RSG (ASX) Something Fishy Here!

Originally posted by eshmun ↑

Yes. I wouldn't worry about the day to day gyrations of the share price or the gold price for that matter and I certainly don't think the last few days of trading are worth bothering the company or regulators over.

If anything the unprecedented sell off from its $1.44 high in August last year should be the subject of investigation as the selling was based on no fundemental news having been released to the market. As mentioned in a previous post, prior to this sell off the company also traded in a counterintuitive way with its share price rising against a background of a falling USD. During those months RSG actually bucked the trend in comparison to its Australian peers.

You may want to start to understand the fundamentals here if you want to remain invested.

The company is building what promises to be a very long life low operating cost asset at its UG mine at Syama in Mali. There are some important milestones that must be met in the next two quarters, ie being able to implement and commission new equipment in the mine and have it reach steady state/commercial levels of ore production of 200kt/month. Part of this milestone has already been achieved IMO because the mine development is advanced enough to support the targeted levels of production with enough ore drifts already having been opened in the sub level cave. The other milestone is being able to show to the market that the recoveries from the sulphide circuit also meet the targeted 85% from Project85 and this can only happen once the majority of the sulphide ore is sourced from the UG mine at Syama. The dates expected to reach these two milestones are the end of June for the first milestone and probably not until the end of Sept for the second milestone as June quarter production will still contain a mixture of sulphide ore sources so recoveries will be better matched against a full quarter of commercial production from the UG at the end of the Sept quarter.

Once these two milestones have been achieved shareholders will be able to breath a big sigh of relief as the backbone of the future of the company will be fully formed. The arms of the company then need to be grown by building the low carbon roaster to maximise the gold recovery further and also recover over $100 million of gold in concentrate stockpiled on site. Finallay the transition to the new Hybrid power station will be the legs of the compamy which will see Syama become a low cost monster mine capable of running into the future for more than 14 years.

The story is strong but don't be mistaken, the current value of RSG and it's bright future rests entirely on milestones one and two being achieved, ie the successful building of the backbone. Should that fail the company will find trouble and end up spuirming like a twisted mess on the ground going absolutely nowhere.

If you are looking at the daily share price fluctuations for signs of the future of this investment and this company you are very much looking in the wrong place IMO. There is nothing fishy going on here at the moment, it is just a fair balance between the bears and bulls. Uncertainty exists and while it does there are never a shortage of people willing to try and take advantage of it. Many people in the market make a living based on very short term fluctuations and don't care one iota about the bigger picture. Esh

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ESH Quote:

The other milestone is being able to show to the market that the recoveries from the sulphide circuit also meet the targeted 85% from Project85 and this can only happen once the majority of the sulphide ore is sourced from the UG mine at Syama.

Q:
Do you think targeted recoveries should be fairly predictable because they could be similar or identical to the open pit deposit above?

I’m not a Geo just a sincere Question.

No.	Vol.	Price($)
10	268377	39.0¢

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268377

39.0¢

Price($)	Vol.	No.
39.5¢	234396	6

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39.5¢

234396

No.	Vol.	Price($)
1	20000	1.245
14	458433	1.240
12	312067	1.235
6	139692	1.230
6	131961	1.225

No.

Vol.

Price($)

20000

1.245

458433

1.240

312067

1.235

139692

1.230

131961

1.225

Price($)	Vol.	No.
1.250	371388	17
1.255	220916	10
1.260	134993	10
1.265	104166	6
1.270	38032	5

Price($)

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1.250

371388

1.255

220916

1.260

134993

1.265

104166

1.270

38032

(20min delay)
Last 39.0¢		Change -0.010(2.50%)		Mkt cap ! $1.543B

Open	High	Low	Value	Volume
38.5¢	40.3¢	37.5¢	$8.001M	20.41M

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