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7.3¢ red river resources limited

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Beachlover

2,297 Posts.

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22/02/21

13:46

Post #: 51214832
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Originally posted by PickEm: ↑

Been reviewing my fundamental belief in RVR and this list of yes's and no's formed FYI. Yes, it's come out one-sided. It is only a fundamental summary, not directly price related.

$120m M/Cap@ 23.5c - 2 plants, no debt, $15.3m in cash

Business Segments

RVR Exploration - 4 rigs turning for a junior, 2 at Thalanga & 2 at Hillgrove currently infilling, then a couple off exploring. No dilution, self funded

RVR Development - has its best ever pipeline of long life additions. Large resource bases so much in-ground leverage to price

RVR Production - the $150m saved on building cost equals lower annual depreciation, higher annual profits

Competitive Advantages

Yes - first class operating team
Yes - none of the usual free insider options that dilute for everyone else
Yes - world's best purity concentrates the refiners want, sometimes need
Yes - diversified risk : 2 Plants, moving to 2 Mines per Plant. Product risk spread over 2 precious metals & 3 bulk commodities. Silver currently 12% of revenue and turns cash costs negative

Other
Yes - self funding, the last equity raise was in 2016 (to buy Thalanga)
Yes - secularly low commodity prices on the turn? Are positioned for instant gain on a run ... no plant building delay
Yes - own & operate 100% of both plants and yes, they're in Australia
Yes - both plants are proximal to the exploration assets
Yes - Liontown (fresh sulphide) at 4.1Mt @ 5.9% zinc, 0.6% copper, 1.9% lead, 1.1 g/t gold and 29 g/t silver - 12.7% zinc equiv, 26% indicated. All processed using excess capacity, the Thalanga Plant will finally run at nameplate
Yes - Far West's ore body goes deeper. Will be drilled with underground rigs. Historically 3 out of 4 holes have become ore grade intercepts at Thalanga
Yes - Like Far West, we'd like an excuse to drill below 300m at Elanora, into the free milling ore below old workings. Elanora's higher gold may deliver a modern decline for practical drilling
Yes - gold was sitting on the surface and yes The Mets modern access is asking to be used
Yes - we will have a JORC12 resource of 1 million ounces of gold - from only about 100 historic holes plus our confirmation holes
Yes - lowest risk Hillgrove start up possible, dore gold only, gaining familiarity and team experience then push production to 150% of nameplate
Yes - we have a world top 10 antimony resource
Yes - we have indium and bulk tonnage silver upside
No - AUD rise
No - Royalty dispute
No - is a Price Taker

Small miners have consistently been dismal performers under the secular lowering of commodity prices. RVR has set itself up very well while surviving the low. The market is not quite ready to believe.

Expand

you missed a big one:
- share price performance in line with fundamentals? NO!

RVR Price at posting: 23.5¢ Sentiment: Buy Disclosure: Held
10 Upvote

0 Great analysis

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