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22/02/21
14:08
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Originally posted by PickEm:
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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 cashBusiness 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 fundedRVR Development - has its best ever pipeline of long life additions. Large resource bases so much in-ground leverage to priceRVR Production - the $150m saved on building cost equals lower annual depreciation, higher annual profitsCompetitive 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 negativeOther 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.
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Great post and it would be nice to see a few more like this! Just to add to your aud rise as wassa pointed out this morning or whiskey that our treatment charges are paid in usd so while it may be rising our commodities ( apart from gold) are outperforming this rise and continually adding to bottom line while our treatment charges drop further! I just thought I'd like to add that but other than that a great post and I look forward to the eventual rerate patience everyone! imo dyor gltah