
of mineral exploration projects have been assembled by OPI in known mineralised regions including the
Central Cordillera of Northern Luzon, the Sierra Madre of Eastern Luzon, in Southern Leyte and in North-
Eastern Surigao.
Royalco at this stage, has a portfolio of 10 royalty interests over various exploration and development
tenements within Australasia and, in conjunction with the acquisition of interests from Oxiana referred to
above, is proposing to list on the Australian Stock Exchange Limited (“ASX”) in June 2006. Oxiana will
receive 10 million shares in Royalco at the issue price of $0.50 as consideration for the sale and will hold an
interest of 17.7% at the time of IPO. Peter Lester, Executive General Manager Corporate Development for
Oxiana has been appointed as a Director of Royalco with effect 11 April, 2006.
Royalco has prepared and lodged a Prospectus for a proposed fully underwritten issue to raise $12,000,000
(24 million shares at an offer price of A$0.50 per share) which will mainly be applied to additional drilling and
development of the OPI interests. This offer is available to members of the public with registered addresses
in Australia and New Zealand and is expected to open on Wednesday, May 31P
st
P and is expected to close on
or before Monday, June 19th.
If you are interested and wish to participate in the Royalco IPO please contact Royalco using the details
shown below. Alternatively, you can apply for a prospectus on-line by visiting the Royalco website:
www.royalco.com.au.
Shares in Royalco will only be available for subscription pursuant to an application form contained within the
Prospectus. If you wish to apply for securities in Royalco you will need to obtain a copy of the Prospectus,
complete and lodge the application form together with the full amount of application monies payable. Please
note that the Directors of Royalco have reserved the right to close the offer at any time.

Remembering what happened to the last OXR spinoff being Toro Energy [:0] I guess it is fair to say that unless the metals market is getting totally trashed this should hit the boards at a nice premium. Ongoing royalty interests fom a number of mining operations providing steady cashflow, prime gold and copper exploration leases as well as Oxiana and Rio as substantial holders looks like a very nice mixture to me...

disc: Have applied for shares in IPO but am not getting my hopes up [B)].

cdchi1
03-06-2006, 10:00 AM
Thanks ASXIOU

You are correct, this IS the (mining) float of the year, whether it performs strongly or not.

This is a high quality company with a very big future.

The Reefton gold royalty at current gold prices is worth around $4M a year...Reefton should be developed by Oceana Gold by end of year and production should start early next. So royalty flow should start to Royalco mid next year. And the 7 year minelife quoted on Reefton is likely to be more like 20 years...yes Oceana gold is a company to look at if you get a chance, no i dont hold.

The point about the royalty is that Royalco wont need to go back to the market for shares while its in exploration phase...of course, if it finds something big (and it will) then it will need to raise capital.

OXR never put a drillhole down in Phillipines i believe...shame. Why are they giving it away to Royalco? Well wouldnt call it 'giving away'. they retain 17%...AND have clawback rights if the project is of a specific size or bigger (as long as they fund it)...its a WIN WIN situation.

Im looking forward to the float, and hope it doesnt get too ahead of itself as would like to buy up sub $1.

Cdchi1

ASXIOU
05-06-2006, 08:30 PM
Rumour says float has already closed way oversubscribed. Can you confirm this cdch1?

cdchi1
05-06-2006, 09:07 PM
All I can say is I would be surprised if it wasn't heavily oversubscribed last week given that OXR holders (and there's a lot of them) would have got their letters over a week ago, and would have sent their cheque the day they got their letter. And given that many OXR holders are probably fairly well off these days :D I assume that many cheques weren't for small amounts.

Cdchi1

ASXIOU
06-06-2006, 09:33 PM
Well my cheque was banked on the 31st (the opening day) so now just waiting to see what happens...

cdchi1
06-06-2006, 10:56 PM
I have a good feeling you will get some if it was day one...would be unlucky not to!! How many is another question...

Cdchi1

ASXIOU
23-06-2006, 10:39 AM
Have been allocated all the shares I applied for :). Split up my application into smaller amounts under different family members which seems to have worked as people who merely applied for a single large amount seem to have been scaled back quite considerably. Should be hitting the boards towards the end of next week although think I'll hold onto these for little longer..

ASXIOU
28-06-2006, 10:54 PM
Floating tommorrow 11am. I'm looking forward to it to say the least. Very tightly held with excellent assets and potential. This thing should fly. :)

yogi-in-oz
30-06-2006, 05:48 PM
:)

Hi folks,

RCO - Royalco ... floated on 29 June 2006.

A high of 60 cents on the first day of trading
failed to hold and Day 2 has been an inside day
so far, with RCO trading from 58 high down to
54 cents, trading down for most of today.

With only 11 bidders in total, there appears
to be little interest in RCO, right now.

Looking ahead, key dates and expected sentiment
are detailed, below:

July 2006:

05072006 ..... minor and positive

14072006 ..... minor

23072006 ..... minor

24072006 ..... significant & positive (finances?)

25072006 ..... minor and negative

28-31072006 ..... negative spotlight on RCO

August 2006:

02082006 ..... positive news/moves expected.

15-16082006 ..... negative news???

18082006 ..... negative cycle - finace-related???

29082006 ..... minor and positive news.

30-31082006 ..... 2 cycles here - positive news???

September 2006:

11092006 ..... positive sentiment - finances???

15-18092006 ..... 2 cycles here - minor news???

25092006 ..... minor and positive

October 2006:

2909-02102006 ..... minor

06-09102006 ..... 2 cycles - significant and positive news???

*** 30102006 ..... 2 cycles and VERY significant news expected
here ..... finance-related??? ***

November 2006:

02-03112006 ..... aggressive rally from here???

09112006 ..... negative and finance-related???

Let's see how all this unfolds.

happy days


yogi

:)

ASXIOU
30-06-2006, 07:45 PM
Dissapointing float for RCO. There were alot of stags around who were happy to take their 10-20% profit which I suppose isn't too bad but I was expecting and RCO deserves alot higher price. I'm holding for the long-term. Read the prospectus to see why.

backtobasics
30-06-2006, 07:51 PM
quote:Originally posted by ASXIOU

Dissapointing float for RCO. There were alot of stags around who were happy to take their 10-20% profit which I suppose isn't too bad but I was expecting and RCO deserves alot higher price. I'm holding for the long-term. Read the prospectus to see why.


Thanks for recommending people buy into this dog. Well done![V]

ASXIOU
30-06-2006, 08:11 PM
quote:Originally posted by backtobasics


quote:Originally posted by ASXIOU

Dissapointing float for RCO. There were alot of stags around who were happy to take their 10-20% profit which I suppose isn't too bad but I was expecting and RCO deserves alot higher price. I'm holding for the long-term. Read the prospectus to see why.


Thanks for recommending people buy into this dog. Well done![V]


I don't recommend anything. Merely put the facts on the table. All the necessary information was there (prospectus) and people make up there own minds. Even so you had the opportunity to make a quick 10-20% (not bad for filling out a form) and if you took your myopic glasses off and actually new anything about valuing stocks you could see that the potential is huge and that the market price doesn't always reflect the true intrinsic value.

jasper_88
30-06-2006, 08:33 PM
gees backtobasics, a bit rough, plenty of upside yet. Do your own research if you don't like the research of others!

Opine
30-06-2006, 09:19 PM
Hmmmm......not a holder though i wonder what he thinks makes it a dog?(I think he picked up that you were hoping for a bigger quick profit.)You are right though my friend,the current s.p doesn`t reflect the believed value.Good luck.I think the other chap is disgruntled for some other reason.:)

cdchi1
02-07-2006, 02:51 PM
ASXIOU

Very much a fizzer...myself and a couple other friends were quite disappointed, but on another level it allowed us to top up significantly.

I always had a gut feeling that the market may not 'understand' the company and what its about...ie royalty cashflow to fund exploration so keeping a tight capital structure. More likely than not, the average person if you asked im about a royalty would think about the music industry, or worse still...our unvbeloved queen.

In brief, we have missed the momentum opportunity a good float would have provided, so now we will have to rely on exploration, and progressing of the reefton mine by OceanaGold.

I have no reason to sell and every reason to buy more.

Backtobasics...dont tell me you seriously bought a stock based on a forum post alone!!! Keep doing that and your investment days are numbered.

I would be surprised if 10% of online forum tips were winners...the trick is to get the post, and research it...then you might get the 10%.

Take a look at the Sharescene competition results last year...in a generally positive year, only around half finished in positive territory...what does that tell you about the quality of online posters?

Cdchi1

ASXIOU
12-07-2006, 07:32 PM
quote:Originally posted by backtobasics


quote:Originally posted by ASXIOU

Dissapointing float for RCO. There were alot of stags around who were happy to take their 10-20% profit which I suppose isn't too bad but I was expecting and RCO deserves alot higher price. I'm holding for the long-term. Read the prospectus to see why.


Thanks for recommending people buy into this dog. Well done![V]


Up 20% on no news and largest volume since listing. Hope you got a load of these on the cheap while you could b2b [^]

ASXIOU
08-01-2007, 11:02 PM
Have personally been buying large amounts (for me) of RCO over last couple of months and from the look of Fridays SSH i'm not the only one. Expecting huge things from this one over next 12-24 months on the drilling front not to mention the OGD Reefton royalty which is on-track to start kicking in extra funds from mid-year. Very little downside from here with huge upside, just take a look at the figures from the recently 'discovered' 1970's feasibility study for the Gambang drilling targets (mentioned in 1st qtr activities report). A very tightly held stock with with Oxiana, Rio Tinto and Colonial First State all substantial holders, excellent drilling targets, 'A' grade management and imminent cashflow make this as good as any mining 'spec' will ever be. This could definitely be the start of something huge.

Disc: Hold RCO, DYOR

ASXIOU
14-01-2007, 07:47 PM
Research report from SHAWS (6 months old) but gives a good overview of the company. Definitely worth a read for anyone interested.

http://www.royalco.com.au/royalco%20shaw%20report%20july%202006.pdf

ASXIOU
15-01-2007, 01:22 PM
Hmmm something has gotten into this over the last week or so. There have been a couple of large buyers who are starting to become a bit impatient. Quarterly should be out soon and give us a good update on how things (drilling, approvals, new royalties?) are progressing.

Disc: Hold RCO, DYOR

tapman
02-02-2007, 07:16 AM
Looking better all the time.
Bought into RCO a few weeks ago after the heads up from ASXIOU.:)
Interesting 2007 I think.
Cheers

ASXIOU
02-02-2007, 12:26 PM
Hi Tapman,

There is some seriously large accumulation of RCO going on at present. Breaking to new highs on a daily basis. Shaw Stockbrocking recently released a report modeling the cashflow of RCO over the next 5 years or so. Even with the aggressive and expensive drilling campaigns going on the royalty incomes will provide more than enough cash and prevent any need for dilutory placements. As per the the quarterly report approval for drilling of the highly prospective Gambang tenement should be imminent which I suspect is the main driver behind the current price rises. In 1979 Trans-Asia Oil identified a 55 million tonne copper-gold reserve in this very area. Nice huh...??? [:p][:p]:D

Disc: Hold RCO, DYOR

tapman
13-02-2007, 01:24 PM
Up to 69c and buy depth building. Interest is increasing and no one looks like wanting to sell. Good stuff.:)

ASXIOU
15-02-2007, 09:30 PM
Tapman,

The numbers speak for themselves:
-At current gold price of $NZ 950oz RCO will be receiving an income from Royalties from Oceana Golds Reefton mine of more than $4m pa commencing mid this year.
-Cash in the bank of around $9.5m (as of 31 Dec 06).
-Current market cap of just $42m fully diluted
-Some extremely high quality drilling targets with continuous drilling over the next 24 months.
-Oxiana and Rio Tinto as substantial holders.
-2 more Royalties set to provide income stream within 24 months.
-IMO a stand-out among the junior mining sector.

Disc: Hold RCO DYOR

ASXIOU
26-02-2007, 12:05 PM
Lets see if RCO can set another record high today. Seem to be alot of people watching this one from the sidelines. Stuff all volume for sale so whenever a decent sell parcel appears it gets snapped up pretty much straight away.

Disc: Hold RCO, DYOR

ASXIOU
26-02-2007, 09:42 PM
Well it ticked up quite nicely to close at another record high of $0.77. BHP's recent decision to pour a billion dollars or so into a nickel devlopment in the Phillipines might be having something to do with it (sentiment towards mining in the Phillipines has until recently been quite negative). ;)

Disc: Hold RCO, DYOR

ASXIOU
27-02-2007, 08:37 PM
Another record high close of 82.5cps. Somethings up for sure. Buyers are very keen. Should see some news soon if that's the case. :)

Disc: Hold RCO, DYOR

ASXIOU
22-03-2007, 02:29 PM
This one just doesn't want to stop.... Sellers are few and far between and whatever offers to appear are always snapped up pretty quickly. Anyone else folllowing??

Disc: Hold RCO, DYOR

Crypto Crude
11-05-2007, 03:33 PM
ASXIOU...
hey man...
had alook at this stock after your recommendation....
I like it...
with over 9 mill cash... flush with cash...
4million plus royalty from Oceania...
few other minor royaltys on the cards...
multiple drilling programs about to commence starting next month....
This companys looking real tidy, think your onto a winner...
I just can't work out what Short term returns could be, so it may have to be a patient sitter holder and watier...
[8D]
.^sc

Crypto Crude
12-05-2007, 09:08 AM
courtesy of stu
Royalco Resources – Overview

Royalco Resources is to raise $12 million through an underwritten IPO and list on the ASX in June. Royalco offers the balance of a highly prospective exploration land package in the Philippines and a royalty bank with identifiable future cash flows from two mining operations.

Augmenting raised funds with royalty streams ensures a well-funded ongoing exploration programme and significantly reduces the need to raise further capital for early stage exploration.

As part of the Royalco IPO, Oxiana is vending in its entire Philippine exploration tenement package in exchange for shares.

This allows a dedicated focussed approach to assessing mineral potential. Royalco will also be earning an interest in one of Phelps Dodge’s Philippine exploration interests.

Key Points

• Royalco is issuing 24 million shares at an issue price of $0.50 per share to raise $12 million. Shares will be offered to existing Oxiana shareholders. Royalco aims to list on the ASX in June 2006.

• Royalco’s main assets upon listing will consist of the Philippines exploration tenements of Oxiana, one held by a subsidiary of Phelps Dodge, and Royalco’s existing royalty bank.

• Oxiana’s Philippine explorations assets are to be vended into Royalco in exchange for A$5m in shares whilst Royalco is earning a 100% interest in Phelps Dodge’s property by spending US$1.45m. Both Oxiana and Phelps Dodge retain claw back options if a “company maker” size copper or gold deposit is discovered. Oxiana has a strong track record in dealing with junior exploration companies.

• Retention of Oxiana’s Philippine exploration teams means work continuity and intellectual property retention. The Philippines is a highly prospective country for exploration. The mineral endowment ranks amongst the highest globally. Exploration drilling to commence immediately upon listing.

• Royalco holds royalty right over 10 properties of which two have projected cash flows. Royalty revenues are expected to commence from Oceana Gold’s (OGD) Reefton mine in 2007 and Kagara Zinc’s (KZL) Mt Garnet mine in 2009.

Brief History and Strategy

Since incorporation in April 2001 Royalco has acquired rights to some 10 individual royalty streams of which 2 have imminent cashflow potential. The first royalties were acquired in November 2001 over projects in NSW. Further royalties were acquired in January 2002 and an additional royalty was created in 2004.

The strategy has been gain access to strategic, low risk investments in the resource sector whilst maintaining upside potential, which is a character of Over Riding Royalties (ORR) and Net Smelter Royalties (NSR). The benefit of a royalty bank is that it provides identifiable fundamental value and avoids risks associated with a single project company.

Other benefits of royalties include: the operator’s propensity to optimize mine life and metal recoveries, and no requirement of the royalty holder to fund further capital expenditure. In addition royalties are leverage to metal price movements, sometimes with escalators as in Royalco’s Reefton gold royalty.

Royalco has a database of some 500 royalties over various mining/exploration interests in Australia a Southeast Asia and may look to enhance cashflow through acquiring additional royalties.

Royalco’s royalty portfolio is presently heavily weighted towards gold, a commodity which is generally easily financed and developed meaning earlier royalty revenue streams. Royalco’s first source of royalty revenues is from the Reefton gold project, which is due for commissioning late 2006. Despite a portfolio bias towards gold, the second royalty stream will be from the Mt Garnet zinc and copper project.

Royalco’s royalty bank is now suitably mature and provides a solid foundation for taking on a higher risk exploration portfolio without jeopardizing the ongoing viability of the company. To this end Royalco has agreed to acquire Oxiana’s exploration assets and team in the Philippines, a deal that was initiated in

ASXIOU
24-05-2007, 01:11 PM
Old article but nice reading for Royalco die-hards like myself:

http://www.theage.com.au/news/barry-fitzgerald/mighty-ox-attracts-interest/2005/08/07/1123353208640.html

Hold RCO, DYOR

ASXIOU
18-06-2007, 10:57 PM
CSE Copper Strike (which i also hold) has had a nice little run over the last three months or so. RCO hold 500 000 shares in CSE and the two companies are basically run by the same board. CSE seems to have developed a following from a number of brokers who are regularly putting out research. Would love to see some of these brokers give some attention to that other undervalued play from the same stable.....Royalco.

hold RCO and CSE, dyor

ASXIOU
21-06-2007, 01:12 PM
Great announcement this morning. RCO have now created another 5 royalties over areas prospective for large high grade deposits of Gold,Copper, Zinc and even Uranium for virtually free (once the $200K is converted back into Syrah shares). Most interesting for me but is the last line 'Royalco anticipates both the creation and acquisition of additional royalty
interests in coming periods.'....

Also confirmed cashflow from Reefton royalty is due to commence from October.

Hold RCO, DYOR

ASXIOU
21-06-2007, 05:14 PM
Closed at all-time high of $1.00. Nice :)

ASXIOU
26-06-2007, 02:07 PM
Up 18%...

Yes it is on low volume, but this just goes to show how tightly held this stock is. There is alot to look forward to in the next few months with both cashflow from the reefton royalty set to commence as well as the long awaited drilling of one of their copper-gold 'elephant' targets at PAO (see yesterdays announcement). With very little stock to go around we could expect some very massive price appreciation on any sniff of good news.

Disc: Hold, DYOR

ASXIOU
09-07-2007, 10:39 PM
Phillipines drilling to start anytime now, starting to get very excited.....;)

Hold RCO,DYOR

Crypto Crude
13-07-2007, 01:48 PM
RCO has ended up being another great pick for you ASXIOU...
I was humming and harring about it back when SP was 80cents...
I choose TEX instead...
what I really like about this company is the portfolio of royaltys...
[8D]
.^sc

shasta
20-04-2011, 07:54 AM
RCO - March Quarterly

http://stocknessmonster.com/news-item?S=RCO&E=ASX&N=353668

Fundie rundown (previously ive posted on the LOW EV thread)

EV = ~$9m (incl $A14m cash)

Royalties in production increased from 2 to 4 during the quarter

RCO paid there maiden bi-annual 2c dividend during the qtr, yield @ 44c* is ~9%, RCO seems to bounce between 40.5 - 42.0c, so yesterdays lift to 44c may be a breakout?

Top 3 shareholders all with 10% + blocking stakes = 65% of the 57m shares on issue (Directors own 19%!)

I like the quality of the companies RCO gets royalties from, Vale, OGC (Gold), OZL & KZL

Disc: Nil

shasta
11-05-2011, 12:56 AM
RCO - ROYALCO COMMENCES EXPLORATION INITIATIVES-EAST AFRICA

http://stocknessmonster.com/news-item?S=RCO&E=ASX&N=354712

RCO has some exploration projects in its own right as well!

shasta
10-06-2011, 08:08 PM
RCO - ROYALCO CONTINUES EXPLORATION INITIATIVES-EAST AFRICA

http://stocknessmonster.com/news-item?S=RCO&E=ASX&N=356247

RCO @ $0.405 has an MCap of $21.3m, cash of $14.0m & an EV of just $7.3m

Dividend yield 4c/40.5c = 9.88% FF

shasta
10-09-2011, 05:15 PM
RCO jumps 40 to 44c & no ann?

Something in the wind come Monday?

Couple of days ago it was just 39.5c, so its bouncing around a bit it of late

biology12
12-09-2011, 10:17 PM
hey shasta,

any idea when the company goes ex div?

shasta
13-09-2011, 12:07 AM
hey shasta,

any idea when the company goes ex div?

RCO 2c dividend (fully franked) was ex 29th August & was paid 5th September

RCO closed at 46c