The main thing for RVR is to still be around when the effects of mine closures or delayed development show through in improved commodity prices.
Personally I'm supprised management haven't come out with an update given the severity of the pandemic disruption, IMO it has to be having a material effect on income. The only reasons I can come up with is they are either in process of doing that or the quarter is better than I expect. Given the production report and commodity prices I'm struggling with the latter even with TC's coming down.
They have no debt ,cash on hand and a gold prospect in the wings so it certainly puts them in a better position than many and gives them some options.
My personal preference given a JV or a CR are both dilutionary, is a CR and a decent one at that while money is still around, put Thalanga on C and M and get started on the waste piles at Hillgrove asap.
As we have existing contracts for Thalanga they would have to use Force Majeure to break them or better still speak to them nicely. Losing money or even just breaking even at Far West is just using up good ore that is likely to have considerable value in the future. It is tough for staff and contractors but this is no ordinary situation and has considerable unknowns.
Cheers Whisky
RVR Price at posting:
6.6¢ Sentiment: Hold Disclosure: Held
