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Independent Reviews for Venture Investors

It's not that kind of Rogue

Rogue resources (RRS.V) is a mining company specializing in Silica. While the company also has Iron and Nickel deposits, it's now focused solely on their Silicon Ridge Project. The high grade of Silica purity (>98%) available in large quantities (4M tonnes) is relatively unique.

In the past year, RRS.V has made significant progress, on the Silicon Ridge project plan, towards their 2017 production goal.

September 14, 2016 - Released an initial Preliminary Economic Assessment (PEA) overall valuating Silicon Ridge at $ 291M with a $13M CAPEX.

November 18, 2016 - Conducted the operational optimization of Silicon Ridge Project which included Ground Penetrating Radar Survey.

December 22, 2016 - Signed two non-binding letters of intent (LOI) with Metallurgical Grade Silicon ("MgSi") producers PCC BakkiSilicon hf ("PCC") and with Thorsil ehf ("Thorsil") both companies are located in Iceland.

January 5, 2017 - Announced Silicon Ridge preliminary project optimization of lowering the CAPEX and initiated mining permit applications.

February 7, 2017 - Appointed a board member (Julie Ward, Canadian Shield Capital) and created an Advisory Group (Mark Isto, Royal Gold Inc; Nirvan Nuckchedee, SNC-Lavalin; Magnús Árni Skúlason, Reykjavik Economics ehf) to advance the Silicon Ridge project.

March 24 2017 - Hosted community consultations as part of the permitting process in St-Urbain, Quebec - 70 people attended.

April 28, 2017 - Received authorization from the Ministère des Forêts, de la Faune et des Parcs (MFFP) for Silicon Ridge and submitted a report to the Ministère de l'Énergie et des Ressources Naturelles ("MERN") towards the application for a Certificate of Approval - Mining Lease.

May 23, 2017 - RRS.V submitted an optimized PEA with a 77% CAPEX reduction to $3.7M from $13M while reducing valuation by 44%, to $171M. RRS.V also shared that it is finalizing permitting, completing ongoing negotiations with potential material buyers and project financiers.

As outlined above, there is nothing rogue about the company's plan. RRS.V's management has executed the plan meticulously in the past year. In addition to regular news releases, they have held three conference calls in the last eight months briefing investors and answering questions.

The major risk to the project remains the need for a firm off-take agreement which will enable RRS.V to come to production. The two agreement executed by RRS.V to date are not firm, both companies are in the process of building their own facility, one of which will not be ready before 2018.

Otherwise, the company is cash positive with about $0.7M in the bank and has very little dilution at 9.5M shares with a market capitalization of $5M. Hence, the company needs about $2.7M to build a new open pit mine.

While the current book value is $2.13. Fundamental Research has put a target of $2.98 on the stock. To date, most of the money raised through private placement was at $1.00. Given the current price, we consider RRS.V a good opportunity for those interested in a junior relatively close to production.

DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.


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