RRM information In early 2004, RRM traded close to $1.00 and boasted an impressive market capitalization of nearly $25 million. At that time, according to several analysts following the company, Ross River was considered to be undervalued. These observations were made when the price of Gold was $410/oz. the value of copper was “soaring” at $2.00 per lb.
Putting this in perspective today – Gold is hovering around $1,100/oz, Copper at $3.40/lb and Ross River’s market cap is roughly $3 million; less than half of what they spent developing the El Pulpo property to date. The investment opportunity, from our perspective, lies in the explanation of what happened since 2004.
So what happened – why is the share price so low? Nothing unusual, considering the circumstances – RRM, like most junior explorers, was severely impacted as a result of the capital markets retreating during the financial crisis of 2008/2009. As a consequence of the universal collapse of share prices world-wide and the inability of companies to access capital, those with high valued exploration properties were forced to cut expenditures and take a wait and see approach until the markets recovered.
Ross River shares were halted from trading between May 12th and November 9th, thus creating a unique situation whereby its share price remained locked while other companies enjoyed the market recovery. The company has since corrected the situation, filed appropriate financial statements, and have had their shares reinstated for trading. However, steps have not been taken to bring investor awareness back to the opportunity – until now. This promises to be a very exciting re-commencement for current and future shareholders.
A quick scan of press release headlines from 2003 to 2007 (accessed from the company’s website) will give you an indication as to the potential opening up on the property.
Let’s drill down and get into some numbers and geology. Up until the company halted exploration in late 2007, six porphyry copper and three gold/silver vein targets have been identified on less than a third of the property explored. The grades below clearly indicate something significant is occurring throughout the property. The following map provides an excellent overview of the project’s emerging potential.