Company Interviews

Rockhaven Resources Ltd. (TSX-V:RK) - What is Your Game Plan, What is Your Design?


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Interview with Matthew Turner, President & CEO of Rockhaven Resources Ltd. (TSX-V:RK)Rockhaven Resources Ltd. is an "advanced stage" gold-silver exploration company. The main focus is on advancing its 100% owned and 'road-accessible' Klaza gold-silver project in Yukon, Canada. The company has been working on the Klaza Project for over 10-years, identifying around 1.2Moz of gold and 28Moz of silver. Adding Lead and Zinc by-products into the equation, Turner claims the company is looking at 1.62Moz gold equivalent at 5g/t gold equivalent.Rockhaven Resources claims that Klaza hosts one of the highest grade gold deposits ever discovered in Yukon. Rockhaven Resources controls a substantial 250km²+ of prospective land within the district.What do the numbers look like? The market cap is c. C$18M. The company has raised US$40M since 2007. What has been the plan for the last 10 years? Turner says the company never expected to find a resource this big in the first place but now wants to grow it further. "It's all a matter of finding more" and hitting a "critical mass." Turner doesn't know if it's 2.5Moz, 3Moz, 4Moz or 5Moz... this is the "main path forward... to get the bigger players interested."The management team is very good at finding gold, but they aren't gold miners, and Turner is honest about this. Has this put the market off because they are aware Turner and his team are in a cul de sac when it comes to endgame options? The aim is clearly to build up the gold-silver resource, derisk the project, and sell it for a premium. The team are not experts in gold-silver development either. Is this another concern? Turner thinks the company is close to attracting majors, but he claims the company is not there yet because of the current market situation. Does this hold true when the company has been at it for 10 years? Will investors be worried that the management team appears to be devoid of commercial expertise? Can the team make a deal, or are they too skewed towards technical knowhow? Turner claims that nobody it listening, but it is his job to make gold-silver investors listen. There are clearly some major flaws in the marketing strategy.Rockhaveen Resources appears to believe it owns one of the few 2Moz+ gold mines in a stable jurisdiction, but this is simply not the case. There needs to be more to this story in the shape of a coherent, intelligent plan than relying on investors having blind faith.Is having just one asset another risk for Rockhaven Resources? The market often rewards commodity diversification and risk mitigation by spreading priorities over multiple assets. Is the single asset conundrum putting a spanner in the works of growth for Rockhaven Resources? How will the company insert itself successfully into the market? Turner continues to say that he will keep moving the project forward and will continue to de-risk it. Investors will need to decide if this is a plan or not. We'd like to hear a lot more.Turner himself has around 1 million shares of some 188M. He claims the insiders own a "fair chunk" in total: 15M shares. Is this enough skin in the game for your liking? Strategic Metals owns 34%.All in all, Klaza could be a solid asset. The PEA in 2016 revealed an economic project in a much lower US$1200/oz gold price environment. Turner really needs to think about how he is communicating the value proposition to the market, and needs to move away from the technical prowess that has become a constant theme. Investors want to hear how this thing is going to make them money: plans, timescales, potential JVs and strategic partners, financing strategies, etc. After 10 years, Turner might have to go back to the drawing board unless the share price picks up soon and the current strategy pays dividends.What did you make of Rockhaven Resources? Why invest in Rockhaven rather than any other gold developer? Company page: https://www.rockhavenresources.com/Make smarter investment decisions, subscribe here: https://www.cruxinvestor.comFor FREE unbiased investment information, follow us on Twitter, LinkedIn and Facebook:https://twitter.com/cruxinvestorhttps://www.linkedin.com/company/crux-investor/https://www.facebook.com/cruxinvestorTake advantage, hear it here first: https://www.youtube.com/CRUXinvestor
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