Member Info for Monkshood

After merger his will have a potential MCap around 700M which moves into a possible future FTSE250 contender position. With a reasonable dividend it would also make the Divi Index. If management can get this to work then it could be reasonable mid term investment.

The move up must be fairly well priced in by now, but it will be interesting to see what happens over the next couple of days.
I sold some of mine today, I am undecided whether to hold this longer term.

Seems to be popular.
It could be an interesting couple of days ahead. RSG is shorted (about 8%) on the asx if this is considered positive then it may cause a bit of a short squeeze which would push the price back up. Not sure if the shorts are over debt worries or because it is near the bottom of the GDX index (so elimination would be like going out FTSE I guess). Either way, the sale, if it happens, and is liked may solve both issues.

It is only $67M (US) upfront with circa 130 M contingent on POG etc, however the AISC was high for Ravenswood and they do not have the capex to do the next proposed phase (although I thought that they had raised money with a placing for developing the site a couple or more years ago?).
I guess the production update released today will need revising if this goes ahead
-Ravenswood forecast of 80koz at US$1,200/oz
This will take off about $24M profit this year (with av POG of $1500) -although that assumes that they hit $1200 ASIC......

Clearly not just idle rumour ! The debt reduction will be welcome in my opinion although it then becomes 'just' an African producer. Will be interesting to see how the asx market reacts to this tonight.

Whist I knew that there was a review of Bibiani rns 13th Dec (possible sale?) , there is also talk that Ravenswood may be close to being sold. Interesting balance, going forward, between reducing debt and being able to maintain future production levels with diversified production sites.
https://www.afr.com/street-talk/resolute-mining-closes-in-on-gold-mine-sale-20200113-p53r49

As expected increased 25% to 500K oz. Again reaffirmed that refinancing debt - no new equity.
The question is can they deliver what they say, in particular at their predicted AISC ($980), something they seem to have struggled with in the past? Even in the past quarter after the breakdown had occurred their predicted AISC vers actual was $70/oz out. They have been (just), bailed out by high POG and cherry picking the best ore at Mako (note the cost increase in AISC there next year), if Syama delivers and there are no further problems it should start to rerate, although it will take a several quarters of reliable production at their predicted ASIC for confidence to be restored.

Is a bargain now - clearly was not at 150!

Let's hope so, however debt increased again.
Without the cost of the breakdown and subsequent lost production this may have just been avoided.
With production now ramped up and high gold prices hopefully debt will be reduced from now on.
There was a lack of detail in the announced results - await more clarity with future rns's on 13/17th

I thought that it was cheap at 160, then 150 and now got some at sub 140! I guess we will find out when the results come out in a couple of days.

Steep fall on the asx last night so expect the same here today. It has been interesting following the asx bb's where it has been traded for many years and trade is more liquid. One of the reasons for rsg being less popular than some miners is that it has gone from being cash rich a few years ago, to in debt with the amount of money ploughed into Syama. With the breakdown in the roaster this quarters figures will not look great but , arguably , have been priced in. Provided they have no more problems they should be producing plenty of gold at the moment to take advantage of the high gold price (plus they have hedged some at prices that everyone would have been very happy with a year ago) . A good run through to the second quater should restore confidence so the price rises to of nearer that its peers.

The forward selling @1550 came after the asx closed (unusual for them to release it in the UK first ) also the news flow re the US strike at Bagdad gathered momentum as the day went on. Will be interesting to see if the asx catches up on Monday.
A bit about Ravenswood-
Https://www.miningmagazine.com/operational-excellence/news/1378353/resolute-realises-ravenswood-plant-expansion

It only has an ordinary listing (rather than premium) so that excludes it for some (although they anticipate moving to a premium listing at some point >year? in the future). It is dual listed and trades with a 7-10m daily volume on asx so is more closely followed there.

Another 4.7% increase, with a decent volume , on the asx today. Looking to be a good end to the year :o)

There has been a steady stream of RNS's over the past coupe of weeks . This one seems to have given the price some upward traction with a >6% uptick on the asx where it is traded with much larger volumes than on the LSE. Hopefully this will set the tone for a nice steady rise through next year.

Power cost to Resolute confirmed in Power Supply Agreement to be US$0.15/kWh based on current fuel prices
· Stage 1 30MW thermal power plant and 10MW battery to be completed and fully operational by the end of 2020
· Stage 2 20MW solar power system and additional 10MW thermal plant to be operational by 2023

Re -cash. They had clearly, originally, planned on having approx 400 installs by the end of the year. This means that they are down about £300K per week from what they would have been expecting, with only 2 months delay that is as much as they raised in the placing last year. Even if the headsets located in prime sites have had a higher revenue than expected I would be surprised if the UK arcade ones have done so well this (very wet) Autumn (certainly online bookings indicate this). The ones that have not been yet been installed would/will have been those in high revenue locations. I am just surprised that they have not changed their guidance over the break even timing, I would have been less concerned if they had said that it was going to be a couple of months later but then provided more detail to their overall financial position.

I sold out most of my holding this morning. I think that it has a lot of potential but the install rate is way behind what they were indicating last July -
Currently the Group has a total installed base of 237 headsets;
· 34 new headset installs agreed across Madame Tussauds, Washington DC; two Legoland Discovery Centres; and two Al Hokair sites in the Middle East;
· A further 118 headsets installs agreed subject to contract, expected to be installed through the remainder of 2019;
But it still stands at 302
I will add more next year when it is clear that they will not be running out of cash.

With the increase in MCap from the placing (which @88 was only just over 2% discount), HYVE has moved to the top of the reserve list for the 250 which should drive the price up further.

I have been impressed with the management of RSG, they respond promptly (at the highest levels) if asked questions and seem to be able to deliver on what they say. If the can get the AISC to the levels they predict then this looks like being a very promising investment over the next few years.