RE: DRC payment28 Feb 2024 16:11
No Doggie, the trolls do this all the time: it looks like you are now one of them.
RRR has multiple strands and multiple assets. It happened to come out with an important update yesterday about the start of alluvial gold production on one licence in Bilbale.
From a tweet by RRR yesterday, "The equipment brought in for our alluvial gold test programme at Bilbale will be able to handle from 288 tph to 1,152 tph"
https://x.com/RRR_RedRock/status/1762426092051116099?s=20
Work the numbers through: 1,152 tph x 2 g/t is 2,304 g. 2,304/28.3495 is 81 oz an hour. 16 hour day (x2 shifts) is 1,296 oz per day. Sell for $2,000 per oz, cost of production $900 an oz: revenue is $1.452mil per day. That is the likely upper bound given current conditions.
I will let you do the lower bound calculations.
Whichever way you cut it, Burkina Faso is worth significantly more to RRR than DRC.
Does the fact that BF is brought into production mean that the DRC cash is not happening? No, RRR has a JV partner willing to supply the kit and operate the asset in exchange for a revenue share. Whether the DRC cash comes in or not, RRR should be monetising the alluvial gold at Bilbale.
So the trolls have been whinging; too many assets, no cash, no JVs, no monetisation etc. So RRR has procured a JV on a very decent asset and suddenly it becomes a problem. Madness. RRR has said it will seek to establish early cashflow and it has. It also has alluvial gold in a granted licence in Cote d'Ivoire and it has said it is travelling to CDI: will it seek to JV the alluvial gold in CDI next? RRR has already said it has been approached by multiple companies about CDI.
DYOR
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