Regency Mines (LON:RGM) is a small company with a number of mining and exploration assets and a significant holding in Red Rock Resources (LON:RRR), which is valued at much of its own market cap. It appears to be on the brink of greatness.
For value investors the rather complicated structure and limited access to the City PR machine have left the share price below a realistic valuation but a number of recent developments will produce strong cash flows and force the City to take note.
It's far from risk free but its very complexity has resulted in risks being well spread across the globe.
The operation revolves around the Chairman, Andrew Bell, who has a large personal holding in RGM - an investment in RGM is an investment in Andrew Bell. I have seen him present at the Barbican and left impressed. He has a surprisingly modest demeanour for such a swashbuckling business. I think he experienced some hardship in the 1990's which I also rate a plus.
I was introduced to RGM and RRR last September 2010 and, as in truth I found it hard to understand properly, made a small investment first in Red Rock Resources (LON:RRR) and then RGM. Of course that has now multiplied 5+ times in about 80 days and I wish I had made a more confident move (is greed good?). I understand the situation a little better now (but not much better) and remain convinced the market understands it even less.
How else could the share price in RRR hardly move when they announced a CAD 10M profit selling a stake in Kansai? That was a significant percentage of its market cap and made RRR seriously liquid.
This could run and run and I would love to share views and opinions with others on this site.