Let me draw a comparison between two Australian stocks. I hold both long term, so I am rather unbiased. Both company are debt-free and have a decent amount of cash in the bank. One of my preferred underrated stocks is Talisman (TLM). Greenfield explorer, experience team and has the unfair advantage (re other explorers) of royalty payments (we are talking millions!) which will minimize the risk of a CR. Drilling results are expected to be published soon. No established resource base, pure speculation on exploration success and management. MC 41m A$ RVR has two mills running. At least one of those is cash-flow positive (Thalanga). Having established resources (M&I) and a situation with regard to Herberton that is comparable to TLM. Possibility of getting Hillgrove mine to produce decent profits within the next 12 months. Hillgrove is a world Top 10 Antimony resource. Management struggles with one off royalty payment on (parts of) Thalanga and to get Hillgrove to name-plate capacity at a profit. Exploration results at Thalanga and Hillgrove are decent, not superb or exceptional so far. MC 94m A$ So what is the point about RVR having roughly double the MC of TLM? Chances are high from my perception that TLM will have the same MC within the next 6 to 8 weeks as drill results are pending (over 2000m). RVR still is (and possibly will be for a considerable time) a hidden beauty. It is not prince charming that has to kiss her awake but management has to be more consistent with "over-performing" its scheduled and communicated plans even if the challenge is huge to reopen failed mines.
RVR Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
