RM: The Whole Package

MICHAEL GRAY, Macquarie Research (03/09/2010)
"Key brine asset strategically adjacent to the U.S.'s only existing lithium producer—RM holds a 100%-interest in its flagship Clayton Valley project, which we believe has high exploration potential to document aquifers with economically viable brine chemistry and volumes (low Mg:Li ratios and commercially viable Li quantities). The proximity to a major producer in a pro-mining district lowers the company's exploration and development risk, and positions it well to serve the needs of the potentially emerging EV market in the U.S.

Geographically diversified brine asset strategy lowers technical risk with prospective S. American salars—RM has 100% control of both the Diablillos and Salina Grandes early stage brine projects in NW Argentina. In historical, albeit limited, sampling, the two brine assets have documented high-quality brine chemistries, which have been supported at Diablillos by RM's recent, early stage shallow brine sampling program that returned positive results averaging 858 mg/L Li, 9480 mg/L K, and a low 2.57 Mg:Li.

Attractive valuation—We believe RM is well diversified with multiple brine assets. We are initiating coverage of Rodinia Minerals with a BUY recommendation and a 12-month target price of $1.80."

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