Bottom here?, page-559

G77,

CEO has made bets with his own money. I haven't seen a CEO who buys stock in his own company more regularly and in volume than Welborn.

Also disagree with you that his strategy is to ride a rising gold market. Capital investment across the business is clearly identified as being driven by an ambition to be a low costs AISC US$750 producer. Its a transformation play. Syama has always been high cost. decision to automate and go big on refurb mills etc is to change the cost profile and make the project robust in lower gold prices. The junior plays is about backing them to add more ounces cheaply.  The risk is he doesn't get there but dont mistake what is the ambition.  

Personally I have made a ton backing Welborn's ability to back a junior winner all the way back to Prairie Downs, Colonial, Papillion, Equatorial, Orbital, and now Resolute. If you look at Welborns entry into these stocks in every single case he has driven at least a 5 bagger and mostly 10 baggers from his start to the top. 

Resolute is  different story and I have been watching with interest and surprised at his discipline. I dont think he will sell Ravenswood unless he either desperately needs the money (which he might?) or he is doing something else in terms of structure. Wonder if one of the African big boys wants Syama and the "spin out" is the other way around. 

 

J9