High grade zinc assays delineated by Red River Resources
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Emerging zinc producer, Red River Resources (ASX:RVR) has announced further high-grade assay results from its Thalanga Far West project, part of a thick high-grade deposit which is expected to be the second mined after West 45 as management prepares to commence production at Thalanga in the second half of 2017.
Exploration results released today included intersections of 14.8 metres and 20 metres grading 28.1% and 17.3% zinc equivalent respectively
The Thalanga project was acquired from Kagara Zinc in July 2014, prompting a doubling in Red River’s share price to circa 10 cents with the company going on to trade as high as 29.5 cents on the back of promising exploration results.
Red River’s share price trailed off in 2015, but following further exploration success, clarity regarding recommencement of production and a surge in the zinc price its shares hit a high of 27.5 cents in August 2016.
Should management meet its production commencement goal of the second half of 2017, Thalanga will be the next new zinc project to come into production in Australia.
Analysts at Hartley’s last ran the ruler across the stock in November saying, “Red River Resources remains a compelling investment opportunity with multiple near-term catalyst for share price appreciation”.
The broker has a speculative buy recommendation on the stock with a price target of 44 cents, implying significant upside to the company’s current trading range.
Hartley’s is forecasting maiden zinc equivalent production in fiscal 2018 of 15,700 tonnes, more than doubling to 33.4 million tonnes in fiscal 2019.
Using a zinc price of US$1.13 per pound (spot: US$1.24 per pound) and an AUD:USD exchange rate of US$0.72 (spot: US$0.747) the broker forecasts a net profit of $12 million in fiscal 2018.
As a means of comparison, Hartley’s projections are based on an Australian dollar zinc price of $1.56 per pound as opposed to the current spot price of $1.66.
However, it should be noted that It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.