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looks like a $500m dollar turn over but big losses last year due to impairments ($222m) - anyone know what these are?
whats the background here? seems very cheap - yes they have large debt but paying down and with good exploration results and production seems good for a rise?
Valued stock on that news should do 100% rise from here
Toro gold has 140m shares under icm investment they could buy a bigger stake with the cash of the sale or are they sold out which would explain the downtrend
£171,000,000 market cap for 80,000 oz gold each quarter seems cheep debt being paid too
What is the story with the change in CEO ?
Has it been discussed on this board?
A lower AISC in this environment takes some doing ...
Initial performance looks better than forecast, production actually increased despite the major works at Syama
- Improved throughput at Syama sulphide plant during April following completion of works
- Quarterly production of 81,770 ounces up 2% on December quarter despite the planned shutdown of the Syama sulphide circuit
- All-In Sustaining Cost (AISC) $1,383/oz a 4% improvement over the prior quarter
- Quarterly gold sales of 88,773oz at an average realised gold price of $1,846/oz
- Cash and bullion of $103.9 million
- Net debt reduced by $54.1 million to $174.7 million
- Revolving Credit Facility (RCF) extended an additional 12 months to March 2024
- Asset sales proceeds of $43.7 million
That 45p rating looks to be right on the money to my eye.
crux on the gold comp sector
https://www.youtube.com/watch?v=k2xzTLzaxB4
Looking great ;)
Glorious rise here today leading the pack and AEX not far behind :)
Most gold producers have added 30%+ in recent weeks and today are moving higher with gold trading at $1965. Disconnect here looks even more obvious today.
Last we heard Syama gold production was "on target for the March quarter" following the completion of the Syama sulphide plant works and performance of the sulphide plant will be more consistent in future quarters. Consistency is one of issues Resolute have struggled with and no doubt discounted in the market valuation so improvements should (in time) appeal to the more risk averse.
Resolute's Chief Operating Officer, Mr Terry Holohan commented: "I would like to thank all of our employees and contractors within the Projects and Maintenance departments, as well as the support teams, who have contributed to the safe and successful completion of this significant $7.5m enhancement project. From the early stages of planning, incorporating all the innovative design improvements and challenging logistics through to final delivery, the work performed reflects a highly competent and professional team. The team have successfully met all of our operational requirements while having to deal with a number of external factors, including COVID-19, unseasonal weather and political disruption to deliver a safe and high-quality project for Resolute."
"I believe that we now have all the tools in place to significantly extend the campaign life of the Roaster going forward. The entire sulphide processing circuit has now had a long overdue refurbishment which supports delivery of Resolute's 2022 production targets, full tie-in of key improvement initiatives implemented in 2021 to provide a strong basis for further enhancements to the circuit."
Agreement to extend the repayment dates by a further 12 months will ease fears later this year. The market appears to have taken the news as a sign net debt is falling slower than previously anticipated, then again it may just be general negative sentiment in the wider markets today..
The CEO's stated aim is to reduce gearing levels "over the near term" and with gold trading at $2k/oz this shouldn't be in any doubt.
Good start 17%
This is worth £1.00
Life of Mine production update
Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) is pleased to present its consolidated Life of Mine Plan for the Syama gold mine (Syama) in Mali and the Mako gold mine (Mako) in Senegal.
Average annual production of 370koz over the next five years to 2026 at an AISC of $1,191/oz
Total LOM 12 years of gold production totalling 3.5 million ounces (Moz) at an average AISC of $1,110/oz to 2033
Average 243koz p/a at an average AISC of $993/oz over the current twelve year mine life to 2033
Syama Oxide production extended from 2023 until 2026 following 90% increase in satellite resource
Tabakoroni Sulphides to begin in 2026 with 664koz production over an eight year mine life
Mako production of 607koz at an updated average AISC of $1,071/oz over remaining six-year mine life
Resolute's CEO, Mr Stuart Gale, commented: "Our latest LOM plan reflect an improved production profile over the current 12-year mine life at Syama incorporating the successful exploration campaigns which have extended oxide production for an additional two years together with exceptional drilling results at Tabakoroni. This allows us to defer the development of the Tabakoroni Sulphide mine as we continue to assess and optimise the plan for the development of this resource.
"Syama has a significant gold endowment and there is still a great deal of exploration to be undertaken in this area. We remain very confident that the Syama operations will continue developing and extending beyond what we have published today.
"In addition, we remain focused on identifying further extension and development opportunities at Mako in Senegal, where we also expect to extend our mining activities beyond the current mine life."
Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) is closely monitoring developments in Mali following the imposition of sanctions by ECOWAS (Economic Community of West African States) on the State of Mali on January 9th 2022.
Operations at the Company's Syama Gold Mine are continuing as normal with no immediate impact to production, supply or the safety and security of employees and contractors. Resolute notes the fluid situation and will continue to monitor and provide updates as and when appropriate. Resolute has operated Syama since 2003 under the well-established mining laws of Mali.
The sanctions are in response to the Government of Mali's proposed timetable to hold elections. The sanctions pertain to restrictions on the movement of cash, people and goods, across borders, into and out of Mali from the wider ECOWAS region.
Rns soon on sales of licensing 400m plus coming to rsg
How is the RSG Management managing to drive this Company so low? What a mess.
Profit margins expand for high cost producer Resolute Mining RSG as price of gold jumps $100 in a week. I suspect the short positions here, which were climbing into last week could be suffering the squeeze.
RSG are forecasting a minimum 75,000 ounces in Q421 with good reason for further upside given the decision to defer remedial works on the processing circuit to early next year.
Link to the latest presentation - Denver Gold Forums America
https://clients3.weblink.com.au/pdf/RSG/02420950.pdf
Fewer pages listed and mostly the same as last one except page 8 now lists all the forward hedging in place, which includes new hedges for the December quarter at a higher price bringing the average up to $1740/oz. Next quarter is much better!
March 2022 Q: 55,000 ounces hedged at $1807/oz
June 2022 Q: 20,000 ounces hedged at $1730/oz
Also as confirmed by recent updates the presentation now includes the balance sheet improvements
? $59.7m in debt repayments including $50m voluntary debt repayment on Revolving Credit Facility
? $50m capacity on $150m Revolving Facility
The market is losing interest in precious metal stocks so even these recent director buys appear to have had little impact on sentiment. Pan African gold released their strongest set of results on record, balance sheet also strongest it's been for many years and yet it now trades at 15 month lows.
Director buys in detail - almost 250,000 bought on the market
Mr Adrian Reynolds bought his first 50,000 shares on the 3rd
Mr Martin Botha bought 150,000 shares on the 6th and now holds 195,455 total
Mr Mark Potts bought 44,444 shares on the 8th and now holds 123,541 total
Another early voluntary debt repayment of $30 million announced today following receipt of the first instalment of the Bibiani mine disposal. That means Resolute have paid $50 million in early debt repayments in the last three months, and will benefit from lower borrowing costs going forward. Expectations of net cash by 2023 likely brought forward.
On top of that the first scheduled loan repayment of $25m will be collected later this month, funded from cash flows.
Link to latest update can be downloaded from https://www.rml.com.au/ with the direct link below:
https://clients3.weblink.com.au/pdf/RSG/02419922.pdf
And the most recent presentation from Africa Down Under is already out of date following todays news but still worth a read. Long term outlook looks very positive with Tabakoroni underground coming online in 2024 around the time Ravenwood proceeds (up to A$250m) are available. Cash positive by then. Mako exploration will extend current 6 year mine life further out. General 10 year mine production schedule indicates falling costs in the coming years too.
https://clients3.weblink.com.au/pdf/RSG/02416484.pdf
Always nice to see and it seems to have helped the sentiment.
The coup in neighbouring Guinea does not appear to be of concern to buyers, RSG only have a small exploration presence there and the leaders of the coup have said they want the mining companies to keep running.
RSG is heavily shorted on the asx, so if they start to think that the tide is turning and close then this could tick up quite quickly.
Operational and Financial Overview
Revenue: $261m
EBITDA: $78m
Operating cash flow: $69m
Gold production: 163,118oz
Average price received: $1,723/oz
All-in sustaining costs: $1,277/oz
2021 guidance updated to reflect first half performance and expectations for the remainder of the year.
- Gold Production Forecast: 315,000 - 340,000 ounces at AISC of $1,290 - $1,365/oz
- Capital expenditure (non-sustaining) for operating assets $29m (inclusive of Mako cut back of $13m)
- Sustaining capital expenditure (included in AISC) $49m
Balance sheet upside
? $30m initial cash proceeds from sale of Bibiani to be applied to voluntary debt repayment. Remaining proceeds from sale of $60m to be received in the next 12 months.
? Ravenswood sale proceeds up to A$250m available from March 2024
Syama Gold Mine
Long life asset with significant gold resource endowment and exploration potential
Mineral Resources: 7.6Moz
Ore Reserves: 3.3Moz
LOM AISC: US$1,000/oz
Current Mine Life: 11 years
Target Site Production: 250-300koz pa
Mako Gold Mine
High margin open pit with near mine exploration optionality
Mineral Resources: 965koz
Ore Reserves: 780koz
LOM AISC: US$900/oz
Mine Life: 6 years
Target Site Production: 120-140koz pa
There does seem to be more clarity about the finances with the new(ish) CEO and other senior management changes. There also seems to be a desire to put all of the buried issues behind them with the announced impairments and tax charges, this is usually a good sign.
I think that it will still take another half year to get things really moving, it has been a wet summer making them a bit behind for July/August, they also have the roaster shutdown later this year which will reduce their ability to catch up any shortfall.
They have taken measures to overcome some of the staffing problems with operating from Australia, which have clearly been an issue with restricted movement in and out of the country. Hopefully this means that the roaster shutdown will not be more protracted than the minimum required.
The dip in quality of feed at Syama looks to be temporary and reassuringly their recoveries are gradually improving.
The power plant is now running and there is no immediate need for any capital (provided they remember to heat the roaster up slowly this time after they service it...) .
Generally they are moving in the right direction and the further they can stretch the need to go underground at Tabakoroni closer to 2024 when the monies from Ravenswood accrue to the company the better.
They have now got to a position that if they could offer some clarity over the Mali tax situation the share price could really start to rerate.