I sold out over the last 3 market days. My last 2100 share went today
Hadn't held this one for very long. Averaged into the stock over a few days just after the mine update came out.
When I read the updater about the mine probably resuming operations I made the simple assumption that the mine would resume operating as it previously had and with the same recoverable mineral resources as before.
However, the octagon report ( which I find very credible) makes it clear that will not even remotely be the case. The quake which originally shut the mine has apparently rendered the more valuable resources unmineable and left RVM with nothing but 2 years worth of low grade resources to mine before they will have to spend $10 million to access another low grade resource at the mine.
The actual situation is apparently so bad that octagon actually assigns a negative net present value to the troy mine; MEANING, that in their estimate, the net value of the remaining resources that can be mined at troy is actually less than what it is going to cost RVM to mine those resources. This has caused them (Octagon) to express the concern of whether it is actually in RVM's best interest to even reopen the mine to start with.
It seems that management omitted a few "minor details" when it updated about reopening the mine.
Anyway I took just a little over a 2 percent loss on my brief time here. Not a big deal. I can put the money to use somewhere else and make 2 percent on a single day trade. I thought about hanging around to see if the stock had a pop on news of the mine actually reopening that I could maybe sell into, but you know a ton of shares might be waiting to sell on that news and RVM could actually fall on news of the mine reopening because of that. I wish everyone that continues to hold well, but I just thought it worth taking a small los to avoid the possibility of taking a large one somewhere down the road.
I got out of RVM awhile back with a minor loss that I have since recovered on a daytrade in UNXL.
I have kept in touch with how things were going with RVM just in case it looked like it might be a good idea to jump back in (depending on how the news went).
Came home today and saw the news. Sorry for those that held on after the Octagon report came out. That report was a clarion call to get out of the stock because it showed that the NPV of the troy mine was negative even if the D drive succeeded (which we now know it did not) and because it showed that management was not being completely open about the not so good aspects of the troy mine situation. The Octagon report should have been everyones wake up call to sell. As I said in my original post here, its worth taking a small loss to avoid the possibility of taking a much larger one somewhere down the road.
FYI - the company has NEVER said they can't get to A and C beds. This is just a worst case assumption by Octagon
Paul Renken - VSA Capital Limited, Research Division
And my final question is if you can address the question as to whether your position concerning write-downs on either resources or development costs at Troy?
John G. Shanahan - Chief Executive Officer, President, Non Independent Director, Member of Environmental Committee and Member of Safety Committee
Yes. In terms of resources, we still believe that we, either through this D Drive or if it's an alternative route, we are still going to be able to access our reserves in both the A and C Beds and eventually, the reserves that are in the I Beds and resources that are currently in the JF. So we have not written down our reserves.
i think OCTAGON has you confused....since you hold so much confidence in OCTAGON's report...why didnt you just set your stop a nickle below the 1.20 price target and give your position some room to run??....like i said...the stock WENT UP on the DOWNGRADE NEWS....