Spot on - 20 year old kit that churned away. Very little...

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slc4me

4,306 Posts.

17/06/17

10:28

Post #: 25331403
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Originally posted by kemj ↑

It is not a new plant. Provided refurbishment has been done properly then start up should not pose an issue.

A major advantage is the simplicity of the process. No power plant to worry about, reagents simple to deal with and very few unit operations.

Of these the difficult ones are likely to be the mill (always a pain in the a*** ) and the LAROX filter (these can be real pigs but can be fixed easily enough - takes a bit of skill to get the settings right - still the sales people are pretty good).

Thickeners etc provided the rakes have been fixed properly and tanks agitators balanced etc would pose no problem. It will be mostly up to operators to not bog the bloody things. I any case these are easily fixed.

As long as the plant management team are not complete fools it should be a doddle.

The main issue is getting enough ore cheaply and of high grade. Higher the grade the better to kick off.

IMO the real upside in this stock is the possibilities for life extension through finding new deposits locally.

As for POZ, yes it will drive the price without doubt.

However one of the nice things about this stock is it has no debt. When POZ goes up laughing all the way to the bank. When POZ goes down, should be protected by it contracts etc but also by the ability to turn down production thereby saving on variable costs but also preserving the deposit for better times.

There is no financial ghoul present to bleed them dry as there is with most startups.

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Spot on - 20 year old kit that churned away. Very little technical risk compared to a new plant. Yes things will break down and the odd bottleneck will pop up but all very fixable. Mgt and crew are very experienced in Zinc. You will also find most of the on the ground workers were previously working at Thalanga when Kagara were running the place.

Things went pear shaped in 2011/12 when the POZ plummeted and Kagara could not service the debt they had. Under the new management RVR is debt free and the POZ is substantially higher than when the operation shut down. The current management has also spent considerable time in drilling and exploration to extend the life of the operation. All looks very promising and I expect the odds are now heading in the right direction that a 15 to 20 year operation can exist here.

All good IMO but DYO.

Cheers

slc4me

RVR Price at posting: 19.5¢ Sentiment: Hold Disclosure: Held
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