It's a hard to please investor that is moaning about a stock that has generated a 130% return in a single year (10c to 23c). The chart looks just as you'd expect, IMO, for a company at this stage of development.
The Zn sector, and in particular the concentrate component (tight supply), is looking very good for RVR. There is no hurry in locking in an offtake deal that is not maximising the upside from this situation - it's been a tough several years for miners, now that the boot is on the other foot RVR needs to make the most of it.
The company is entering the riskiest part of their development process - having sunk the capex to fire up the mine again and starting to incur increasing opex, all the bottlenecks and unanticipated issues will now emerge that will drain cash and reduce planned throughput prior to revenue being earned from finished product.
5hareholder also has a very good point. VMS deposits are notoriously difficult to mine (and find). It is really important that RVR understand the geometry of their deposit(s) to mine them efficiently. Anyone who remembers the BSM disaster at Fossey will atest to that ... their deposit had a massive, unidentified hole right through the centre (like a donut) ... they ended up mining worthless dirt and effectively went bankrupt (without actually doing so).
Great potential here but the company is at a critical juncture. Patience will be rewarded I think.
Cheers
John
RVR Price at posting:
23.0¢ Sentiment: None Disclosure: Held
