Whilst the company is now a pretty diversified one - its success doesn't necessarily rely on Hillgrove alone. Just for argument's sake lets for a minute suppose that they get into difficulties at Hillgrove down the track - the initial stockpile is in itself sufficient to profit from - if it all goes downhill from there, they can still walk away pretty much unscathed, though I highly doubt that this is what management is planning. There's a lot of gold in them hills and human nature dictates that where there's a will there is a way (not forgetting gold around Thalanga itself).
A lot of money has been sunk into Hillgrove - RVR is fortunate enough to obtain the operations for no money outlay - a good way to start - irrespective of possible difficulties - perceived or real is yet to be seen.
There has been a fair bit of negativity regarding this company for various reasons - some perhaps valid, some unfounded. In any event, RVR with only a standalone Thalanga still warrants a higher MC than where it sits currently.
Happy to wait on and see how the company manages to produce the expected 30-50 koz gold p.a. - even if only the lower end of these figures are realized there may just be some pretty chuffed holders out there. Even if you take Hillgrove out, there will be a lot of silver to add to the kitty down the track. That to me is the beauty of being diversified. Best to you.
RVR Price at posting:
28.5¢ Sentiment: Hold Disclosure: Held
