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Paddwah26 - From my understanding, the current mine is fast becoming unprofitable but new discoveries nearby could be significant. Randgold to issue findings following 6 months survey/analysis early 2018.
Looks as though the US Presidents aim to create an economic fortress America will lead to repercussions and therefore widespread trade chaos across continents. Very bad for shares generally and good news for gold. This has all the makings of a long term shift in the order of things.
RRS hit a 52 week low this week while Stock Markets plunged. I was stuck in a snowdrift twice this week and I wasn't thinking about the price of gold! I suspect its days of being a "store of value" are numbered. If they aren't then there's money to be made but count me out.
SP weak because of new tax code passed by DRC parliament although not yet signed into statute by the President. Mining companies in DRC continue to object and say future investment in DRC will dry up. Also outbreak of fighting in Eastern DRC and upcoming Presidential election could result in civil war breaking out again. DRC no longer viewed as stable enviroment for mining and future investment. Outlook not promising for RRS share price at the moment. To answer the question specifically latest SP weakness because of outbreak of fighting and hundreds of thousands fleeing DRC to Uganda as refugees
Can anybody explain why this is looking so weak given results and why it has fallen back again the last couple of days specifically? Thanks
Seems like Accendo were right
Decided to top slice
they've just advised to sell this. DO NOT...they are totally wrong
Looks like the worse case impact to RRS of the DRC tax change is $10m per year to profits - following a statement from the company (compared to the $335m they made last year) - this all feels a bit too small to cause such a drop in the SP
It’s lost a sting 14% in just 4 days all on the back of the DRC tax situation and the possibility that interest rates will rise to a point the only the price of gold will be impacted - on the face of it, it all looks bad for this stock, however the DRC deal is not signed yet and if rates do go up lots of other riskier assets will suffer which are underpinnings this frothy bull market.
This share is going through downward momentum and the recent Congo news doesn't help either, which creates a lot of uncertainties that the market doesn't like. Furthermore, the interest rate is projected to go up in US and UK so prepare for further downward pressures. I'll stay away from this share until they sort out the Congo issue.
back in for a few today. not held this stock since December 2016. it was a big big mistake selling at �56 back then :(
There are three things which will move this SP up; a black swan event (the current market turmoil seemed to just push the price down), the DRC tax issue is resolved, with little to no impact to RRS, and finally they merger or get taken over by someone else - currently all of these seem unlikely in the short to medium term so this stock will probably drop below �60 by COP Friday - it's all a bit sad, the stock has slowly slid back from �90+ since the Brixit vote to a level lower than before the vote (compared to the gold price and it's fundamentals)
The shares are stuck in a downward motion - the markets are not interested in how successful it is and how it has no debt, or that gold is at a near 2 year high. It’s the fact that interest rates are going up so Gold wil go down and the DRC tax risk will reduce profits I’m sorry to say that there little support for the shares also they’ll just keep falling until something changes and even then it’s unlikey they’ll go up much or build on any gains. I’m disappointed as I own shares on the belief that recent wider market issues, gold in an upward movement and the health of the company would support the share price - that makes no difference. Hopefully the tax issues resolved itself and we start to see some form of benefit
I dread getting up these days to look at the price. I have invested 6 times with this share and each time it drops when I buy it. My price this time was �72. about 8 days ago. It dropped as soon as I bought it. I tell you my friends there is a devil in the world and at the moment he/she is controlling this share. Good luck to you all
No longer hold this stock in my trading account, but hold the Blackrock gold fund, so don't often look in here much these days but there is a large number of after hour buys. SP drop is frustrating and RRS certainly lag the recent rises in Gold Price. Read some where that some gold stocks are now up to 30% undervalued compared to increase in gold. Here'e an interesting read / listen from Adrian Day who believes Gold Stocks are cheap and are currently the only bargains to be found in the over inflated stock market. Adrian believes the shift in sentiment in gold stocks will not come until the pog is over 1400 dollars. https://investingnews.com/daily/resource-investing/precious-metals-investing/gold-investing/adrian-day-gold-price-top-stocks/ More technical than the previous but still worth a read. Talks about the HUI index and the potential upside this year for gold stocks. http://www.mining.com/web/gold-stock-upside-huge/
https://www.rt.com/shows/keiser-report/417979-episode-max-keiser-1185/
I'm disappointed with the SP move over the past 48hrs, I too thought the results and market volatility would either increase gold price or at least provide a floor to gold stocks - it looks like other gold stocks have suffered less that RRS. I'm aware that the DRC tax situation is not ideal, however making money and paying tax is better than making no money at all - also I'd be surprised if the law is passed as it all feels like brinkmanship with a middle ground being the final position - we'll see what happens over the next few weeks regarding that point The last two Qtr updates have been seen badly by the city regardless of the gains in production and profits, along with the jump in dividend - it feels like this stock is doomed as if interest rates increase Gold will fall (unless there's a negative event) so RRS will fall too, equally the city doesn't react positively to it's results regardless of the upward direction, so I'm not sure what will help this stock go up other than a 'black swan' event, maybe someone will take it over or merge with it?
of course it is rigged normally gold would go up in these conditions and pull backs but it didnt which tells me there is a bigger pull back coming and someone is holding gold back. Watch Kazer from RT today he is talking about how gold and silver has been rigged. worth a watch
I agree with your analysis and with todays huge 2% drop in the Footsy this may well be the harbinger of a near future stock market adjustment. The eyes of the greedy Africans will begin to light up in direct ratio to the inevitable increase in gold price. No use Chief Execs preaching about short term greed as jam today is what really matters to the greedy. After all, they and their cronies will ship out to their Cote d'Azur retirements before the next revolution and be blowed to what they leave behind. Still, as a shareholder, I would expect Bristow to show his angst in a public way bt it will get him and Randgold absolutely nowhere. Message to Bristow -Gear up production in the Congo significantly, spend little on the infrastructure and plan your exit strategy now.
Look for the reasons why. Stocks are down due to concerns about inflation and prospect of accelerated tightening by the FED and more interest rate rises due to strong signal of booming US econ. Bearish views of stocks this year and high historical PE ratios means people sell and algorithmic trading drops it further. Everything drops. Add tax in DRC for good measure.Now if stock drop due to recession anf concerns about week economy gold becomes flight to safety and booms. I suspect we see the former before the latter this year as everyone realises that US isn't in such good shape.
I moaned about this exact point over on the CEY board. It's so frustrating.
I own RRS via units in a Blackrock Gold Accumulator. I also own shares in silver miners and Newcrest. So when the bloodbath occured in stock markets in the USA and Asia I naturally assumed precious metals would see double digit rises. I assumed wrong, is this occuring because the gold market is rigged?
A drop of over 7% in one day for Randgold despite the softener of a doubling of dividends. Phew !! Would not be surprised if this is the beginning of the end for the Congo as the unwritten message appears to be "We will soon want more than 50% of gross profits plus ongoing selective grease palming. If you leave then our friends the Chinese who grease corrupt palms as a matter of course will be invited in" Would not be surprised to see an initial tax law which requires all miners to pay 3/6/12 months advance tax. As soon as such demands start, Randgold and all other miners have to walk away.
Yes, I would certainly say so. Market hates uncertainty...expect some shorts have been opened. Not a good day.