RVR's share price very much correlates to the price of zinc. It quite obviously explains the early highs, the steady decline and the recent recovery - along with the other metals RVR produce, which move in largely the same cycles due to world events outside of RVR's control. I don't believe there can be any argument here.
The major disconnect early-mid 2019 was while RVR was posting record profits (due to a high zinc price), but I'm not sure how it is management's fault if the market doesn't price the company in line with its results? They can only focus on the company's performance.
The minor disconnect late 2019/early 2020 was when zinc treatment charges were almost 3 times as high as they are today, at the same time RVR was transitioning to the new mine at Far West. It's competitors were also suffering large losses at this time.
Regarding Hillgrove - you don't acquire a distressed asset under care & maintenance and simply switch it back on the next day. There is a process of developing a restart plan, assaying resources, refurbishing equipment, hiring staff, etc.
From the first time RVR announced the planned restart of Hillgrove back in January 2020, the target production date has always been "before the end of 2020", which has been reaffirmed multiple times since, including today.
This is a similar timeline to when RVR commenced refurbishment at Thalanga in September 2016 and commenced production by September 2017, on time and under budget.
I remain a big fan of this management team, and am of course very happy - but not the least bit surprised - by today's results.
As I'm write this, the AUD zinc price is currently +9.5% and copper +4.5% compared to their September quarter averages. Looking forward to a strong December quarter and first production at Hillgrove.
