| 1 | | RVR (Red River Resources, flat 7.4cps, m.cap Am, Zinc: Producer): Mike Millikan - RVR has reported improved production in the MarQ from the Thalanga Operations, with increased ore mined/milled for higher base metal concentrate production qoq.
- Ore mined 91kt (+52% qoq) in the quarter at a grade of 3.5% Zn, 1.3% Pb, 1.1% Cu and 0.3g/t Au (~9.4% Zn Eq, up 4%), grades largely in-line qoq.
- Processed throughput for the quarter was 84Kt (+27% qoq) at a grade of 3.3% Zn, 1.2% Pb and 0.8% Cu (~8.5% Zn Eq, up 1%), with improved zinc, lead and copper recoveries for 14% more zinc concentrate, 28% more lead concentrate and 48% higher copper concentrate production qoq.
- Zinc concentrate production of ~4.3kt (+529t qoq), lead concentrate production of ~1.1kt (+241t qoq) and copper concentrate production of ~2.3kt (+750t qoq).
- With concentrate grades slightly higher qoq, and assuming standard payable terms we would estimate payable zinc metal production of ~4.4Mlb (+19% qoq).
- We had previously forecast slightly lower throughput but slightly higher grades for similar zinc, lead production achieved, but pleasingly more copper concentrate production was achieved, and we anticipate higher revenues on payable terms, though base metal prices were soft during the period.
- After capital development and exploration expenditure (which we anticipate should be lower qoq) we get a negative site EBITDA (but improved on the DecQ). RVR had cash of ~A.9m at the end of the DecQ, which we anticipate will be lower qoq. RVR was debt free at DecQ end with USm available in the form of debt facility.
- The full MarQ will be released before the end of the month (April).
- We have a Speculative Buy recommendation on RVR, albeit with an increased risk outlook in the short to medium term to due commodity price weakness/earning impacts.
- Red River Resources (RVR) - 20 January 2020
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