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BAMAKO, March 30 (Reuters) - Transitional authorities in Mali will review mining contracts after an official audit of the sector advised that the state was not receiving a fair share of gold-mining revenue, the council of ministers said on Wednesday.
Mali is one of Africa's largest producers of gold, which is its top export. Companies operating in the country include Barrick Gold Corp ABX.TO and Resolute Mining (RSG) .
The council said an action plan would be implemented and would include creation of a commission to renegotiate mining deals, a move to repatriate cash earned from gold exports and the adoption of a mining sector environmental code.
"The action plan will be implemented via a participatory approach, including the mining companies themselves," it said in a statement without providing a schedule for the measures.
Soon after coming to power in a 2020 coup, the military junta vowed to review mining contracts signed with companies by previous administrations.
I thought it may send the shares down but perhaps the potential to resolve the vat issue and put taxes on a clearer footing is considered a positive.
Another big step up on asx last night - should open over 21p
RSG will be added to the S&P/ASX 300 Index at the next rebalance – Effective Prior to the Open on March 20, 2023
bonks
9p?....nice one
https://www.youtube.com/watch?v=SsJZlOGshC4
Link to presentation notes above
https://wcsecure.weblink.com.au/pdf/RSG/02635867.pdf
With regards the Ore Reserves and Mineral Resource Statement announced today
· Mineral Resources increased by 1.7 million ounces (Moz) to 11.2 Moz of gold, net of depletion
· Ore Reserves have increased by 0.6 Moz to 4.6 Moz, net of depletion
· Syama Mineral Resources increased significantly following exploration success at Syama North
· Mineral Resources at Syama North increased to 3.2 Moz and Ore Reserves increased to 854 koz, with 10% (85koz) of oxide material
· Further 126 koz of Mineral Resources at Syama Underground converted to Ore Reserves due to improved mining productivities
· Mako Ore Reserves and Mineral Resources reduced in line with mining depletion
Ore Reserves have increased to 4.6 Moz of gold and Mineral Resources have increased to 11.2 Moz of gold after accounting for the effects of mining depletion, improved productivities underground and exploration success.
At 31 December 2022 Resolute's direct share of Ore Reserves was 3.8 Moz and Mineral Resources of 9.1 Moz.
The exploration success at Syama North has added 2 million ounces of gold to the Mineral Resource this year and added 850,000oz to the Ore Reserve
Resolute's Chief Executive Officer, Mr Terry Holohan, commented:
"The continued success of the drilling program at Syama North over the second half of 2022 exceeded our expectations. The drill rigs are still turning on this contiguous strike discovery of over 6km which remains open at depth. At this stage the 850 koz of Syama North Ore Reserves focus only on the widest sections of the A21 pit, thus we expect further updates later this year as in-fill drilling continues delineating additional economic mineralisation. It is also worth noting that the 10% oxides delineated at Syama North now represent some of the highest grades of oxides at Syama such that they will get processing preference once mining starts in earnest.
Also due to recent sustainable efficiency improvements at the Syama underground operation over 2022, the Company was able to convert a further 126 koz of the existing Mineral Resource Estimate to Ore Reserves.
"The company now turns its focus to the Syama North pre-feasibility study (PFS), which is intended to be the first step in exploiting the sulphide reserve, due for publication in the middle of 2023. Significant additions to our Mineral Resources and Ore Reserves, such as Syama North clearly demonstrate that the Syama Belt is surprisingly under-explored and justifies the need for further exploration work to be undertaken along the prospective >85 km of strike."
Pleased to see the huge turnaround in fortunes since the backend of 2021. Resolute are now virtually net cash positive and will be certainly by the end of Q3 this year. Today's statement shows just how quickly the company are replenishing not only reserves (at higher grades) but also the resource base from which to delineate further prospective zones along strike.
The recent presentation summarises the more important events that happened last year namely;
• 5 consecutive quarters of incremental production growth to Q4 2022
• Gold production of 353,069 ounces (oz) at an All-In Sustaining Cost (AISC) of $1,498/oz
(CY22 Group guidance: 345,000oz at $1,425/oz)
• Revenue of $651.1m from gold sales of 357,447oz; average realised price: $1,819/oz
• EBITDA of $148.2m
• Underlying NPAT of $20.3 million (2021: -$93.5 million)
• 58% increase in Syama North resource to 34Mt @ 2.9g/t for 3.18Moz
• Successful equity capital raising of A$164m
• Year end Net Debt of $31.6m (31 December 2021: $228.8m)
Resolute has 130,000 ounces hedged at slightly more than $1900/oz in the latter three quarters of this year which is 5% more than current spot.
2023 Production and AISC Guidance is 350,000 ounces at AISC of $1480/oz
Good news flow to come off the back of results end of year and from stragic jv working drilling has starter with African gold Corp. https://www.marketscreener.com/quote/stock/AFRICAN-GOLD-LIMITED-50061367/news/African-Gold-JV-Partner-Starts-Air-Core-Drilling-at-Mali-s-Syama-Shear-Zone-JV-Project-Shares-Jump-42988390/
Can't buy shares the volume is so low the max amount to buy I'm over the threshold
Nice :)
The updated Mineral Resource Estimate for Syama North increases 58% to three million ounces of gold at a cut-off grade of 1g/t Au
One key point is that 'the majority of the Mineral Resource is located within 150m of the surface highlighting the open pit potential of the deposit'.
Some good intersections but this (outlier) was very impressive!
QVRD587 - 18m @ 70.40g/t Au from 198m
The price of gold climbed above $1900/oz for the first time since May. Good news for gold producers like Resolute who already had generous hedging agreements in place and which are likely to have improved in the next quarterly update as the company tend to secure better put prices compared to the prevailing market price.
Reuters reports the rising gold price was further buoyed today by slower growth in U.S. consumer prices increasingly the liklihood of the Federal Reserve continuing with smaller rate hikes and possibly reversing course later in the year.
U.S. consumer prices rose by 6.5% in the 12 months to December, the Labor Department said Thursday, announcing the slowest inflationary growth in more than a year and indicating smaller rate hikes ahead by the Federal Reserve. The Consumer Price Index for All Urban Consumers, known in short as the CPI, slowed exactly as forecast by economists, after a 7.1% annual growth reported for November.
“This was the smallest 12-month increase since the period ending October 2021,” the Labor Department said in a news release.
The CPI hit a 40-year high in June when it grew at an annual rate of 9.1%, versus the Fed's inflation target of just 2% per annum. In a bid to control surging prices, the central bank added 425 basis points to interest rates since March via seven rate hikes. The Fed, which executed four back-to-back jumbo rate hikes of 75 basis points from June through November, imposed a more modest 50-basis point increase in December. For its next rate decision on Feb. 1, economists expect the central bank to announce an even smaller hike of 25 basis points. The Fed funds rate — a tool used to gauge the odds for a certain quantum of rate hike — was at over 80% on Thursday for a Fed increase of 25 basis points in February.
The dollar was at a six-month low versus a basket of six major currencies that included the euro and the yen.
Historically rsg has been much loved by short traders on the asx (over 10% at one point). it now has the lowest level of shorts since I have been following it (at around 1%) - hopefully a good sign.
With the increase share issue and the price nudging up it is back in the asx 500. With the past fall in mcap I am fairly sure it was also moved out of a gold indexes (VanEck?) hopefully an increased mcap will help reentry here as well.
Turn around year positive revenue 2023 1st quarter and dividends to be announced
Fortune favours the brave! :)
With the capital raise all but complete, the balance sheet significantly improved and operations to possibly exceed guidance in Q4 this is the time to buy Resolute Mining. The turnaround in Dollar sentiment coinciding with these changes adds further weight. Shorts shot up prior to the raise but are beginning to reduce now.
I just took 40k @ 9.22p.
GLA
Can't buy shares on 212 platform volume The maximum order and position sizes are based on each stock's average traded volume and liquidity.
AUD - Australian Dollar
What is the offer price per +security for the institutional offer?
AUD 0.16000 = 9p ;)
According to the presentation the retail offer is only available for holders in New Zealand and Australia
Not great for existing shareholders but short term price weakness means Resolute will move into a net cash position during H2 2023.
The placing is around 25% discount to the asx price. $140M is underwritten. Probably now held by some of those shorting it since the beginning of the month! The last time we (lse listed holders) were not eligible for any under the entitlement offer, hopefully we will not be locked out this time.
Thank you for posting the October Sprott report! That was an eye opening read with much significance placed on the third quarter 2Moz Syama North resource update and revisions to future production forecasts.
Focusing on this the updated Mineral Resource estimates for Syama North increased 40% with the PFS now underway to determine development options at the Sulphide processing circuit.
The basic premise being confidence is now so high in the Sulphide processing circuit and the liklihood of converting significant Resources into Ore Reserves that management are changing tack from the high capital cost ($100m) development of Tabakoroni underground and instead will expand the Sulphide circuit with lost capital cost expansion options.
"The Syama North open pit option has been prioritised due to it being lower capital, its proximity to the processing facilities and strong metallurgical similarities to the existing Syama Underground mill feed" - Q322 update
Note the high praise in the Sprott report
"We think the recent discovery of blow-outs at depth, and resultant 3Q22 2Moz resource at Syama North, was either missed by the market, or the value won’t be reflected until the company’s production and debt profile are back on course. Syama North is >2x larger than the prior discovery Tabakaroni, which is smaller, requires underground development, and has more complex metallurgy.
The real prize here is the 1.7Moz @ 3.2g/t sulphide resource. Firstly, we think this
(i) likely extends the mine life toward or over 20 years at 140-150koz pa; ideally with
(ii) the ability to cherry-pick some high-grade pods in early years to improve cash flow. The real prize though is
(iii) the ability to immediately use a ‘spare’ (requires minor modifications) ~1Mt pa capacity in the sulphide plant to grow sulphide production 210koz, or (iv) in the long-term grow to ~240koz by converting some of the oxide capacity to float, or above that with a second expansion."
The company plans to release definitive 2023 production and cost guidance to the market in January and has suggested it expects Sulphide gold production for 2023 and 2024 to average around 160,000 to 165,000 ounces per annum.
Last quarterly update strong with hedged ounces at $1900/oz
The Group maintains its full year 2022 production guidance of 345,000oz, noting the strong performance at the Syama Sulphide and Mako operations which are expected to offset Syama Oxide's lower production. The higher production at Syama Sulphide and Mako is expected to largely mitigate inflationary pressures including elevated fuel and consumable prices experienced in 2022. As a result, the Group maintains its cost guidance at an AISC of $1,425/oz.
Net debt below $100m by end of Q1 March 2023
I did mention 9p a while back mate - I think we're really close for PMs now, hardly anyone is making money out of mining them now so we're going to bottom out somewhere over the next six months or so for sure IMO.
10 year low?..blimey
50p target thereabouts