Randgold Resources Share Discussion Threads

[careful] 20/9/2015 18:35

Interesting developments in fiat currencies, (paper money with no asset backing).
Maybe the Chinese and the Russians will eventually go back to a gold standard.

[shavian] 16/9/2015 22:04

Great news of jv with Anglo to rejuvenate Obuasi in Ashanti's gold belt.

[gucci] 16/9/2015 16:08

Racing upwards

[tongosti] 16/9/2015 15:27

Splendid balance sheet this company has. Leveraged play on the price of gold makes it totally dependent on it. Hence the difficulty of making projections. Having said that, I will consider opening up a position if it goes below £31 and hopefully drip feed if it goes way below that. GLA

[essentialinvestor] 15/9/2015 20:02

Appreciate the view.

[hpcg] 15/9/2015 14:07

EI - free cash flow last quarter was about 2 per share. This quarter it will be less than 2 per share. So the question is how much would you pay for that cash? If gold is going up then 15x? If gold is going down 10x? The market has been paying 19-20x. The simple matter is without knowing the forward curve for gold, which no one does, it is very difficult to pick value using fundamental metrics.

I am working from the following strategy which both are in longer term down trends. (Though not enacted whilst waiting on Fed)

gold down, RRS down sell
1 up 1 down neutral

Should both turn positive on long term averages I would reverse that. This is definitely one to watch for a reversal, but taking action ahead of the chart is very risky IMO.

[essentialinvestor] 15/9/2015 12:41

Sub 20!, that's a big call hp.

I have RIO on my watch list, but think it's 2016 where the big bargains may
be available in the sector, just guessing on my part.

[hpcg] 15/9/2015 12:32

abc - I would strongly agree with you, I would certainly think sub 20 is on the cards. I am not short at the moment - waiting for the Fed.

[essentialinvestor] 15/9/2015 10:11

Yes fair comment abc and the gold price dominates as you rightly point out.

[abc125] 15/9/2015 09:03

The chart suggests lower highs and lower lows are on the cards. FRES is also hitting new lows. Small/medium cap miners have already been decimated. Its now the turn of the large caps where there is still ample liquidity.I wouldn't be surprised to see the share price 50% lower in several months.

[hpcg] 15/9/2015 08:50

EI - That is a difficult question because the future track of gold makes such a difference to a DCF model. I reckon a free cash multiple of 15, so perhaps 30 quid? Trouble is the operating margin is in continuous decline and next Q results will be worse than last Q. Realistically one cannot go long here until gold bottoms, and the share price will still have to catch up as it lags. I don't think I could put a number on it to be honest.

[essentialinvestor] 15/9/2015 08:39

hp, any view on the level you might see some value here?, TIA.

[hpcg] 12/9/2015 13:22

Shavian - GS $20 oil is not a prediction but their most extreme scenario should storage be filled and production not drop. More realistic US onshore and non-opec marginal offshore start to decline.

RRS still expensive with POG at this level even if it is best in class.

[lovegod2] 12/9/2015 11:45

short term bounce coming next week

[shavian] 12/9/2015 08:34

Hpcg - lol! Goldmans are talking about $20 oil. Would be good for mining costs and enable efficient miners like RRS to make profits at lower POG

[hpcg] 10/9/2015 09:21

If gold breaks below 1100 it won't be the quad bottom longs will worry about, but their own.

[shavian] 09/9/2015 22:09

Quad bottom

[hpcg] 06/9/2015 12:01

If I was more confident gold was not going to go up then this would be a very easy short. Small spike up on the jobs report but then more than gave that back. Despite the consensus miss the fact that there was signs of wage inflation means the Fed ought to do something, and I guess that is what the markets saw.

Long term weekly support points at 3600 and 3638. We know the upcoming quarter is going to be awful from a Q on Q and Y on Y basis as previous Q gold was above 1200.

[robertfaulkner] 05/9/2015 18:48

Missed out Thur but Fri closed at 3722 so I should get my shares on Mon if Gold drops a bit more and Ftse is flat or dropping

[robertfaulkner] 02/9/2015 20:17

I'd like to buy in at 3715 about 100 below today's low

If we get another drop in gold I might be blessed, may be in a month I'll regret it

[shar65] 26/8/2015 13:29

For those interested in mining companies check this Interview with Charles Gibson: Head of Mining at Edison Research

[linton5] 26/8/2015 11:48

This is a bargain and I've no cash aaaaaaaaaagh

[holidayhome] 26/8/2015 11:15

Does anyone know the date when Yellen makes her next statement about interest levels?