article on riversdale

NOW, over to Mozambique, where the low-flying Riversdale Mining has again surprised on the upside.

Daily Assay can remember when Riversdale, run by former Glencore Australia boss Michael O'Keeffe, was a junior with some big African dreams and a desire to keep things at a low profile for fear that the majors would swamp the company.

That was when the share price was around $1. Today, its shares slipped, somewhat surprisingly, back to around the $9.50 level, after Riversdale announced a whopping inferred resource of 1.2 billion tonnes for its Mozambique coal project.

O’Keeffe believes that, of that amount, about 720 million tonnes have the potential to be dug out via open-cut methods. Even better is that some of the coal is of the coking variety with 10 per cent ash.

But get this: the resource is only from the northern section of the Benga Licence that covers less than 2 per cent of Riversdale’s total ground holding in the region.

And that should have the Indians in particular licking their lips. Tata Steel are already on board with a promise to help fast-track mine construction and marketing.