"RSG always loses votes on 'colouring' their statements and definitions - one such example is with their definition of 'net debt' - they manage to deduct Mali receivables, gold bullion(stocks) and listed investments from their definition of net debt - most reputable companies such as AQG apply the proper meaning to net debt being interest bearing liabilities less cash. So if we apply the correct formula to net debt then RSG's position at 31Dec18 was US$107mil being drawn debt facility $US100mil plus Mali bank overdraft of 20billion CFA being US$35mil less cash of $A38.7mil being US$28mil - and we can probably assume that they have now drawn the extra $US50mil from the additional debt facility so net debt would now be US$157mil"
From RSG's Dec 2018 quarterly report
"As at 31 December 2018, total borrowings were A$173m comprising US$100m drawdown on the Facility and the net balance of the Company’s unsecured overdraft facility with the Bank of Mali and in-country receivables."
Also from the same report
Cash $38.7 million
Bullion $39.8 million
Total cash and bullion (ie highly liquid assets) = $78.2 million
Drawn debt of A$173 million less cash and gold of $78.2 million = A$98.4 million (excluding value of listed investments of A$38.9 million)
The Mali debt is a local bank facility set up for operating purposes and I think it's perfectly fair to balance in-country receivable against the credit drawn down in this account.
The fact is at Dec 31 2018 RSG had net debt (excluding value of listed investments) of A$98.4 million whilst AQG had net debt of US$245 million or A$344 million (good luck with this debt load if commisioning of Copler isn't as rosy as the presentations make out).Esh
RSG Price at posting:
$1.03 Sentiment: Hold Disclosure: Held
(20min delay)
