RE: Talkie15 Feb 2024 15:21
Again, Talkie all you have to do is read the RNSs and listen to the interviews. I have also posted the answer on here.
Every good or commodity has a cost of production. It doesn't matter what it is, gold, copper, cobalt, coal and spodumene.
If I am running a company I have a number of options: I can produce a good or commodity, I can buy it in or I can trade it (contracts for differences, spreads, forward sells etc) or act as an agent.
If I am sane or rational and I can buy a product or good at below the cost of production, why would I produce? The purpose of business is to make money not to pander to troll's fantasies. If I produce and it costs me $600 per unit or I can buy and it costs me $580 per unit, why produce? Production involves capex and operational risk. Things change.
Secondly, the model for ALR changed when the rules changed. Tin Hill contains a lot of lithium, tantalum, tin and other goodies but why incur the costs of ground works when that involves capex and risk, when you can buy Spodumene cheaper elsewhere, there is price risk and there is regulatory risk.
My view is that RRR has three things of immediate interest: the DRC cash, the RRAL prospective IPO and the new O&G opportunity. After that Burkino Faso and ALR will get picked up again. Alongside we have potential deals and more licences in Cote d'Ivoire and the renewal in Kenya.
The only two negative things are the delay in bringing DRC to a conclusion (down to the election in DRC) and what appears to be a delay to Soma Gold bring El Limon back into production. I expect Recon will update on Namibia shortly. It will take maybe a week to rig up on site and so that rig needs to be in transit in the next three weeks or so.
DYOR
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