March 22nd, 2010:
Revett Minerals Inc.
U.S. Symbol: (RVM)
Toronto Exchange: (RVM)
Current U.S. Price: $1.9975 (split adjusted)
www.revettminerals.com
Please note that after the release of this report, RVM conducted a 1 for 5 reverse split and now trades in the U.S. under the symbol RVMID.
NIA's new stock suggestion is Revett Minerals Inc., which trades in the U.S. under the symbol RVM 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 RVM. In their 10-K just filed on March 19th, RVM reported that SLW now owns 22,757,357 shares of RVM or 17.5% of RVM's shares outstanding.
RVM 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 RVM or 6.6% of RVM's shares outstanding.
So between SLW and GROW, two major well respected corporations now own almost 1/4 of RVM's shares outstanding!
RVM is a producing silver/copper company in Montana. RVM produced 1,127,739 ounces of silver and 8,567,765 pounds of copper in 2009, generating revenues of $29.5 million.
RVM projects that 2010 production will grow to 1,290,500 ounces of silver and 10,749,703 pounds of copper. Therefore, we expect RVM 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.)
RVM's production is currently coming entirely from their 100% owned Troy Mine. However, RVM 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 RVM'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 RVM is allowed to proceed with Rock Creek, NIA believes RVM 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 RVM's favor that the project will eventually proceed. If the judge's decision is unfavorable to RVM 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 RVM is already producing at its Troy Mine and has grown silver production for five consecutive years, NIA believes RVM's upside potential far exceeds its downside risk.
A co-founder of NIA has purchased 10,000 shares of RVM and could sell them at any time.
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