Riverside Resources (TSXV: RRI) (OTCQB: RVSDF) (FSE: R99) is a Canadian mineral exploration company headquartered in Vancouver, Canada with gold, silver and copper developing projects in Canada and Mexico. The company holds strong large mineral assets with high quality exploration mining partners BHP, Hochschild Mining, and others.
Riverside has major shareholders such as Rick Rule from the Sprott Global Resource Investment Fund and Adrian Day from the Adrian Day Asset Management, a strong committed long-term holding group from Europe and focused proven unwavering management. The Company is armed with a healthy treasury, a vast collection of proprietary mining related databases and strong strategic partnerships with the world’s largest mining company, BHP.
Riverside is taking advantage of this increasing gold and commodities bull market by working to deliver demonstrable value to its shareholders through its projects and particularly the upcoming exploration drilling and ensuing results during this critical time in the resource development industry.
Investment Thesis
The thesis for Riverside is based on several key factors:
- Riverside’s business model is focused on mitigating risk in the mineral exploration-mining sector.
This is strategically very important, with the firms business approach delivering this as it has over the past nearly 15 years. The unique approach continues to give shareholders the upside of success while limiting the downside of failure through its joint-venture and prospect generator business model.
Riverside does this through its innovative business model of holding a healthy portfolio of projects that are advanced through limited shareholder dilution and with the use of partner funding. This model represents an excellent way of maintaining and growing a strong shareholder value by considering that for every $1 Riverside has spent on exploration, the company has generated ~$2 in partner funded exploration. - Riverside’s project portfolio is well diversified.
By having a wide array of high quality exploration projects at different development stages and in multiple stable jurisdictions, the company is enabled and well positioned for long term success. Similarly, Riverside’s project portfolio lends solid exposure to the current precious metals bull market by providing an upcoming series of simultaneous discovery drilling activities on multiple projects with multiple partners at the same time, enabling many shots for success with silver and gold without diluting Riverside treasury. - The Riverside executive team has wide-ranging experience across the minerals sector.
Perhaps the most critical parameter that determines a company’s success is its team. Riverside has assembled one of the best teams in the business with decades of collective experience across a range of functions. Riverside’s technical team has worked with companies such as BHP, Rio Tinto, Teck, Argonaut Gold, Yamana Gold, and Freeport.
This highly experienced team is led by its CEO, Dr. John-Mark Staude, who himself has accumulated over 25+ years of experience in the industry, along with a degree from Harvard University and a Ph.D from the University of Arizona. Dr. Staude has never sold a single share of Riverside and continues accumulating Riverside shares in the company. - The new case for gold following numerous macro economic events.
The current macro-economic environment, driven as it is by central bank balance sheet expansion, money printing and overall economic uncertainty has created a bullish environment for gold. The covid-19 pandemic has only accelerated this price appreciation which has in-turn tipped several gold exploration projects into being economical.
To the extent that Riverside has a healthy portfolio of gold projects, this new gold bull market bodes well for the company and Riverside has jumped on this with the recent spin-out shares to shareholders of Capitan Mining (TSXV: CAPT) and continues with the next gold catalysts.
FULL DISCLOSURE: Riverside Resources is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Riverside Resources on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
