Post by
digingdeep on Mar 02, 2014 5:48pm
PHASE 2
Dead silence and no comments. Its frustrating that only cheerleaders post here trying to pump this stock, and no analitical or factual comments.
Few weeks ago Alberto Arispe, CEO of Kallpa Securities, RIO´s sponsor, made a presentation to a small group of housewives and retired old people, recommending to buy RIO at $3.5 target
price, as PHASE 2 project is under way. He also distributed a brochure with a list of juniors that Kallpa sponsors. In any case and in any place of the brochure, Kallpa put a foot note or make a reference about the existence of a possitve social due diligence made by the junior company, or if the company has a social license, or have secured surface rights or have signed an agreement with the peasants for exploration or mining activities. The brochure does not mention, in any case, a recommendation from Kallpa. All the buying recomendations he made were made verbally to the attendance.
However, I have to say that most of that juniors have social problems,conflict with the peasants, cannot access to surface rights or exploration permits or are run out of cash.
Last year same sponsor, were calling its clients recommending to sell other stocks and to buy RIO above $5.00 price level, since a take over and PHASE 2 was inminent, while thousands of shares were dumped at that price. Nothing of that happened. I cannot sure how they got this info.
But what seems to be clear to me is that :
1. PHASE 2 has no construction schedule yet;
2. Surface rights in start pit PHASE 2 are not secured yet (see RIOs last presentation slide 24 marked in pink);
3. RIO stated that will used the Calaorco Open pit for tailing pond only when is depleted - see PR january 6 (however indication of the tailing pond and waste dump has been removed in last presentation feb 2014);
4. Exploitation in the Calaorco open pit will continue for the next years (As I read from the last PR feb 24) ; and therefore I understand that cannot be used as a tailing pond for PHASE 2;
5. Unless PHASE 2 has other location for tailings pond, there is no tailing pond location as long as Calaorco open pit is under mined;
6. PHASE 2 has no finance yet.
So again, my question is how the Calaorco new oxides reserves and continuity of operations will affect PHASE 2 and teh waste and tailings pond?
Is the $3.5 target price considering PHASE 2?
I think still lots of information is needed.
Comments appreciatted,