I think its safe to assume 3rd Wave is not increasing its stake in RVR with the intention of losing money, they have a lot of experience in the mining sector and are likely taking a long term view with the expectations of above average growth, not instant gratification. They may also be looking at an eventual T/O.
So what are they seeing that some others aren't, at a guess they look behind the present issues plaguing the mining sector and look at the overall assets , the management of them and future commodity prices. Good management is as much about dealing with issues as they arise as anything and there have been plenty of them. I doubt they have any particular concerns about management, running small mining operations requires a certain skill and has been risk managed well IMO. They certainly won't give a stuff about constant updates, the company will perform based on fundamentals and commodity prices, the shareprice will reflect that over time.
The assets are an obvious attraction in a World where many resources are getting harder to find and security of supply is becoming a focus, RVR doesn't have large resources with the exception of ANTIMONY but has secured them at bargain basement prices, that has kept it out of any serious debt issues, using the facility avaliable prudently.
Apart from the low MC relative to potential , I suspect Hillgrove would have been the main attraction for them, with an eye on Herbeton and Thalanga as a steady long term producer but with an overall view of firm commodity prices over a longer time frame.
RVR has been hamstrung at Thalanga to a certain degree by small deposits with short LOM and small sweatspots , trasitioning to Liontown will increase LOM considerably and with scope to grow it. It won't be a large producer but should be a steady and more consistent one.
Hillgrove is the mystery envelope which has yet to be opened but the paper knife is being sharpened and has the promise of some interesting content.
Fast forward 12 months and its likely we will have two plants running a desirable range of commodities at a combined throughput of 650,000 tpa upwards and probably with no debt. With Liontown starting as an open pit they may be able to run the thalanga plant at a higher rate. So plenty to look forward to and the outcome will likely to be influenced as much by commodity prices in AUD's as anything and management have no say in that...will there be drama's along the way, almost certainly...as always there are no guarantees, RVR runs Companies extracted from the knackers yard so will always live on the edge...
Cheers Whisky
RVR Price at posting:
22.3¢ Sentiment: Buy Disclosure: Held
