Management have had their issues and it comes down to communication which ultimately has turned some people away and made some posters (including myself) at times angry. We have had a run of bad luck the past few Q some things that were out of M control yet they could have conveyed to us earlier. The bad luck stemmed from a break down in production due to the mill requiring some repairs which i guess happens in mining, that tied in with the lower base metal prices started to erode our SP. M probably made the mistake for trying to mine WEST 45 our first mine a bit to long as they have admitted the grades at the surface were lower than expected which lead to lower grade input into the mill and has created a few bad Q as its been tied to Far Wests development ore. Thats been the main issue and the SP has been punished heavily for it with base metals well out of flavour. The good thing is Far west is now in full swing and its likely liontown our next mine is in the process of being prepared for development as we speak. This is our mine area in thalanga which also has waterloo and an additional 600 sqkm of terrain to explore which is rich with VHMS systems and gold rich areas around chartered towers north queensland. So we have potential to find a nice gold deposit in that area of the world and additional base metal systems and the company has expressed their interest and targeted some areas likely to return some nice grades refer to recent announcements. This bring us to our second mining area some 400+sqkm of land in hillgrove 30km outside Armidale. We acquired through script and are about to start mining in Q4 of 2020 with 15koz of gold sitting in a waste pile 400m from the mill ready to be put through. You do the maths but its close to 30-35mill in rev at current gold prices which they hope to feed through the mill in a year (our market cap is only 33m). This tied in with mining areas already developed and great ground to discover new systems bodes will for a future where gold prices look like they will remain high if not continue to go up. So yes we have had our troubles with M and the market seems to have lost faith with RVR however if you believe that going forward they can turn this bad fortune around (may 5th conference call we were cash flow positive at current may 5th prices which we are well above now) and want exposure to a massive base metal resource as well as huge gold potential upside trading at a 50% discount to book value then this company is worth a punt IMHO at these levels. Please feel free to watch the latest presentation with the link being found on their website and go and read up about the potential at hillgrove and the mining plans moving forward at thalanga. Theres also the issue of a potential cash raise which i personally believe will not occur due to that waste pile providing funds for Hillgrove to start getting into full swing as well as credit lines still not fully drawn upon, this tied with the fact we should be CFP this Q further supports my thesis.
ALL IMHO please DYOR and good luck to all that hold or who are thinking of holding.
RVR Price at posting:
6.4¢ Sentiment: Buy Disclosure: Held
