RIV 0.00% $16.20 riversdale mining limited

some coco nut fund just shorted 1m riv.., page-15

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    Difference is that CZA has 461 million on issue with $225m cash. Gives it a cash backing 48.8cents.

    RIV is 191m shares on issue with around $345m cash. Gives a cash backing of $1.81.

    RIV is effectively cheaper removing the cash backing from the share prices. I'm using cash backing as a basis as they market is almost sucidial at the moment and has no way of defining "fair value".

    RIV has a larger resource and resource potential, however it has more risks. RIV requires a huge amount of capital to start its production of coking.

    CZA is about to begin thermal production (another 30m required). It will then fund its coking coal projects via the current cash and cash flows from Mooli's thermal. It also suffers infrastructure issues with its 2 coking coal projects, however no where near as expensive as RIV.

    I like both these stocks. I was lucky enough to pick up a small parcel of RIV below cash backing, and hold a small parcel of CZA.

    Goodluck guys! Might see some more insanity next week with RIV trading below cash. I don't think Talbot will be able to buy much more. I'm sure we will see a final notice from him soon enough.
 
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Currently unlisted public company.

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