It has been very clear for some time what RJ is doing here. A similar strategy has been employed by Mandalay over at the Costerfield mine. RJ mentioned on a number of occasions that he is not interested in a huge resource, with the focus being on grade. Instead, and like Mandalay, he will have the company owned rig constantly drilling and increasing the resource, enough to keep the resource and LOM at a buffer. Anyone expecting a long LOM on paper here, will be disappointed, I believe. While this means consistent cash flow if it can be executed correctly, the downside is that the market may not ascribe an added premium to the company valuation. Excited to see what the next 6 months brings.
Cheers, PS
VTX Price at posting:
26.5¢ Sentiment: Buy Disclosure: Held
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