Revett Minerals Inc.
U.S. Symbol: (RVMIF)
Toronto Exchange: (RVM)
Monday's U.S. closing price: $0.3995
Web site: http://www.revettminerals.com
Web site: http://www.revettminerals.com
NIA's new stock suggestion is Revett Minerals Inc., which trades in the U.S. under the symbol RVMIF and on the Toronto exchange under the symbol RVM.
One of NIA's top stock suggestions of 2009 was Silver Wheaton (SLW), which we suggested on February 26th, 2009 at $6.74. SLW was NIA's first ever silver stock suggestion for a reason. NIA believes SLW has the best management team in the entire precious metals industry. SLW reached a high this year of $17.80 for a gain of 164% from our suggestion price.
SLW recently increased their position in and became the largest shareholder in our new stock suggestion RVMIF. In their 10-K just filed on March 19th, RVMIF reported that SLW now owns 22,757,357 shares of RVMIF or 17.5% of RVMIF's shares outstanding.
RVMIF also reported in their 10-K that a large publicly traded asset management firm U.S. Global Investors (GROW) now owns 8,488,900 shares of RVMIF or 6.6% of RVMIF's shares outstanding.
So between SLW and GROW, two major well respected corporations now own almost 1/4 of RVMIF's shares outstanding!
RVMIF is a producing silver/copper company in Montana. RVMIF produced 1,127,739 ounces of silver and 8,567,765 pounds of copper in 2009, generating revenues of $29.5 million.
RVMIF projects that 2010 production will grow to 1,290,500 ounces of silver and 10,749,703 pounds of copper. Therefore, we expect RVMIF to report major revenue growth in 2010, especially considering that silver and copper prices are now substantially higher than a year ago. (Copper prices are up 81% from a year ago and silver prices are up 22% from a year ago.)
RVMIF's production is currently coming entirely from their 100% owned Troy Mine. However, RVMIF also owns one of the largest undeveloped silver prospects in the world called Rock Creek. It is estimated that Rock Creek could contain 229 million ounces of silver and 2 billion pounds of copper and once in production it could produce 6 million ounces of silver and 52 million pounds of copper annually with a mine life of 20-30 years!
Some environmental groups are trying to put a stop to RVMIF's efforts to advance the Rock Creek project. There was a court hearing on March 17th, 2009 to clarify the status of the legal challenges and the judge indicated that a decision is under active deliberation and that a ruling may occur within the next several weeks.
If RVMIF is allowed to proceed with Rock Creek, NIA believes RVMIF could become one of our best performing stock suggestions of all time. Please be aware that if the judge issues a negative decision, we could see a short-term sell off in the stock.
NIA believes due to the huge economic impact Rock Creek will have in Montana with the creation of 300 new jobs, the odds are in RVMIF's favor that the project will eventually proceed. If the judge's decision is unfavorable to RVMIF and the stock declines in the short-term, we would consider it to be a blessing in disguise for NIA members.
This is a high-risk, high-return situation. But because RVMIF is already producing at its Troy Mine and has grown silver production for five consecutive years, NIA believes RVMIF's upside potential far exceeds its downside risk.
Our legal disclaimer: http://inflation.us/legaldisclaimer.html
Neither NIA nor its co-founders hold a position in RVMIF. However, two of NIA's co-founders have previously disseminated some of their opinions on RVMIF in other financial newsletters.
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