Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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It's true the rising gold price only began to effect Resolute sales post Q1 as they closed hedges during the first quarter (avg sales at $1950/oz). This quarter the company are generating approximately $2,200/oz with production higher and costs lower which is why the shares have begun trending higher later than most in the sector.
Gold could move $200/oz in either direction and there would be little reason for it other than blind market manipulation, however most invested here believe in the fundamentals driving the price higher. Countries like China want to move away from US dominated hegemony and are open about their intentions. Currency debasement and excessively high national debts across all leading major economies compound the reasons to hold gold and now rates are set to fall there is really only one place to safely store your billions. In gold.
Back to Resolute Mining and indeed the sector at large is rising in anticipation of improved earning but have yet to report a full quarter earnings at current gold price levels nor the half year so the impact on the share price has been limited to this point, discounted by risk averse market participants. The share price has much further to run even if gold plateaus at $2,350 for the next 12 months.
Missed the boat didn't you!
The issue to bear in mind is that Capex over the next 9 months is some $50M higher to create more flexibility in ore processing. The net impact thus far on the higher gold price say to the end of May is around $16M. RSG share price is likely to do well in 2025. In the meantime I would expect a revisit at 22p-23p if gold retreats to $2100 area. The good news is that it probably won't go lower unless a production or geopolitical adverse event happens.
That makes more sense....
I mean some 320k/oz production for this year at $2400/oz you do the maths...
expecting some dividend payment soon.
Berenberg raises Resolute Mining price target to 35 (30) pence - 'buy'
Broken out ..expecting to see this over 30p pretty quick ..on your point around undervalued - couldn’t agree more - I have much higher targets
IMO the most undervalued gold miner out there.
Pedro61 me I say very childish to get back at Bushytailed in this way.
If you was sure of your investment in SRB you would have not retaliate like this. If anything you can take on Bushytailed in SRB board to show everyone over there how wrong he is about whatever he is talking about.....(sorry not reading his posts). IMO you are wasting time here...but pl feel free.
Thank you for your comments.
So you came to this board to counter busytail, seems a little immature lowering yourself to others standards. Yes I do agree with you that there is a fair amount of risk here, but that can be said of investing in all gold mining companies. They all carry more risk than traditional companies. RSG is no exception especially because of its location of its mines in a country that is very unstable. But if you can stomach the risk, gold miners have a lot going for them at the moment. And RSG has a particularly good CEO at the moment who knows his business very well. Best of luck to you with SRB, it does look good imo.
Seems to be perfect timing for RSG to become unhedged.
Can you tell that to Bushytailed,who came on the SRB board.My posts are genuine in content,his are just vitriolic nonsense.I would leave this board to Investors to make their own mind up, as no interest apart from countering Bushyknobs rubbish.Do I think this is risky?…Yes….Do I think investing in SRB is wise? Absolutely …But all can look at the fundamentals and judge for themselves
Pedro you seem a bit desperate to get people into SRB ..kind of puts me off even looking at it ..just chill ..no need to come onto other boards and deramp to get folks into a share you are in ..
It looks like investors are cashing in profits on this. If you have cashed in please look what a bargain SRB is at the moment. Support now being shown because of prospects of doubling production in near future,and massive cash holding and massive cash generation,all at at a rock bottom valuation. Big support forSRB,and long way to go up.
Please beware and be careful....profits can evaporate without caution....much better options
SRB doubling production and already doing much more than that.....This share is so risky.....I would suggest those that are willing to take the risk stop in,but those sensible investors would be much better off splitting your investment or selling and buying a much safer and more rewarding share....SRB....Looks like weakniss in this share could get much worse....and charts are suggesting it....
SRB MK of £41M and profits of £6.58M is 16%
Resolute MK £523M and profits of £182M is 34.8%
if you're doing it as a percentage of Market cap does this not make Resolute the better play?
Bushytailed came onto the SRB board ,so I have had a close look . I found this to be an extremely risky investment,unlike SRB,which has a much bigger percentage of cash compared to market cap,and cash generation to market cap,and a much safer profile. It would be wise to sell at least some of this holding and put it into SRB. The wise thing to do.This is such a risky share,in my honest opinion.
With double the average volume last week on the sell side and sat well below the 50day SRB is done for a while, had a good run the last few months, don't buy until the break out, of course everyone's opinions are honest around these boards, Resolutes chart is looking positive so I'll be sticking here for a while. GLA
SRB is a muncher better proposition all round in my honest opinion….Huge cash generation and cash in bank with a doubling of production pencilled in….Much better than this risky proposition.Get in now whilst so cheap as it is an absolute bargain
Yes indeed! Buyer interest is improving although it’s a sector wide phenomenon. Across the miners precious metal producers, particularly those operating high ounce, marginal mines are the top performing more recently and this will probably be true for the rest of the year as central banks begin to see the impact ‘high rates’ (relative to debt in the system) coupled with high taxes, has on economic activity.
Gold price on its way back up - RSG unhedged - hopefully should start to see this move up ..
Net cash increased $20m this quarter and now stands at $34m (Q4 2023: $14m), less than I was expecting to be in the kitty but can be explained away by 1) timing of gold sales and 2) impact of hedging which meant average price received was only $1,950/oz. Also worth noting the net cash position which includes a sizeable sum of gold has increased in value since quarter end.
We should benefit from increased cash build this quarter now Resolute are unhedged and receiving an additional $250-300/oz on increased production and with the delayed Q1 gold sales added to boot!
https://www.rml.com.au/wp-content/uploads/2024/04/ASX-RSG-Q1-2024-Presentation.pdf
Yep, thanks for the link to the video.
Looks ok the update today. No bad surprises and good news that they are now unhedged which should make a huge difference to sales and profits.
Entry buy at 22.46 this morning. Reminds of Shanta gold that has recently gone private and delists 8 May.
Good video thanks, i like all these guys