In a comprehensive note released in early May Broker Allenby has boosted its absolute valuation of Rome Resources (RMR ) from US$100 million to US$146 million.

That equates to 1.31p per share, following the issue of new shares in the recent equity raise. 

Rome is currently capitalised at just under £30 million, following a strong upward surge in its share price that began in December. 

The shares have more than doubled since then, and are now approaching 0.4p.

Allenby attributes that strong performance to “bullish newsflow” from Rome’s Democratic Republic of Congo assets.

“The key factors have been highly encouraging drilling results, the deal to significantly increase Rome’s stake in the Bisie North project, a very favourable tin commodity price backdrop and intimations concerning strategic development,” said Allenby. 

“Rome is currently very much a play on the pending mineral resource estimate. A quantum upgrade with tin equivalent resources of greater than 50,000 tonnes could prove highly influential for the share price. Previously we have ascribed a valuation to Rome of US$100 million post a pre-feasibility study. This was based on contained resources of approximately 200,000 tin equivalent gross and around 100,000 tonnes net allowing for Rome’s ownership interest. We also assumed a tin equivalent grade of at least 1.5%. The implied valuation coefficient of US$1,000 per tonne is plausible based on our benchmarking exercise and given that a resource of 200,000 tonnes gross with a grade as indicated would comfortably support development at anything like current commodity prices. It should also be noted that 200,000 tonnes, is consistent with Rome’s target exploration range for Bisie North.”

The broker also highlighted the recent addition of Canadian assets to Rome’s portfolio as providing long-term upside.

 

View from Vox

 

Rome has been working steadily away at Bisie North for a good while now, consistently building its knowledge base, and soon its resource base too. Indeed, there was a time, before the recent uptick in sentiment, when Rome was virtually the only junior in London that had drill rigs turning at all. So in a sense, it got to the party early with its exploration, and now looks like it’s about to deliver a serious project to its investors, as the resource estimate nears and a preliminary feasibility study looms. Will it get taken out before that? It’s not out of the question, given that Bisie North is near of the world’s major tin producing mines, and worth noting that Allenby says the company “is currently very much in play.”