It isnt difficult to get a $5M cash cost reduction when open cut mining a narrow high grade deposit. Basically did the hard work in September quarter cutting back and opening up the orebody.
Had the good fortune to meet one of RSG's former mining guys last month at a pre Christmas function who said senior management had been weighing up selling the Tabakoroni deposit project as it was too far away from Syama and they wished to concentrate exploration on Syama South. Thank goodness that didn't happen as Tabakoroni looks to be the saviour and the Nafolo discovery, too low in grade. The understanding I took away, was that they have at least two years of high grade oxides and some very sweet higher grade sulphide ore that will likely offset a portion of the Syama UG ore in a couple of years.
As for the CEO's promises, he's apparently an ex Wallaby rugby player. Our Australian sporting personnel are always getting ahead of themselves!
Apparently the London listing has more to do with them getting out of Australia and focussing on Africa. London investors have a much more risk on attitude when it comes to Africa.
RSG Price at posting:
$1.15 Sentiment: Buy Disclosure: Held
(20min delay)
