Resolute Mining Share Discussion Threads

[papillon] 20/11/2024 10:32

Interesting article. Mali gets a mention.

[oilinvestoral] 19/11/2024 13:23

May be but in the meantime , fair value is closer to 30p (possibly higher)

[the codger] 19/11/2024 11:06

The junta will be back for more in the future

[plasybryn] 18/11/2024 22:21

Shame they didn't pay that money to shareholders before the Junta got it.

[farrugia] 18/11/2024 21:53

i would be surprised if RSG doesn't try to diversify away from Mali. There is no reason for them to put more money there when they are easy prey for the junta. In one clean sweep they've extracted 160 million from them - how many years of profits does that amount to!!? And it is disappointing how RSG management rolled over; they haven't even tried to resist what amounts to ransom requests.

[oilinvestoral] 18/11/2024 21:51

All that doesn't justify the current share price! Even if you assume net production going forward is only 250,000 Oz/ annum the shares should be closer to 30p than 20p!

[oilinvestoral] 18/11/2024 21:50

PAF has over 100 million in net debt Their Barberton mine has an AISC $1777/OzThey are in South Africa which is just as bad as any other African country! Yet their EV is 50% higher than RSG! Make it make sense!

[puphead] 18/11/2024 21:14

With virtually no cash left, extra royalities, and percent of mine lost don't think there is a lot be excited about.

[oilinvestoral] 18/11/2024 20:59

PAF produces less gold (225k Oz for 2025 at roughly the same AISC and are valued at £600 million (nearly 40% higher than RSG)!

[oilinvestoral] 18/11/2024 20:03

"Surprised it is still at ?400m mka"-----I'm very surprised it's not much much higher !Let's take a look at similar London listed gold producers and see what they are trading at !HOC produces roughly the same "gold equivalent ounces" as RSG . Their market cap? £1.1 BILLION!!Centamin Egypt going through a takeover situation producer 450-500k oz / annum! At the top end RSG produces 27% less than CEY! Their takeout price £1.63 billion ! If you equate the gold production level with RSG , you get £1.19 Billion for RSG! There are many more examples ! On a simple EV/ oz of gold produced, RSG is way too cheap! Now just to be clear , I'm not expecting RSG to be valued the same as peers due to recent geopolitical risks but to be valued at a 60% discount is ludicrous!

[puphead] 18/11/2024 14:01

Surprised it is still at £400m mkap

[robizm] 18/11/2024 13:34

Of course they will have to pay tax on top. They done the same with Kodal lithium miner. Gave a few million to take their share up to 35%. I could understand if RSG where raking in huge profits but they only just started to and were getting out of debt but not all the cash and more earmarked for this. Without high gold prices we would be under 10p

[farrugia] 18/11/2024 12:04

pwhite they say it clearly in the rns

'The signing of the Protocol sets the framework for further detailed discussions with the Government regarding the long-term future of the operations in Mali, including migration of the Company's assets in Mali to the 2023 Mining Code and maintaining the safety of the Company's employees.'


the 2023 mining code means: The military junta which took over in 2020 is insisting mining companies conform to their new 2023 Mining Code requiring the government to hold up to 35% of each mining project.

MY WORRY IS WHETHER RSG WOULD HAVE TO PAY INCOME TAX ON PROFITS ON TOP OF ALL THIS !!

[pwhite73] 18/11/2024 10:50

Farrugia - "on top of giving 35% to the Malian government does RSG have to pay corporate taxes on its profits?"

Where have you got the 35% from. The RNS states the whole agreement is currently under negotiation.

[determined] 18/11/2024 10:25

Well this makes Mali a pariah country for investment now, IMO.


I am avoiding Burkina Faso as well as I put that country in the same boat of African countries to avoid.

The number of countries that look safe to invest in is shrinking rapidly now, better to stick to N. America and Australia IMHO.

[farrugia] 18/11/2024 09:04

'Those terms and conditions are still far more generous than in most countries.'

are they??


The licensing terms for Canadian gold miners can vary significantly depending on the jurisdiction (each province or territory has its own regulations), the size and scope of the mining operation, and specific agreements negotiated between mining companies and the government. However, there are general structures commonly used in the industry:

1. Royalty Rates
Ad Valorem Royalties: Provinces may impose royalties based on the gross value of the minerals extracted. Rates typically range from 1% to 5% of the revenue.
Profit-Based Royalties: Some jurisdictions use profit-based systems, where royalties are calculated as a percentage (e.g., 5% to 15%) of the mining operation's net profits after expenses.
2. Corporate Taxes
Mining companies are subject to corporate income tax at the federal and provincial levels, which can total around 25% to 30% depending on the province.


on top of giving 35% to the Malian government does RSG have to pay corporate taxes on its profits?

[robizm] 18/11/2024 08:24

Resolute mining are hardly making super profits and recently had a right issue to survive. The Mali government are tapping everyone for extra funds which they used to pay off all foreign debt. However you look at it the government has changed the rules of a contract with zero benefit to resolute mining and future investment in Mali will suffer.

[pwhite73] 18/11/2024 08:10

RSG were probably handing brown envelopes to the previous administration allowing them to avoid paying taxes. The military coop took place because of the level of corruption that was going on. $160m in back taxes is nothing to Resolute when you consider the size and profitability of their operations in Mali.

[farrugia] 18/11/2024 08:04

how did they work out the $160 million exactly!??? and why do RSG have to pay it?? If that's not extortion I don't know what is.

[pwhite73] 18/11/2024 07:59

Those terms and conditions are still far more generous than in most countries.

[imnotspartacus] 18/11/2024 07:31

The word is extortion