Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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On the move following comments in an interview with temporary CEO that Resolute could be net cash positive by year end.
Sale of Bibiani is expected to reduce net debt down to $80m and move to net cash will expose future ounces to spot prices (rather than the current situation of heavily discounted contractual hedges).
No mention of missed targets and on course to meet guidance (at this stage) of 350-370koz
I note that some gold miners recently started buyback programmes, particularly those also producing silver (Trans-Siberian, Griffin), which likely has an earlier upside. Whilst you might be right that gold has some more downside / drift ahead, the buybacks convinced me to start building positions where it's tricky once general buyer demand returns.
Platinum might have started the handle before its next rise to ~$1500 (likely after a squeeze of the crowded dollar short positions - not too concerned as merely a technical artefact that shall pass). Iridium most promising for Tharisa.
I'm searching for non-PGM miners of critical supply chain metals, e.g. indium, gallium, terbium. Any ideas other than the CRTM vehicle? For V/Ti I'm increasingly optimistic about Jangada.
For someone who has such a high opinion of themselves and conducted hundreds of TV interview it's quite funny you've completely misinterpreted what I typed. But somehow not surprising as you're attempting to deflect attention away from your bizarre behaviour.
I haven't said the defamatory remarks you made were about myself. Your defamatory comments were made in relation to former Managing Director and CEO John Welborn and your libellous remarks about Hummingbird's activities and "tribute payments" amongst others.
With re: RSG You've attributed cost improvements from Q3 to Q4 as a direct result of Mr Gale taking over as an interim CEO (I can copy post across from HUM bb). No explanation to why though.. possibly because you are running your mouth and know that in fact RSG are following the same mine plan.
What do you know about Mr Gale that makes him seem more trustworthy and not another "spivvy salesmen"?
Which brings us back around nicely. Making false and malicious statements that could damage the person's / company's reputation is an offence.
Look, Shareminator, you obviously don't "get business". A good CEO can't save a hopeless cause, but he can make the best out of a moderate opportunity. But a bad CEO will almost certainly blow even a golden chance. So, yes, I pay a lot of attention to a company's leadership.
(IMO) RSG had a spivvy salesman as their CEO. Hence, a lot of their problems. Fortunately, he's now gone, and Stuart Gale seems far more trustworthy. Certainly, the standard of the company's official reporting has improved.
As for Hummingbird, Dan Betts is still in charge. And, as long as he is, it's no more than a punt stock for me. IMO, he doesn't know what he's doing.
Oh, and "stocks lie, but in bonds there is truth". So we all need to pay attention to the world's bond markets (YCC and all), especially when thinking of a financial asset like gold.
Now can you stop your imbecilic harassment? Frankly, I don't give a monkeys, and you're just making yourself look as dumb as that BushyTailed Squirrel over on the HUM board.
p.s. I've had a good deal of media training, and I've given some hundreds of press and TV interviews. If my sincere opinion is that you are stupid, that is derogatory but not defamatory. There is a difference.
I wrote 'other investors', not "'other investors' on the LSE chat forum". Please consider my comment on shorting long-term treasuries: This was not the most lucrative trade for the first 9 months. We clearly have different investment time frames, and that's OK by me.
Answer me this, who are these 'other investors' on the LSE chat forum that are posting about YCC?
I'll wait..
Apologies to the other readers for this distraction. t_s, I remember your comment on AAZ about selling at 170p and it turned out to be the better strategy than just holding (which is what I have and will continue to do). So, well done on that timing.
But given you're interested in gold I must say I am surprised/shocked you find it odd that other investors spend a lot of time contemplating YCC these days. There are few things more relevant to the future gold price upside. I very much hope TBTT and myself are not the only ones considering its implications. I have held TBT (20+y treasury shorts) since April so wouldn't randomly comment on YCC.
As said, investing is like riding on a public bus. You don't get to choose your fellow passengers. And you do get all sorts - including a fair number of people you'd cross the road to avoid..
TBTT - creating new profiles to applaud yourself?
Expart's first post bringing up YCC here soon after you left another derogatory remark about the CEO. YCC seems to be a subject only you are keen to post about, I've seen you bring it up on THS, SLP, HUM so it must be just a coincidence this new user who is indebted to you would bring it up here...
Hi Expart!
Thanks for that.
I agree with your post, except that I think it might pay to wait awhile on gold - going too early even though you're right long term can be costly in terms of final profit! I'm thinking that gold may have a ways too fall (optimism over economic reopening is still rising, all of last year's hot money in ETFs still needs to sell out), and that the Fed will need a "market event" (a.k.a. a credible excuse) to bring in full Yield Curve Control (YCC). YCC will come, of course. It's inevitable now. But it may take a few months. And those months could be tough for gold miners.
Much more confident about the prospects for industrial metals (amongst which I would include platinum-palladium-rhodium).
Agreed, if one is confident of higher gold prices, Resolute is cheapest producer for price per AuEq, and due to the high AISC, its share price could rise more than others. However that's only after the bad rep has faded which might take a few more positive results being reported.
Now with the EU openly preparing for yield curve control, and yesterday's disastrous US 7y treasury auction, gold's rise is likely imminent.
TBTT, many thanks for your insights particularly on SLP and THS. Many people owe you.
It's notable how much less spivvy bull**** there is now John Wellborn is gone.
I actually believe they might meet their costs and production guidance this time.
Sorting debt is always good for shareholders should be back past 50p in no time happy with guidance production for the year and gold will be much higher after April
IMO, this isn't a day to buy any gold miner, but Resolute's results are better than I expected.
After CEO John Wellborn's sacking, there are signs this company may turnaround. Though as a high cost producer, a lot depends on the gold price.
When the price of gold hits 2I this will fly brought and holding
Quarterly Activities Report for the period ended 31 December 2020
· Quarterly production of 89,888 ounces (oz), a 3% increase compared to the September quarter, bringing CY20 production to 395,136oz (CY19 production of 384,731oz)
· Realised gold price for the quarter averaged US$1,719/oz compared to the average spot price of US$1,877/oz
· All-In Sustaining Cost (AISC) of US$1,002/oz for the quarter bringing year to date AISC to US$1,074/oz (CY19 AISC of US$1,095/oz)
· Cash and bullion of US$106.5 million reducing net debt to US$230.4 million at 31 December 2020
· Agreement reached for sale of Bibiani Gold Mine for US$105 million (proceeds will be used to repay debt).
· Tabakoroni Mineral Resource increased to 1.3Moz at 4.9g/t Au
Outlook
· Guidance for 2021 of 350,000oz to 375,000oz at a forecast AISC between US$1,200/oz and US$1,275/oz inclusive of corporate overheads. The focus for 2021 will be operational consistency and cash generation.
Remember that Aggreko get half of the savings that they make on power. I think that it is costed in, but the savings are not as great as the originally flagged and with Gale in charge they are just starting to be more honest about their true costs.
I am however, surprised that they only reduced debt by 3M even with paying Senegal 7M.
Let me know what you number crunching throws up. I think though, that you may need to wait until the financials a the end of the month for a little more clarity.
'During the quarter Resolute paid its first dividend, US$7m, to the Government of Senegal' It seems that Mali and Senegal get far more than the shareholders ever do....
Well I was wrong on that!
I should have learnt with this by no to have just traded the rise after the Bibiani announcement and not wait for the quarterlies.
Mako production was OK. Syama a bit down on sulphides but mainly down on the oxides at as stated in the update.
It is the future cost and guidance that have really knocked it (plus, that net debt has only reduced by $3M in the last quarter) Syama costs stay around what they have been (in practice rather than guidance) with perhaps the oxide creeping up a bit. There is no obvious significant cost benefit with the new power supply coming in. The impact is mainly from the lower production and increased cost at Mako, production falls about 50k oz (which was expected) but the cost increases from $750 to $1200 which is a big jump.
Probably the only good news, is that even with the disruption, they seem to have got the sulphide circuit producing efficient now. It is long term, but is never going to be as cheap as they used to say.
It may be that they are being more realistic and upfront about costs now with JW gone, time will tell. I have been told that they will provide much needed clarity about the Mali tax situation at the end of the month.
The December quarter should be a good one for them. They should have more unhedged gold, so the average price received will be higher.
Not only did they have the strike and consequent roaster shut down in the September quarter the grades poor were at Syama, in particular the oxide, this should be much better this quarter as they use ore from Cashew. Mako should be up a bit as well as the reduction last quarter was due to scheduled planned shutdowns.
Going forward, if they can, as it looks like, keep the lower cost oxide stream going at Tabakoroni it will give them some time to get their debt down before any capex is need for going underground.
With the Bibiani sale there does seem to be a change in sentiment, a good quarter will help keep the momentum going. We will find out in early Jan….
https://news.sky.com/story/brexit-eus-ursula-von-der-leyen-says-there-is-a-path-to-an-agreement-12163875
Brexit: EU's Ursula von der Leyen says there is a 'path to an agreement'
"The path may be very narrow but it is there," the European Commission president says on hopes of a deal between the two sides.
Well, Oz likes the deal - 10% up overnight. Presumably, London price should correct to match.
400,000 ounce per year gold miners don't usually trade with a mcap of £475m!
I think a fair number of reservations are already built into the bargain basement price. Hoping that the new CEO will be a great deal more competent and a lot less of a bull**** artist!
I still have some (well quite a few) reservations about rsg, but agree it is cheap at this price. I was holding off until it was clear how they would fund going underground at Tabakoroni. They also seem to have pushed back on the start date for this, assumedly pressure to get debt under control first.
If we get some clarity over the tax situation and they hit their targets then it does have the potential to jump on the next quarterly in Jan (but I have thought that before ...)
I was surprised that we got to hear first, so hopefully the asx will push this up tonight.
I've bought a few today using much the same logic.
Australia hasn't yet had a chance to react to this news, which I believe it will take as a big positive. All in all, I make it that Resolute is oversold now, and hopefully a new CEO will mark a new beginning for the company.