Resolute to sell Ravenswood, page-119

Good retort @eastwest101

I'm not sure which post you responded to as the Horn of Africa comment came from @miningnut

The irony is that instead of being so frivolous with his commentary on RSG, this poster should be looking carefully at the progress of the Syama UG mine because his favourite magnetite miner GRR has already commenced $10 million in UG studies at Savage River. By the time that mine goes UG, RSG through its experience with sub-level caving might have a lot to teach the Chinese operators of Savage River and many other operators (or want to be operators) of bulk UG mining operations. RSG's experience at Syama has the potential to be industry shifting both in terms of mining method, adoption of technology and the model they are adopting of power generation through solar/heavy diesel hybrid technologies with third party fund and supply offtakes. Frankly RSG is the most innovative gold mining company I have come across in all my time investing in this space. Their vision is in place, their feasibilty studies are in place, their finances appear to be in place, it's just a matter of their smooth execution.

You also can't fault them for missing timelines on this project. The board of resolute approved the project for an immediate start in June 2016 (see the announcement below).

https://www.asx.com.au/asxpdf/20160630/pdf/43878k6l4spc5z.pdf

Figure 7 of this announcement shows an underground build in production in 2018 and 2019 which is now being delivered on.

The only contentious promise that was made and can be argued to be a miss for the company is the promise that

"Pre-production capital of US$95 million which will be fully funded from current balance sheet and future
operating cash flows"

It wasn't possible to fully fund the project from operating cash flow and the money they had but in the end the UG mine is nearing completion with no additional share dilution, so our interests so far have been reasonably well protected, plus we have received an expanded and more ambitious version of the feasibilty since then. Also considering the scale and audacity of the project being delivered and the difficult location the project is being delivered in we are doing very well IMO. There is a saying about "African time" that you'd need to have visited this part of the world to understand. African time doesn't move as fast as "our" time. If you couple this with infrastructure challenges I think the company has done well to get this far.Esh