The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
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
If strong production continues without any more high spending on upgrades to mining setup this can turn profitable by q1 2023 and may in turn pay dividend again very unique that they will continue to offer physical gold
In their last report UTL, which also have a significant holding in rsg, seemed to think that the new management have managed to turn the corner. Let's hope so...
A company in the last 3months has accumulated 28million shares valued at about 7.8 million
A good, detailed review of the business-
https://sprott.com/media/5766/221003-scp-rsg-initiation.pdf
I see that they are getting removed from the asx300 (19th sept) on mcap grounds, missed that one coming... Coupled to the falling pog it is bound to further increase the downward pressure on the sp.
Looking at GEAR's accounts there does not seem to have been any production at Ravenswood. They have had a fund raise and are looking to expand the production capacity at the site (this year?). Hard to see that they can meet the 500koz by 2024 with a target of 200koz p.a. There is however a rather ambiguous fudge in the Ravenswood sale rns about this -
'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.'
The last sentence indicates that the production target is also dependent upon a 'production plan' as the exact details of this have never been specified (at least in an rns) it is hard to know how to interpret this.
I have requested the information from both RSG and GEAR but neither have responded. Given that RSG even referred to the A$200 in the presentation in todays rns you would think that they would be a bit clearer as to what the situation is with regards this potential payment(s). I thought that they were now being more open about their finances now but perhaps not....
At some point they will need $100m to go underground at Tabakoroni, I was hoping that some of that would come from the Ravenswood payments but I am not sure that these will happen.
Nice MRE news.
I've dipped my toe back in. The last quarter looked OK and the conference call was very positive about the next. With each management change and better cash flow they seem to be clearing out previous financial 'fudges' which will encourage larger investors (as seen with the recent increased holding by Baker Steel).
They seem to have got the sulphide recovers on track and they are now looking at a higher throughput (to go with an expected announcement of expanded resources?).
I am still trying to find out whether Ravenswood Gold are actually producing gold any yet, anyone know? They need 500k oz before March 2024 if RSG are to get their A$50M, the other criteria (gold price) looks to have been met.
With a proposed annual production of 200koz there is not so much time left.
Indeed.
This share price should be North 50p gold prices are going to hit 2k soon
Keep going :)
I expect it to go well along with most other goldies as gold continues to strengthen.
I mean Centamin produces a similar number of ounces a year (415,000 last year) and is 5x the price currently. The bang for your buck here is unbelievable. Albeit it doesn't have a great track record. But in a much higher gold environment I don't think that matters.
Yup - a somewhat similar story to their HUM neighbours if HUM ever get their **** together.
September looks important to me re the gold price - I virtually expect $2.4k within a year - maybe even this year - which will more than offset miner's rising costs going forward.
Resolute is a high cost producer, but it produces a lot of gold (400,000 oz+ pa), has a lot of gold in the ground, and is very cheap. If the gold price roofs it due to stagflation / bad debts / currency destruction etc, this is a fortune maker.
Testing a breakout here to my eye.
Not bad.
Looking perky again.