Seeking Alpha

Ian Bezek

 
View as an RSS Feed
PRO Top Ideas
Top Ideas are high-conviction long or short ideas focused on market mispricings with asymmetric risk/reward profiles.
  • Rio Alto: Potential Double, Limited Downside
       • Thu, Apr. 10 RIOM 40 Comments

    Summary

    • Market has failed to account for excellent resource update in February.
    • This resource update gives RIOM the financial flexibility to build Phase II of the La Arena mine without diluting shareholders.
    • Phase II feasibility study results this summer offers catalyst for sudden repricing of stock higher.
    • The market currently values Phase II at nearly zero. As such, Phase II is a nearly free call option on 4 billion pounds of copper/4 million ounces of gold.
    • Existing operations are worth roughly $2/share, limiting downside even if Phase II doesn't work out.