The infrastructure is the main focus. The rail and port are being upgraded as we speak. This will allow RIV to get started. There is also the real option of barging mega tons for even cheaper rates in the future as they ramp up. I guess if the market thought RIV could quickly expand, then the stock will re-rate substantially from these low levels. Its a sleeper with more upside than other listed coal stocks imo. Its also interesting that CSN has climbed on board the share register with no off take in place yet? Tata completed the first off take and then bought stock. Maybe CSN is taking a strategic position now with a view of completing an off take? They have said they need coal for its steel mills and they are about to take over a very coal intensive cement business as well. Off takes generally mean RIV will end up with a lot more cash without issuing more shares. Something they don't really need to do anyway with some $300m cash in the bank. Whats an off take worth today given that RIV have nearly 20 major coal leases? The 100% owned lease they have been drilling for the last years is stacking up to be billions of tonnes of coal as well. I think it's really only a matter of time before the story really gathers momentum. Just take a look at what is happening out there in the coal space. Who is the biggest Gorilla left in the room?????????????dyor.
RIV Price at posting:
$6.61 Sentiment: ST Buy Disclosure: Held
