Ann: Becoming a substantial holder, page-19

Investbest

Best to look at the big picture - while RVR raised a lot of money, given the exploration results to date it would seem that it was a not bad idea so they continue drilling in addition to bringing the plant back online.

Based on the article in the Australian last month which gave production targets you can see that if RVR meet production guidance then they should be making over $50 million easily based on current prices. For a company with a MC of $100 million and plenty of cash this represents good value. i.e. EV/EBITDA of around 2

Furthermore they will be operating the plant at about 50% capacity so if they can increase production not only will volumes increase but the profit margin should increase. i.e. there's potential for profits to rise exponentially.

	Column 1	Column 2	Column 3	Column 4
0				Convert to AUD
1	Metal	Tonnes/oz	USD per tonne/oz	0.75
2	Zinc	21400	2640	75,328,000
3	Lead	5000	2222	14,813,333
4	Copper	3600	5720	27,456,000
5	Gold	2000	1210	3,226,667
6	Silver	200000	17	4,533,333
7	Revenue			125,357,333
8	Profit Margin (120-70)/70		42%
9	Profit AUD			52,836,562

To calculate the margin I used the 70 cent cost per pound as per one of the broker reports. I therefore assumed a margin of around 50 cents which is around 42% of the current $1.2 per pound for zinc.

If I've stuffed anything up please let me know.

Based on these figures there's a lot of potential upside with RVR.

IMHO/GLTA