Redcorp Ventures (RDV)


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Redcorp ventures is a Canadian mining company which has interesting reserves.
Tulsequah is in Canada (in Colombia britanique), it is main project, resources are the following ones ( measurd+indicad+inferred ):
In: 728 000 ounces of gold.
Ag: 30 916 000 ounces of money.
Cu: 117 348 tons of copper.
Zn: 590 568 tons of zinc.
Pb: 110 544 tons of lead.
What gives to current class rate: In 298 millions $, Ag 206 millions $, Cu+Zn+Pb 1087 millions $, given a total of 1592 millions $ for a capitalization of the order of 12 millions $ (rate 0.4$ca). What gives general ratio of 130 (for a dollar of action = 130$ of reserves).
Production is foreseen for 2006 and the duration of exploitation is of the order of 12 years, there are possibilities of extension of resources.

Technical analysis

I. Long term, Weinstein's phase.
There was a phase of 4 years since 1999 and before it a very long phase 4 during 8 years. Volumes very important which there is on the value for one year let believe in a starting up of phase 2. Rates are in slightly above it mm150 but important volumes can left envisaged the next starting up of the phase 2.
The volumes which are very important can left envisaged a phase which is at least of the same dimension as the previous phase two of 1990-1991.

graph redcorp ventures weinstein phase


II. Long term, canal bear.
Redcorp is in a canal a bear since 1991 and the height of this canal finds in the zone of 1.8$.
Three indicators: volume, OBV are very positive:
-There is one very sharp increase in volumes for one year and in a regular way.
-The OBV returned to the positive and broke two right-hand sides of bear tendency. The OBV is in continuous increase since two and leash augured by an accumulation by investors.
-OBV one changed tendency since 2000.
In spite of these three indicators are very positive the rates did not a lot evolve. To use a culinary metaphor, the cauldron is boiling but the lid has not yet jumped.

 

III. Middle term, triangle.
A triangle it is create since the beginning of 2000, the height of the triangle (0.4$) was tested on four occasions. Exit by the height of this triangle gives an objective of 0.75$.

 

Redcorp with one evolution of very reasonable rates but indicators in very strong movements let suspect a possible very sharp increase. My objectives are the following ones:
- 0.75$ (taken out of triangle middle term).
-1.8$ (height of the canal bear).
- 4$ with 8$ (summit phase 2 the previous one).


Figures arise from the Web site of redcorp and my interpretation can be erroneous, even it is advisable to verify you exactnesses of these figures.
This analysis is first an analysis long term and it is the value which contains of numerous risk I incite you so to the biggest caution.

Thomas Chaize

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