The initial research report written on Revett Minerals commented on the company as providing “both value and upside in the Troy copper-silver mine and significant upside in a nearby world-class Rock Creek copper-silver deposit.”
The Troy Mine has already been proven to be profitable and is currently increasing production. These profit are in-turn being invested directly back into the company as it develops the Rock Creek Project. The identified deposits at the two locations could support a mine life of six years for the Troy mine, and 20-plus years for the Rock Creek Project.
There is great potential for the Troy Mine as it has a proven and probable reserve of 13.2 million tons grading 1.14 ounce per ton silver and 0.54% copper. The management believes that the mine is on schedule to produce 4,455 tons per day.
The Rock Creek Project received a favorable Record of Decision for evaluation and development of the land in 2003, but later a number of regional and national environmental groups challenged the decision. A favorable final decision could significantly impact Revett Minerals’ share price.
In conclusion of the report, the research company awarded Revett Minerals with a “Speculative Buy” rating and a target price of $2.75. The above-average metal prices, and improving operations significantly attributed to the strong rating.
Let us hear your thoughts below: