Revett Minerals Inc RVM

The Gold Report - "Mexico Mike" Kachanovsky

[scottiepimps59]

The fear that we are seeing in the market right now is very short term and cyclical. An exploration story may take years to develop. I don't think investors should stay away from the explorers. They just need to be selective because during those bearish times it is difficult for companies to raise money and their stocks are probably going to be out of favor. Investors should find the companies that they can be comfortable holding and wait until they find new mineral discoveries and get rewarded with a higher share price.
.
TGR: What are some producers that fit that bill?
.
MK: I just returned from a trip to Montana to see Revett Minerals Inc. (RVM:TSX; RVMIF:OTCBB). I was floored. I was impressed at every stage of this operation. The company is a silver and copper producer, so it has leverage to base and precious metals. Its balance sheet is strong. Its mine is absolutely superb. Its mineral inventory is growing. Environmentally, Revett is a textbook operation in how to run a clean, efficient mine. The stock price is trading at a value range right now. I started accumulating the stock just in the last couple of weeks. I think it has a bright future.
.
This is exactly the kind of company that I am looking for to provide safety in my current investment, provide upside for the future, and have full leverage to what I believe is a long-term bull market for the metals.
.
TGR: The company also has another more robust project called Rock Creek. However, Revett's involved with litigation regarding that project in a district court. A ruling is not far away. If Revett were to get a favorable ruling on Rock Creek, it could materially change the stock price in a hurry.
.
MK: I agree. I think Revett has done everything right. It is starting to win over some of the environmental groups because of the attention to environmental stewardship that the company demonstrated in its current operation. It has proven that it can run a mine that has very minimal disruption to the surrounding wilderness and community.
.
At the same time, Revett brings in great benefits to a part of the world that doesn't have a lot of economic opportunity or high paying jobs. My feeling is that the company will be successful in getting permitting for Rock Creek. However, I minimize the impact on the actual operating results of the company because even if it had approval today and it was able to commence development, it is a very large project and it is probably at least two years down the road before it would see any operating return. Whereas the current Troy Mine has a world-class resource that could still be producing in 20 or 30 years.
.
It is nice to have an even better prospect to look forward to, but I think it is compelling just on its current upside potential.
.
Read More:https://www.theaureport.com/pub/na/11063