Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Resolute Mining is an off the radar gem, trading on a positive net cash position.
On gold production volumes of 330,000oz to 340,000oz and a strong gold price there is fantastic free cash being generated here.
Will be some serious divi payments down the line.
New presentation just out from Resolute Mining.
https://www.rml.com.au/wp-content/uploads/2023/11/RSG_Presentation_MinesMoney_November-2023.pdf%0A
What do you mean by 212 liquidity?
Not sure about buying but I can certainly sell my 47120 shares.
If it can break above the current price, which is a resistance level, I can see it going on to 27p, then eventually onto top off the upward trend channel around 35p.
Personally I'm holding out for around 70p before considering top slicing and leaving profits to run.
Dividend likely next year which should shoe a nice lift to the sp when it happens.
The potential for gold to rise in the next few years is quite large imo. 2300 likely in the short term and I wouldn't be surprised to see 3000 eventually hit. ofc, I could be wrong, but it does keep testing the 2080 resistance and eventually that resistance will break. Just wait for the interest rates to start falling and Gold should start motoring up.
When 212 Liquidity opens up this will go plus 50p can only by or sell 940 shares at a time still
Newly released 3 year production and cost forecast
- Total group gold production from exceeding 1 million ounces from 2024 through 2026
- AISC reducing by over $200/oz from current $1450/oz level
“The release of our three-year forecast during the quarter shows the company's organic growth path to increase ounces and improve margins across the group. The Syama North Phase I Expansion project should enable stable gold production in excess of 260 000 oz/y with the flexibility of having two reliable sources of ore. At Mako, we have two extremely strong years ahead of us with production around 135 000 oz/y at very healthy margins,” Holohan said.
Resolute now net cash positive for the first time in what must be a decade!?
At the latest quarterly update to September 2023 there was a $19 million swing to the green in liquid assets, as net debt of $17.2m swung to $2m net cash on the balance sheet! This figure included Cash and crucially Bullion of $78.0 million which should have increased in value since quarter end as the gold price continued to rise.
Internal Q4 cash generation forecasts must look particular strong even despite the reduction in guidance with capex forecasts reduced. Net cash on the balance sheet may well be $20m+ by the end of 2023.
Phase 1 north expansion should be funded by ravenswood sale money coming into resolute this year and stay cash positive
For future reference: https://www.londonstockexchange.com/news-article/RSG/summary-of-half-year-results/16093182
News soon on sale at ravenswood mine
Ravenswood Gold Mine from CAG to the Buyer.
Transaction consideration comprises total cash payments to Resolute of up to A$300 million as follows:
• A$100 million of immediate value paid on Financial Close, represented by:
o A$50 million of cash; and
o A$50 million in a Promissory Note;
• Up to A$50 million via a Gold Price Contingent Payment instrument; and
• Up to A$150 million via an Upside Sharing Payment instrument.
Promissory Note (A$50 million)
• Quantum: A$50 million to be paid in cash to Resolute at maturity.
• Interest Rate: Annual coupon of 6% to be capitalised and paid to Resolute at maturity.
• Maturity: Matures at the earlier of a Liquidity Event (defined as disposal, IPO or winding up) with a maximum term of seven years.
• Security: May be taken on a subordinated basis in conjunction with project financing to senior lenders.
• Distributions: Any equity distributions by the Buyer matched by equivalent repayment of the Promissory Note until such time as the Promissory Note has been repaid.
Gold Price Contingent Payment Instrument (up to A$50 million)
• Gold Price Bands: A Gold Price Contingent Payment is payable to Resolute four years following Financial Close based on the following bands:
o A$10 million if the average gold price is greater than A$1,900/oz;
o A$20 million if the average gold price is greater than A$1,975/oz;
o A$30 million if the average gold price is greater than A$2,050/oz;
o A$40 million if the average gold price is greater than A$2,075/oz; and
o A$50 million if the average gold price is greater than A$2,100/oz.
• Production Threshold: Payment of the Gold Price Contingent Payment is subject to the cumulative ounces produced from Ravenswood following Financial Close exceeding 500,000oz of gold over the four-year period and is subject to adjustment if the production plan adopted by the Buyer is reduced or lower than expected.
Upside Sharing Payment Instrument (up to A$150 million)
• Objective: The Upside Sharing Payment is designed to align Resolute with investment outcomes of EMR Fund.
• Trigger: Any Liquidity Event including disposal or a qualifying IPO.
• Method: Determined by reference to the gross money multiple to EMR Fund which is the gross proceeds (before payment of the Upside Sharing Payment) divided by the total capital invested in the acquisition, development and operation of Ravenswood by EMR Fund.
• Quantum: Resolute will receive the Upside Sharing Payment from the Buyer based on the amount by which the gross money multiple exceeds a minimum threshold up to a cap of A$150 million as follows:
o A$7.5 million for each 0.1 that the gross money multiple is above 2.5 up to 4.0; and
o A$5 million for each 0.1 that the gross money multiple is above 4.0.
Conditions Precedent to Financial Close
• Approval from Au
People are not that intrest in gold mining companies this is a hidden gem has great assets as the last 2 or 3 years has turned the company into a profitable business not many around today. Keep adding till 6months 1 quater 2024 this will be much higher in share price value and I would imagine a dividend to be restored
Why are so few shares traded here? Sometimes I only see 1 trade for an entire session.
Resolute did not declare an interim dividend, unchanged from the previous year
In the right direction but strong management decisions for growth and shareholders will hopefully be rewarded in the next results
Gold back in bullish mode $2000 soon
27p broker update
And news reports out 27th july
Surprised no word from RSG about this:
https://wcsecure.weblink.com.au/pdf/RSG/02670855.pdf
Big news on its way today.
Latest price update is 0.35p off the back of the trading results.
Quarterly Activities Report looks very positive, even reducing the AISC in this high inflation environment and not long to go before cash and liquid assets is worth more than debt on the balance sheet.
· Quarterly production (gold poured) of 92,259 ounces (oz), the sixth consecutive quarter of increased production
· All-In Sustaining Cost (AISC) of $1,453/oz for the Quarter, a 6% reduction from the December quarter benefiting from a build up of stockpiles at both Syama and Mako
· Quarterly gold sales of 88,151oz at an average realised gold price in line with the average spot price of $1,890/oz compared to 93,326oz at an average realised gold price of $1,817/oz in the previous quarter
· Cash generation of $16.2 million excluding debt, interest payments, working capital and other movements
· $25 million was repaid on the Group's term loan facility, and $5 million was repaid on the Revolving Credit Facility (RCF)
· Net Debt of $19.9 million (down 37% from $31.6 million), including Cash and Bullion of $75.8 million. Available liquidity (Cash, Bullion and undrawn RCF) of $155.8 million
· Ore Reserves and Mineral Resource Statement released on 8 March 2023 indicating a 15% (0.6Moz) increase in Ore Reserves to 4.6Moz and an 18% (1.7Moz) increase in Mineral Resource to 11.2Moz of gold, both net of depletion
· Syama North Mineral Resources increased to 3.2Moz, and Ore Reserves increased to 854koz
· Syama North prefeasibility study (PFS) on track, with expected outcomes to be available mid-2023
· On track for full year guidance for 2023 of 350,000oz at an AISC of $1,480/oz
April 27 - Resolute Mining RSG.AX :
* QUARTERLY PRODUCTION (GOLD POURED) OF 92,259 OUNCES (OZ)
* ALL-IN SUSTAINING COST (AISC) OF A$1,453/OZ FOR QUARTER
* QUARTERLY GOLD SALES OF 88,151OZ AT AN AVERAGE REALISED
GOLD
PRICE IN LINE WITH AVERAGE SPOT PRICE OF A$1,890/OZ
Source text for Eikon: ID:nASX5nqnZD
Further company coverage: RSG.AX
AISC had got lower while the average spot price has risen = more profit for RSG.
There are obvious risks due to the location, but if you delve into rsg it offers a lot more than shg imo. Bigger production and it hasn't really started on exploration yet or reducing costs. It also does not need to be funded again, as future exploration will come from fcf. If gold price continues to rise all the miners should do very well, but the potential of rsg is far greater than shg.
So far, so great.
Well it will be interesting to see who has been buying recently. Nice £285k buy today.
Dodgy location - sell looks like 18/19 possible
Doesn’t sound good - id look into Shanta or Srb
I was thinking the same when I read it yesterday. I suppose it brings some stability to the area which has put off many investors and quite understandable.
This interview is a month old but worth a listen.
https://youtu.be/weDGywQXzJo