Quarterly Address From the President
October 2012
Dear Shareholders,
Riverside continues to progress its Prospect Generator business with partners providing funding and Riverside�s team bringing ideas, expertise and properties. We very much appreciate your continued support as Riverside focuses on cost effectively forwarding the best possible opportunities for corporate growth. Riverside has more than $7,000,000 in cash and will intelligently use its capital to acquire key additional assets, as well as work for discovery and delineation on the Riverside portfolio in lower financial risk jurisdictions including Mexico, USA and Canada.
Throughout this turbulent market period, Riverside has strategically secured valuable assets, maintained extensive cash holdings, and created strong partnerships which have allowed the Company to maintain a tight share structure (35M shares outstanding). Riverside�s ability to broker effective deals and generate partner funding has helped the Company deliver significant exploration activity on its portfolio with partners carrying the majority of the costs. The Company�s main focus is stead-fast on making and owning discoveries and delineating resources with our partners working to earn an interest through funding the early risk capital.
Our partnership alliances with Antofagasta and Cliffs have been busy over the summer working in Canada and Mexico respectively. These alliances help to bring in and sustain the highest quality geoscientists and have them working for us where they can generate and develop innovative target ideas. Riverside has been active with its alliance partners and is currently waiting on drill results from this summer�s drill program in Central BC, funded by Antofagasta. We are pleased with the advancement of our projects that took place during the first half of 2012, and as the access to capital began to tighten for junior companies we have received some assets back, while working with other partners to restructure deals. This is the nature of our business, and we believe that Riverside�s Prospect Generator business approach is built for volatility. When the markets are strong Riverside is able to generate a wealth of activity, as the company did in 2010 and 2011 while also earning a penny per-share profit last year. Riverside won�t earn a profit again in 2012, but as the year winds down we are carefully managing our capital and diligently evaluating opportunities to acquire distressed assets that have the potential to offer significant returns.
We look forward to finishing the year strong, drill results being released and positioning Riverside for major growth into 2013. Mexico continues to be a great place for major miners such as Goldcorp, Newmont, Fresnillo and Grupo Mexico. Osisko recently announced its entrance---staking one million hectares in Mexico, while investment continues to flow into the country�s mining belts evidenced by emerging producer Torex recently raising $350 million in a bought deal. We are confident that Riverside can continue to achieve significant growth in Mexico, and will build our business throughout North America and beyond.
I continue to be one to be one of the largest shareholders and I have not sold a share. We appreciate your continued interest and always welcome meeting shareholders. We have full-time, in-house investor relations representatives available with a toll free phone number to make it easy for you to reach us. I am pleased with our growth over the past five years as Riverside has annually expanded, refined and improved our Prospect Generator business. I�m confident in the strength of our team and believe it�s only a matter of time before we deliver a major success for our shareholders.
Sincerely,
John-Mark Staude