Excellent report out on Rye Patch (V.RPM) from Industrial Alliance Securities:
“Rye Patch has a low EV (US$12.7/oz, see Exhibit 2) for a mine that just started production, and with a 200Koz p.a. capacity at the plant, at our increasing gold prices, Rye Patch should be a highly profitable mine once through the build-up period, with significant growth potential through bootstrapping Lincoln Hill and Wilco.
Assuming a normal build-up, liquidity appears sufficient post the US$5M rebate from the reclamation bond insurance. We maintain our Buy recommendation with a 12-month target price of $0.70/sh.”
You can see the full Rye Patch report here (PDF). One of the most interesting elements of the report is that Industrial sees RPM’s All In sustaining costs as significantly declining as the company ramps up to commercial production.