slowly but surely...

I have just completed some research on JRV, including looking very closely at their assets and recent history...

I have also read back over many posts here and on other forums, to get an idea what the market thinks.

The concensus would appear to be that JRV is a dog...to be avoided at all costs.

But is it?

Clearly, if you bought prior to the recent issue at .005c, (and didn't participate), your investment is under water, but those who did participate, or who have bought very recently, are currently up 40% on their additional investment.

But is this as far as it will go?

It would appear their track record is not the best when it comes to value adding, with dilution their only real acheivement of late...add the recent manipulation of the stock, which obviously trapped many traders at higher prices...and you can understand why many have a very dim view of JRV.

So why am I interested?

Well...as a long term, quality investment I'm not interested at all, but as a short to mid term trading opportunity, on a stock that has a real chance of a massive re-rating, I am very interested.

So where will a re-rating come from?

Their current gold production is rather modest, but is increasing and will provide valuable cashflow to the company as more reserves are added to the pads...though I'll admit, given current reserves, it will not be enough to add much to the shareprice at this stage.

Importantly however, this gold production should at least underpin the current shareprice and put a stop to any further dilution, while they move closer to the possible development of their major asset...the Young nickel project.

This is where I feel they have their only chance of effecting a re-rating by the market.

Young is huge. It contains over 1,600,000t Ni and
170,000t Co, using a 0.3% Ni cut-off...the problem however, is that it is low grade (.58%) and will be difficult to get at economically without major capital investment...something JRV will never be able to do on their own.

In walks the Chinese with a cheque for $1b to develop the resource and construct a processing plant, leavcing JRV a tiny 2% free carried position....and now we have a different ball game!

Just 2% of 1,600,000t nickel is about AUD$670,000,000...then there is the cobalt!

Obviously their are costs to get all this nickel out of the ground, which is why JRV's shareprice is languishing under 1c.

But given the enormity of Young, even the slightest indication that it may move to the next level, would have a major effect on the value of JRV shares.

I'm in for .007, with small change only though!

The fact that JRV have flagged Chinese interest in Young, I feel, could be significant.

Cheers!