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  1. #11
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by Joshuatree View Post
    BDR , NST, MML, PGI i believe are the cheapest producers by far, worth putting them on ones watch list for when a turnaround in Gold price/sentiment happens
    Thanks for those tips, much appreciated

  2. #12
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    Soros has been bailing out of gold but has gone long call options on junior miners... ;-)

  3. #13
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    I updated my research on RSG & bought in. I dealt with these guys over a 15 year period. Very straight shooters, however were always constrained by an out of the money hedge book & also some difficult mines. Operationally they seem to be more on the boil & I like the fact they are buying distressed assets at very good prices. $340M MC with around 350k of production which is likely to increase in the future with the acquisitions they have made. Also have plenty of resources/reserves. RSG should be one of the better performers in my book on a rising gold price.
    Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.

  4. #14
    Senior Member Bobcat.'s Avatar
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    Yes Daytr, RSG has some appeal. I looked at this stock earlier (November) and got disinterested because of their AISC (~$1,200/oz AUD), high debt, and lack of hedging...but it's worth another look as the sp drfits to around 50c...since
    a) AISC forecasted to improve in 2014
    b) lack of hedging is less of a concern now given POG support is confirmed above $1200
    c) $28m CAPEX reductions on the Syama expansion project is freeing up working capital

    I'm watching the RSI (currently ~45) and anticipating an imminent bounce off somewhere between 51 and 53c. Trading to it.

    BC
    To foretell the future, one must first unlock the secrets of the past.

  5. #15
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    BC, they have $95M of debt which isn't huge considering the amount of production they have. I also think their ASIC is forecast to be between $A1000 & A$1100 for 2014. So with a A$ POG over A$1400 should give them EBITDA of around A$120M!
    Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.

  6. #16
    Senior Member Bobcat.'s Avatar
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    Quote Originally Posted by Daytr View Post
    BC, they have $95M of debt which isn't huge considering the amount of production they have. I also think their ASIC is forecast to be between $A1000 & A$1100 for 2014. So with a A$ POG over A$1400 should give them EBITDA of around A$120M!
    Yes, I see now that their debt is not so bad. AISC for 2014 is forecasted to be $1175/oz (AUD) - see page 3 of this November CEO presentation:

    http://www.asx.com.au/asxpdf/2013112...lc7w5w4djr.pdf

    Anyway, with the POG lifting this morning to 1253USD (as I write this), we will almost certainly see a lift in RSG's price Monday, alongside most other PM digger stocks. Your investment yesterday does look to be a good one.

    BC
    To foretell the future, one must first unlock the secrets of the past.

  7. #17
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    I have been looking around for what I consider one of the most unloved gold producers & I think RSG fits the bill.
    One of the largest producers on the ASX & diversified production.
    They have never been the most dynamic of companies however they seem to be getting better & keeping costs down & are exposed to both the USD & AUD gold price. They also have some pretty good reserves & new ore being drilled.
    With a market cap of just over A$250M I think they are a bargain here.
    Gold price dependent obviously.
    If we have indeed put in a triple bottom in gold we should see the SP a hell of a lot higher than the current 38/9c.
    As such I bought in today.
    Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.

  8. #18
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    Well it just shows what a difference 18 months makes since the last post. They went from 38c up to around 76c & now are trading 25c! Obviously the Ebola scare is caused havoc on the SP as they have operations in West Africa. With the SP having basically halved mostly on the back of Ebola I think the risk is more than priced in. I also think that the West is now awake to the threat of the spread of Ebola & is reacting with funding & assistance to contain the spread of the disease.
    I must say I have never been that impressed with the management, they are too reactionary imo but I weighed this in my decision to buy in today vs the current valuation. The tipping point was their stellar recent drill results. Quite incredible on their newly acquired project in Ghana. A couple of highlights below.
    Assays from surface and underground diamond drilling included 30.9 metres at 13.32g/t gold from 276.7 metres, 40 metres at 20.62g/t gold from 431 metres, 22 metres at 11.81g/t gold from 109 metres, and 24 metres at 6.52g/t gold from 118 metres.

    At market cap now of around $170M pretty decent production & a very large reserve / resource base at the current SP I think they are possible takeover target as well.
    Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.

  9. #19
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    Flicked in out of RSG for a good profit. Bought back in today lower than my previous buy!
    Ridiculous price at current POG and AUD.
    Sentiment weighing obviously however I wouldn't be surprised to see another surge like last week.
    Hard to believe RSG was trading 70c only a few months ago and now its 22c and A$Gold is higher !
    Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.

  10. #20
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    RSG building nicely today up 11%!
    Buying bids building as well.
    $150M market cap on a miner producing 400-440k ounces.
    That's what I call upside exposure to the gold price.
    3-4 months ago they were trading triple what they are now.
    Mostly because they have production in West Africa & ebola, which has had no impact on them at all.
    They also have a higher AUD Gold price for their Aussie production.
    Happy days!
    Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.

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