"Rye Patch Gold (TSX.V: RPM) (OTCQX:RPMGF) is a gold and silver exploration company with projects in Nevada and a market capitalization of ~$19.2 million. It owns exploration-stage properties in Nevada that include extremely promising holdings in the Cortez Trend, and a later stage project in the Oreana trend–Lincoln Hill–which is well on its way to becoming a producing mine. Rye Patch also owns a cash-flowing royalty on Coeur Mining’s (NYSE:CDE) Rochester property, which is adjacent to some of its properties along the Oreana Trend.
This cash-flow–more than C$1 million per quarter–along with Rye Patch’s ~C$6 million working capital position, make the company unique among exploration companies. Many exploration companies can’t do much investing without diluting shareholders, and given the bear market in mining shares this dilution is especially punitive. Meanwhile Rye Patch is spending $3.7 millionthis year on its operations. This includes: exploring several properties–Garden Gate Pass, Patty, and Lincoln Hill (specifically the Gold Ridge and Independence HIll Zones), and doing feasibility level metallurgical test-work at its advanced-stage Lincoln Hill Project. Finally, Rye Patch is so well capitalized, and the share price is so depressed relative to this capitalization that management has implemented a share repurchase program: it can purchase up to 5% of the company’s outstanding shares–~$1 million worth.
What makes Rye Patch Gold such an attractive stock is a combination of things:
- The fact that it has the capital with which to develop high quality assets.
- The fact that the market–cash and royalty cash-flow backed out–ascribes very little value to these assets in spite of their potential.
- The fact that Lincoln Hill already has a decent sized (and growing)resource that can be mined using simple heap leaching.
- The fact that the company’s Cortez Projects are extremely close to Barrick’s (NYSE:ABX) high-grade, multi-million ounce Cortez and Goldrush deposits.
- The fact that Rye Patch’s team has extensive experience and success in exploration, including in Nevada and in the Cortez Trend.
Of course Rye Patch is an exploration stage company, and while it has cash/cash-flow it will be spending it in order to develop its projects. This could turn out to be malinvestment, in which case Rye Patch shares will fall. Rye Patch is also sensitive to precious metals prices, and the downtrend of the past 4 years has not yet reversed. While I’m confident it will I’m unsure of the timing.."
Quelle: ryepatchgold.com
Quelle: ryepatchgold.com
Quelle: stockcharts.com
Quote:
Rye Patch Gold: Exklusives Interview mit dem Präsidenten, CEO und Co-Founder Bill Howald im Rahmen der Europa-Roadshow
Ende März traf ich Rye Patch Gold's (TSX-V:RPM) CEO, Präsident und Co-Founder Bill Howald und konnte ihn für ein interessantes Interview gewinnen. Folgend einige Einblicke..
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