It’s not often fundamental news, operational milestones, commodity prices and the charts come together all at once.
But that’s exactly what has happened this week with Red River Resource [ASX:RVR].
Why could Red River Resources Share Price Rise?
There have been two big announcements this month.
On 13 June the company announced they had secured a copper off-take agreement for its Thalanga Zinc Project.
This agreement will reduce the working capital requirement for the project.
And just today the company has announced it has hit further high grade zinc deposits in the same mine.
The project is due to restart in Q4 this year.
The good news is the company is fully-funded to restart this project.
That brings us to the zinc price, where there is further good news.
The zinc price has recently broken an eight year high, as you can see from the chart below.
If this price breakout holds it could signal the start of an increase in long-term zinc prices.
Red Rivers renewed project timing could turn out to be perfect.
Cancacord Genuity currently have a price target on the company of $0.35, a 62% premium compared to current prices.
Analyst, Money Morning
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