RSG

1.23%

40.0¢ resolute mining limited

I hear everything you are saying Esh but Worzel has the right to...

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SoConfused

154 Posts.

36

15/01/19

16:26

Post #: 37122228
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Originally posted by eshmun: ↑

This also from the 24 July quarterly announcement.

"Development underground ore production, which commenced in the September 2017 quarter, was 45,080t at 2.83g/t Au (March 2018 quarter 64,448t @ 3.0 g/t). This underground development ore, and quantities of sulphide ore mined as part of satellite open pit oxide operations, will continue to augment and displace lower grade ore stockpiles as the circuit feed source during the development phase of the Syama Underground."

The company indicated it would augment development ore with "quantities of sulphide ore mined as part of satellite open pit oxide deposits" as well as stockpiles as it went forward after the June 2018 quarter as stability issues in the main open pit during the June 2018 quarter interrupted plans to mine sulphides in the main open pit through the remainder of 2018.

Seeing as feed into the sulphide circuit could have had many sources, including satellite oxide pits, stockpiles, development and stoping ore from the Syama mine the guidance in the first half of FY2019 can not be reflective of the performance of the all important variable, if you are investing in this company, which is the performance of the Syama UG mine and more importantly the ramp up of the SLC ore which only started being produced in Dec 2018. The important data is the projected mining rates from the Syama UG mine and how closely those mining rates meet previous forecasts.

Whether the sulphide circuit meets FY2019 guidance is inconsequential to the future of an investment in this company IMO as the reported source of the feed for the sulphide circuit over the initial 6 months of this period is not representative of what any smart investor here should be interested in. How the company struggled through keeping feed up to the sulphide circuit during the development of Syama will just be ancient history once and if the company meets its steady state ore production at Syama.

The value of this company now almost entirely depends on the success of this project and its abilty to produce free cash flow. The rest, including Tabakoroni can't float that RSG's value forever so now is the time to be putting the actual UG mining advance to the test against the projections given not getting distracted about how else the sulphide circuit is or is not or has or has not been fed. The oxides can't float the value of the company forever either, so shareholders should just rejoice that the company has managed to time the mining of the oxide ore at Tabakoroni to perfection. I don't know how many of you play golf, but Worzel's methodology is like looking up at the fairway while swing the driver, instead of keeping ones head down. He is focusing on the wrong thing. Esh

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I hear everything you are saying Esh but Worzel has the right to question RSG forecast. If they are dealing with so many unknowns perhaps they should have placed a range on it.

"This is only in my opinion, not offered or to be taken as financial advice, DYOR"

RSG Price at posting: $1.16 Sentiment: None Disclosure: Held
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