mitis, it would be pretty unlikely to go up by anything like that amount. Anyway, they've certainly got enough for a mine life of centuies even at 50 million tonne per year by the time they finish drilling and mining. How long a mine life do people want? Key issues would be When can they start, some say 2015 at the earliest with CVRD maybe by 2013 at the earliest if their board gives the go ahead soon. What grade or yield (much less needed if open cut and therefore very small strip ratio) Do they need funding? The concern for many current mining hopefuls at the moment and the main factor to have driven share prices down. Does RIV even need much of a bfs given their cash position and the enormous amount of coal they appear to be sitting on? Access to rail and transport. Not too critical if the thermal is going to power plants on site and coking to Mittal's announced plan for a huge steel plant in Mozambique. They still can rail about 8 million tonnes but the issue that adds a nought on to the share price from here is if they can barge down the Zambesi.
Wherever you sit on the answers to these questions the base share price atm is underpinned by the resource size, with the potential for the sp to be multiplied by up to 20 depending on which of the issues go their way together with the coal price staying anywhere near these levels.
By the way, several million shares held by Opes appear to have been soaked up by the market over the last few days in a very bullish sign for the near future share price. I think Opes must be almost out of stock by now.
RIV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
