Ann: Three Ways Drilling Update, page-33

quite a while.

I use technical targets based on math ratios for short term swing trading

38c favourite there in a short term ~3-6 month sense - but must see a catalyst uprate in silver or perhaps broad metals

but price targets are generally a nonsense for long term buy and holds. you just have to watch the technicals, relative valuation and metal spot action

metal stocks re-rate on metal type, grade, resource size and perceived viability

the higher metal prices escalate the more marginal projects typically outperform - esp large low grade or large high grade/high capex projects formerly seen as uneconomic or risky

eg DSV.TSXV - the ultimate leverage play for silver. SVL here is analogous

- RDM likewise but complicated by depth/capital demands and immature project definition, compensated for by estimated grade and polymetal value

the lower grade/least viable projects get sold off the most at low metal prices - but then progressively tend to outrun the safer higher grade sure bets o a % return basis the higher metal prices go ( but also have more extreme dropbacks when metal prices pull back)

thats why DSV acted as its did over past ~18 months. why RDM has pulled back hard

the best projects dont need metal prices to do anything other than stay fairly stable - those are the 'walk up starts'; so high grade, mining friendly and geologically abundant they can grow and attract funds at any time because smart capital knows they will become viable

eg DEG in gold

but those often arent; the best investor returns unless you are fortunate to have been in them at base camp - they stay overvalued for long periods and barely pull back

so in setting sp targets - the bigger a resource that's viewed as marginal or even not known about - the more upside it will have to progressive metal price uplifts

RDM's a big rocketship for that reason - but like a big rocketship it only achieves escape velocity with bigger thrust - ie substantively higher metal prices

but if and once it gets going it should accelerate progressively - especially if all 4 metals it represents are uprating in concert