Enterprise Value of 2.5 M$ with upcoming PEAGood morning.
Has been quite a ride this week and this is supposed to be the calm season, so curious to see what September brings.
Some observations and comments.
1. We closed the week at 5 ct , giving a market cap of around 4 M$, taking into consideration our cash position of 1.5 M$ ( see last NR ) , resulting in an EV of 2.5 M$ , this seems to me as extremely cheap given the defined resource , the upcoming PEA ( actually more a feasability study ), the expected low capex/low opex operation and the plans for going in production the second half of 2017
2. Regarding rollback, there has been plenty of discussions both in favour and against, for me being a quite new shareholder , I think this is a good step in moving forward, management has offended some shareholders who decided to leave and created opportunity for others to get in or to increase their positions, no matter how you view it , both sides should agree on the fact that the company , the project and the fundamentals have not changed
3. Also a lot of discussions and arguments on the board this week on why the timing for the rollback was wrong , in contacts with management , I view Sean , also taking into consideration his background and education, as an intelligent guy who , without doubt, studied the consequences of different possibilities for timing the rollback, the fact he chose this moment , means to me that he has a very important reason for doing so, my guess is that , since he is already working on preparing the funding for the capex, he is in contact with multiple parties that could potentially be interested in participating but who also want in , in anticipation of the PEA and knowing the fundamentals , but being blocked due to our penny stock status
4. No company nor their shareholders like uncertainty, discussions regarding rollback however will come to an end since RRS will formalize rollback next week, so just a matter of days, so we can look forward to the confirmed PEA for September , which I expect more towards the end of the month
5. Comparing to other companies I hold or held shares in, RRS and their management are communicating well, regularly and consistent, and so far they keep up with their promisses regarding timings and deadlines , and they are also very accessible for direct contacts
6. For such a small company , they work with top of the bill consultants in moving the project forward, names like Anzaplan ( metallurgical work ) , Met-Chem ( resource and pea ) , Roskill ( market mapping ), the quality of their work is a strong validation for the silicca project and an additional strong point to convince new, larger , long term shareholders ...
So this concludes my morning work and will now get back to enjoying my saturday morning
Long RRS