RIO, WEX, EDV
Rio2 aka RIO released an update on the construction of its Fenix gold mine in northern Chile and it was exactly what you wanted to read, rather boring in fact. Eveything is going very well , on time and on budget for first gold pour in January. Then during Q1 we will get the real value driver for RIO, a PFBS for the quadrupling of production over the coming years.
The most 'dangerous' time for a miner building a mine comes after the beginning of production, as teething problems usually occur as the processes and equipment are put through their paces for the first time. But I am confident, based on RIO management's track record, that startup at Fenix will go smoothly, and judging by the way the stock has been trading, the market agrees.
My original target for RIO was $2, but at this point I am raising that target to $3. My original plan had been to start taking profits around $2, but I have changed my mind and will continue to hold all my RIO shares.
Message 35312784
Western Exploration aka WEX released an update on drilling an their Aura Au/Ag property in Nevada, where they are exploring new targets near existing Resources on the property. So far they have completed nine holes, and then paused to examine and analyze the drill core. Even without assays, what they found has been encouraging enough that they have resumed drilling.
No indication was given as to when we can expect assays to be released.
Message 35314004
FWIW, Raymond James put out a new analyst report updating their estimates on west African gold miner Endeavour Mining aka EDV ahead of earnings to be released in two weeks. They made some minor changes to their model but kept EDV at Outperform with a target of $70.
Saville expects both the PoG and Hui to shortly begin a rebound, followed by another deeper decline. To put it another way, according to him the charts show that a 3-6 month top has been set. |
