RSG and AQG - Mine Development and Expansion Comparison

Hi everyone,

I want to use this thread to get people to put their heads together and do a comparison on RSG's development projects on Ravenswood and the Syama underground mines that was rolled out in the end of 2016 against the AQG development of the Copler Sulfide mine that is now pretty much completed.

The reasons for this comparison are the following:

- Both companies embarked on what is to be gamechangers for them as the projects are meant to significantly increase their annual production level.

- Both companies needed to invest a significant amount of capital into the projects. This included funding through debt, equity and also operating cash flows.

- Both companies commenced their expansion projects with strong net cash position but over the course of the development, they began to accumulate significant debt and are now in significant net debt positions.

- Both companies have accumulated a significant amount of gold in circuit or stockpile that has yet to be processed, poured and sold. Thus, they have a significant reserve that can be converted into cash in the future.

- Both companies have similar market capitalisation levels, although AQG has now breached the $1 billion mark and should be well on its way.

I note that AQG has had a much better pathway to completing their Copler sulfide mine expansion than the Syama and Ravenswood expansions. There is no doubt that the RSG management has disappointed a significant number of investors, as evidenced by the messages in this forum. However, I want to get us together and have a think about whether the disappointment and frustration on RSG is rationally justifiable, when placed against the context of the AQG Copler sulfide expansion project.

I hope in this discussion, people's tempers and civility are maintained.

Over to you...

Cheers,
Brian