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Riverside Resources faced a static stock price in 2024 despite operational achievements, including the planned spin-out of its Ontario gold assets into Blue Jay Gold, progress on Mexican exploration projects like Cecilia and Ariel, and expansion into rare earth exploration in British Columbia. The company maintains a strong financial position with $4.9 million in cash and a modest annual burn rate of $1 million, allowing it to continue operations in 2025. CEO John-Mark Staude outlined 2025 priorities, including completing the Blue Jay spin-out, advancing key projects through partnerships, and exploring strategic options for its royalty portfolio, with a focus on delivering tangible results to shareholders in a challenging market.
TL;DR
- – Riverside Resources’ stock price remained stagnant at $0.13 throughout 2024, despite the company meeting operational goals, which CEO John-Mark Staude attributed to delays in exploration results and limited market recognition of its achievements.
- – With $4.9 million in cash reserves and a $1 million annual burn rate, Riverside is positioned to continue operations without raising capital in 2025, though partner contributions have declined compared to previous years.
- – The planned spin-out of Riverside’s Ontario gold assets into Blue Jay Gold is expected to progress by late spring 2025, with the company emphasizing business strategy over market timing for this decision.
- – Projects like Cecilia and Ariel have advanced exploration potential, while the Tajitos royalty’s future value depends on Fresnillo’s decision to move forward; these developments could shape Riverside’s next steps in Mexico.
- – Riverside’s entry into rare earth exploration in British Columbia remains in the early stages, with 2025 focused on permitting and fieldwork rather than drilling, alongside plans to selectively pursue U.S.-based opportunities.
Why Didn’t Riverside Resources’ Stock Reflect Progress in 2024?
Riverside Resources’ CEO, John-Mark Staude, acknowledged that the company’s stock price stagnated at $0.13 throughout 2024, despite achieving several milestones. Staude attributed this disconnect to external factors like market sentiment and internal timing issues.
“Gold prices surged, and we added gold projects, but the value hasn’t been fully recognized yet,” he stated.
Additionally, delays in drilling results from the Cecilia project with partner Fortuna Silver Mines left investors awaiting news.
Other factors included Riverside’s expansion into rare earth elements (REE) and the consolidation of Ontario gold assets into a spin-out company, Blue Jay Gold. According to Staude, these moves align with Riverside’s long-term strategy to benefit from commodity sector upside.
He remarked, “We accomplished what we set out to do in 2024, even if the market hasn’t fully responded yet.”
How Much Cash Does Riverside Have, and Are They on Budget?
As of early 2025, Riverside holds approximately $4.9 million in cash, slightly down from $6 million at the start of 2024.
Staude confirmed the company’s annual burn rate of $1 million, emphasizing fiscal discipline. “We’ve consistently operated within our budget, supported by cash inflows from partners like Fortuna,” he said.
In 2024, Riverside received $500,000 from partners, down from $1.3 million in 2023 due to the conclusion of funding from BHP.
Staude expressed confidence in avoiding the need for capital raises in 2025, thanks to cash reserves, ongoing partner contributions, and anticipated spin-out transactions. “We could operate for several years without raising additional capital,” he noted.
Why Spin Out Blue Jay Gold Now?
Riverside aims to unlock shareholder value by consolidating and separately listing its Ontario gold portfolio, which includes the Oakes, Peddie, and Duc projects.
Staude justified the timing of the Blue Jay Gold spin-out as a strategic business decision rather than a market-driven move. “You can’t wait for the market to be perfect; you have to run the business,” he explained.
The spin-out process includes shareholder approval at a March AGM, followed by a share split and listing, potentially by late spring 2025. Staude highlighted that this move mirrors Riverside’s successful past spin-outs, such as Capitan Silver.
He added, “The spin-out allows us to establish a standalone entity with focused leadership and funding.”
What Is the Status of Riverside’s Royalties?
Riverside’s royalty portfolio, which includes assets like the Tajitos gold royalty in Sonora and Sugarloaf Peak in Arizona, remains a key focus.
Staude highlighted Tajitos as the nearest to potential production, with Fresnillo expected to make a critical decision by 2026. “If Fresnillo advances Tajitos, we’ll see significant value unlocked,” he said.
The portfolio also includes several other royalties in Mexico and Canada, with potential transactions under consideration. Staude suggested that selling or bundling the royalties could generate substantial cash for Riverside. “The royalties alone could eclipse our enterprise value, offering a clear path to shareholder returns,” he noted.
What’s Next for the Cecilia Project?
The Cecilia project in Mexico, drilled in late 2024 in partnership with Fortuna, is at a critical juncture.
Staude reported that drilling is complete, with assays expected shortly. “Fortuna’s decision to continue or exit will shape Cecilia’s future,” he explained. If Fortuna opts out, Riverside intends to leverage the expanded dataset to attract new partners or advance the project internally.
Staude acknowledged that 2025 is a pivotal year for Cecilia. “If Fortuna doubles down, that’s great for us. If not, we have nine strong targets to pursue independently,” he added.
Later down the road, John-Mark said that Riverside plans to bundle its Mexican projects, potentially spinning them out as a standalone entity to unlock shareholder value.
How Does Ariel Fit into Riverside’s Strategy?
The Ariel copper project in Mexico saw progress in 2024, with Riverside consolidating key land packages and advancing permitting. While no drilling occurred, Staude expressed optimism about Ariel’s potential amid growing demand for critical metals.
“Copper is becoming the new lithium, and Ariel is well-positioned to capitalize on this trend,” he said. The project is ready for partnerships in 2025, with various avenues under consideration.
What Is Riverside’s Approach to Rare Earth Elements?
In 2024, Riverside expanded its presence in British Columbia with REE-focused acquisitions.
However, Staude confirmed that drilling on these assets is unlikely before 2026, as the company focuses on fieldwork and permitting.
“We’re laying the groundwork for high-quality exploration while keeping costs low,” he stated. The company plans to engage with potential partners in 2025, particularly at industry conferences like Vancouver’s Roundup and Toronto’s PDAC.
How Will Riverside Balance Its Diverse Portfolio in 2025?
Riverside’s portfolio spans four key areas:
- Ontario gold assets: Soon to be spun out as Blue Jay Gold, and housing 4 projects.
- Mexican exploration projects: Includes Cecilia, Ariel, and other copper and gold assets.
- British Columbia assets: Early-stage projects requiring further exploration and permitting, including some REE prospects.
- Royalties: A portfolio of 4 royalties with potential for transactions or long-term cash flow.
Staude emphasized disciplined resource allocation and leveraging partnerships to advance multiple assets simultaneously.
“We’re structured to unlock value without overextending ourselves,” he said.
What Are They Doing in 2025?
Staude says 2025 could be a pivotal year, with milestones including:
- The Blue Jay Gold spin-out and listing, expected in late spring.
- Continued drilling and potential partnerships for Mexican assets like Cecilia and Ariel.
- Advancing permitting and exploration for REE projects in British Columbia.
- Strategic decisions around the royalty portfolio, including potential transactions.
Are Spin-Outs the Right Strategy?
When asked whether spin-outs could dilute Riverside’s value, Staude argued that they unlock hidden potential.
“Even if Riverside’s stock price dips post-spin-out, the combined value of the separate entities often exceeds the original,” he explained. This approach has historically yielded strong returns, such as the 4x increase seen with Capitan Mining, John-Mark told Resource Talks.
How Does Riverside Value Its Royalties?
Riverside employs multiple valuation methods, including discounted cash flow, dollar-per-ounce metrics, and comparisons to similar portfolios.
Staude suggested that the Tajitos royalty alone could be worth substantial value if advanced by Fresnillo. “We’re open to transactions but focused on ensuring maximum returns for shareholders,” he noted.
How Is Riverside Navigating External Challenges?
When asked what keeps him up at night, Staude acknowledged challenges such as fluctuating commodity prices and permitting complexities.
However, he expressed optimism about improving sentiment in Mexico under its new administration and opportunities in U.S. jurisdictions like Nevada.
“We’re adapting to market dynamics while staying true to our long-term strategy,” he said.
Riverside Resources CEO Interview With John-Mark Staude
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