Why the Red River Resources (ASX:RVR) share price is plummeting today

The Red River Resources Limited (ASX: RVR) share price is dropping 6% in early-afternoon trade following a production update.

| More on:
Block of solid Gold and gold coins

Image Source: Getty Images

The Red River Resources Limited (ASX: RVR) share price is dropping in early afternoon trade following a production update. At the time of writing, the mineral exploration company’s shares are trading for 22 cents, down 8.51%.

What did Red River Resources announce?

Red River Resources shares are tumbling on the company’s latest performance update at its operating sites.

According to its release, Red River Resources provided an update on its March quarter production. In particular, for its Thalanga Operations in Queensland and Hillgrove Gold Mine in New South Wales.

Thalanga Operations

During the March quarter (Q3 FY21), Red River Resources reported a mixed result for its Thalanga Operations. Ongoing mining activities produced 3,608 tonnes of copper concentrate, 6,959 tonnes of zinc concentrate, and 1,613 tonnes of lead concentrate. Looking at the prior corresponding period (Q3 FY20), 2,310 tonnes of copper concentrate, 4,310 tonnes of zinc concentrate, 1,117 tonnes of lead concentrate was yielded.

The company stated that a safety incident occurred in March which led to a temporary shutdown of mining activities. From 27 March until 1 April, the Far West mine ceased production until an investigation was completed. Since then, the operations have resumed back to normal levels.

Hillgrove Gold Mine

Moving on, Red River Resources pleasingly noted that it is continuing to ramp up production at its Hillgrove Gold mine. In the quarter, 667 ounces of gold was produced in doré and concentrates from the Bakers Hill stockpile.

Gold doré refers to a bar that comprises of a super high gold content alloy. This can sometimes also be pure gold. Doré is a French word meaning ‘golden’ or ‘gilded.’

During the earlier months of January and February, low-grade ore was processed as the mill became online. The company stated that it has poured 261 ounces of gold (in doré) which has been sold. The remaining 406 ounces of gold are at the flotation concentrate stage.

Red River Resources revealed that it will provide its full March quarterly result later this month.

Red River Resources share price review

Over the past 12 months, the Red River Resources share price has jumped more than 200%, but fallen 20% year-to-date. The company’s shares reached a 52-week high of 33 cents in early January, before treading lower.

Based on the current share price, Red River Resources presides a market capitalisation of around $113.9 million.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News