“The Project” — Philippines nickel mine and a desperate superpower

By Travis Johnson, Stock Gumshoe, April 19, 2007

August 11 Update: just a note, for those of you who watch the nickel markets at all or read Barron’s and saw this weekend’s note that nickel has fallen from grace significantly (article was entitled “Nickel’s 15 Minutes are up“) … that has clearly been part of the downtrend in this company’s shares after it spent a fair amount of time near the top of the Gumshoe scorecard. If you think Nickel will recover on stainless steel demand, or you think this firm has potential even at lower nickel prices, might be a good time to check up on this one again if you missed the runup last time. Shares are at 30 cents now US, after getting well over 50 cents just a month or so ago. Of course, there may be other skeletons in this closet, too, I don’t know this company well.

Here’s the original post from mid-April:

This email, and the solution to it, were sent in by a couple readers — and I appreciate it!

Here’s the story: this comes from Chris DeHaemer of Red Zone Profits, which is yet another Taipan newsletter. And he’s got a 22 cent company that’s restarting a secret “Project” in the Philippines to mine for nickel, which China is desperately seeking.

The implication is that there’s some secret deal between this wee company and the Chinese to bring this stuff to China once mining commences — which they think will be very soon.

Here are some quotes from the email:

“Since 1975, a highly secure mining and exploration venture known as “The Project” has remained dormant on a remote island in the Philippines, locked down and kept tightly under wraps by its original owners. Deemed “no longer profitable,” operations were shut down and the site was abandoned.”

“But in 2003, entry was quietly granted to a small Australian mining company. Project owners allowed this tiny company complete access to the site. It was permitted to run tests and take samples of the soil and surrounding grounds back to Australia.”

“The reason for this — as this small mining company discovered through its research, is that The Project’s site is home to one of the world’s largest and only unexploited reserves of a precious metal that China is absolutely desperate for”

And there are a few specific clues:

33 Million tons of 95% pure nickel.

Trades for only 22 cents per share and has the rights to restart The Project.

Something about the project commences operations this summer, which is when “I fully expect this Australian mining stock’s price to hit upwards of $2 in a matter of months.”

And in case you can’t do the math: “Just that small price increase of under $1.80 per share translates to an incredible 809% gain for early investors! “

And to make it even mor enticing, they have this appetite-whetter among the qualifications for investors in this company and subscribers to the service, which always makes me smile:

“Qualification No. 2: You must keep the information that I send to you regarding The Project and the opportunity resulting from it — strictly confidential. Due to the small size of the Australian company involved in this opportunity, I must insist that you keep this information completely to yourself. No sharing with friends, even if it means having to keep a lid on your great success for a little while! Back in World War II, America became familiar with the phrase “Loose lips sink ships.” Well in our case, they can sink big gains too!”

Ah, if it’s that big a secret … it must be worth tons of money! The subscription will run you $795 at the “special introductory price” approved by the mythically powerful newsletter editors.

Or the Stock Gumshoe, thanks to his mythically brilliant readers, will tell you that this 22 cent Australian powerhouse is …

Rusina Mining N.L. (RSNAF.PK on the U.S. Pink Sheets, RNL on its home exchange in Australia).

“The Project” is the Acoje Mine in the Philippines, on the island of Lujon. The project, at least the nickel part of it, is a 50/50 split between Rusina and a big filipino company, DMCI Holdings, that it sounds like will do most of the work. It has been a nickel mine before, though that stopped in 1975, and it was for decades a big chromium mine, with platinum, palladium and lots of other goodies as well. It has indeed been dormant for a while.

The shares did change hands for 22 cents back on April 9 when this email started circulating, and it has gone up about 10% since then, you could have picked it up today for 24.5 cents a share. It’s traded at pennies a share like this for several years, after a fall from grace that brought it down from the $10 range … but I don’t know what that fall was, I assume a failed project of some kind.

Here’s an announcement that matches the specifics, and confirms that the third quarter this year is when operations might commence, pending environmental and other reviews. I know even less about this one than usual, since the solution was sent in by a few readers and I just double checked and confirmed it … so do your own due diligence and let us know what you think. They do have another mining operation in Western Australia, but otherwise the cupboard is pretty bare — it really is Acoje or bust for them, and as we all know, these stocks don’t trade for a handful of pennies because the world is in love with their prospects. But you never know …

Are you getting our free Daily Update
"reveal" emails? If not,
just click here...