Resolute Mining Share Discussion Threads

[arja] 31/3/2021 16:10

quite good news announcement today I think and it turned around in OZ and UK punters expect an uptick in OZ on thursday it seems . Gold price up over $20 since 6am today when OZ market closed . I might even try a day trade in RSG tonight if I can stay awake until midnight !!

[dogwalker] 30/3/2021 19:29

Actually, I'm now thinking there's an opportunity here - to buy! Not sure just how significant the current issue is , other than that the local government has agreed to become embroiled , & therefore implicated. Were the Chinese really ever going to pay $100 million for the mine?
The company is fully able to pay down its debt without that sale money. Its prospects elsewhere are excellent. Any compensation from Ghana for the expropriation that's happening/happened will be a bonus.

[arja] 30/3/2021 19:13

yes, i agree and it was odd that not suspended in UK . I tried to short it with a CFD but IG markets would not allow RSG to shorted . with gold down another $25 since aussie market closed , I might try a short tonight if I am not too tired at midnight !

[dogwalker] 30/3/2021 15:03

The circumstances when I thought there was a reasonable level of trading here was when the OZ market in these shares was suspended.
Yes , we'll all do our own 'research' with regard to the company & what's happened to its mine in Ghana & there's been plenty of opportunity to sell, at least where the shares have not been suspended.

[arja] 30/3/2021 13:41

trading levels are irrelevant in this dual listed stock as OZ is main market and where most of volume is. Down again in OZ on tuesday and weaker gold prioe not helping . Chart suggests it has much further to fall unless a good news announcement changes the bearish mood . Sarkcosy is right and best to grit one's teeth and exit as preservation of capital is paramount . Sorry to say this and DYOR of course

[dogwalker] 26/3/2021 14:14

Reasonable level of trading today considering the circumstances. Including one or two decent-sized purchases - bravo.

[sarkcosy] 25/3/2021 18:49

Sorry dogwalker if I had known I would have done but as I don't hold any stock in this I don't keep a close eye. But what I am saying is that I don't imagine this will end well and better to take what money is left and put it to work asap in something with less political risk. Trouble is at the moment mining stocks are not doing well which is somewhat counter-intuitive given the massive money printing going on all over. My guess is that things will start to perk up after Easter so maybe this is a good moment to pick up cheap stock and put your money back to work. Good luck anyway...i will watch this space.

[dogwalker] 25/3/2021 17:35

Shame you didn't post your insightful advice 2 days ago , isn't it, really?
As it is ....

[sarkcosy] 25/3/2021 17:02

I am staying....key is to be working with the right local people then these bad things generally won't happen.

[dogwalker] 25/3/2021 16:12

When are you leaving Ghana yourself then Sarkcosy?

[sarkcosy] 25/3/2021 14:24

Lads
I work in the mining space in Ghana. If I were you I would take your losses like men asap and put the money to work making money somewhere else....don"t hang about hoping something will turn up because it probably won't in my view and if it does it may well be even worse than it is now. I have no shares and no interest in this stock but I do have some insight.

[sarkcosy] 25/3/2021 14:23

Lads
I work in the mining space in Ghana. If I were you I would take your losses like men asap and put the money to work making money somewhere else....don"t hang about hoping something will turn up because it probably won't in my view and if it does it may well be even worse than it is now. I have no shares and no interest in this stock but I do have some insight.

[arja] 25/3/2021 07:39

it did and hammered in oz to close at 46.5 ( 25.8p )

[arja] 24/3/2021 19:23

when did bad news come out as the share price did not tumble in OZ ? must have been after 5am UK time I guess .

[kooba] 24/3/2021 10:57

Looks like the Chinese have found a cheaper way of securing the asset..this is why buying mining stocks in countries where corruption is rife is problematic.

[theprovosts] 24/3/2021 09:32

So, on 15th Dec 2020, RSG indicate they are going to sell the mine for $100m. Share price goes up 0.02%. On 24th March, they say they no longer own the mine, share price goes down 25%, gotta love Mr Market sometimes.

[74tom] 24/3/2021 09:15

Yup, they need the $105m to repay debt...

[theprovosts] 24/3/2021 08:58

Im assuming Mr Market is worried about liquidity (previously indicated they were selling the concession) since the mine is not actually in operation just now?

[74tom] 24/3/2021 07:25

“hard to imagine further bad news“

Well it didn’t take long for your naive comments to be proven wrong...

[ohisay] 02/3/2021 15:14

Er.. they did get rid of the CEO

[vacendak] 19/2/2021 17:05

From the HY report of UIL Ltd, which holds a good chunk of Resolute:

"Resolute Mining Limited’s (“ResoluteR21;) gold
production in the six months to 31 December
2020 was 177,191oz, down 15.0% on the same
period in the prior year. This was due primarily to
interruptions in production at Syama in Mali, and
the sale of the Ravenswood mine in early 2020.
Sulphide production in Syama was impacted
by industrial action, while oxide operations
were lower than the previous year following the
completion of open pit mining at Tabakoroni in the
first half of 2020.
For the year to 31 December 2021, Resolute has
forecast production of 350,000oz to 375,000oz
at an all-in sustaining cost of between USD 1,200/
oz and USD 1,275/oz. In USD terms, gold rose
significantly in the first half of calendar year 2020,
then remained relatively flat during the period
under review. As at 31 December 2020, cash and
bullion on hand was USD 106.0m. In December,
Resolute announced the sale of the Bibiani gold
mine in Ghana for USD 105.0m"

[mrwaterloo] 17/2/2021 11:10

Aside the debt level, the company sold their Australian mine and now solely africa focused unit which probably increases the perceived risk. There was a coup in Mali which did not help confidence and some operational challenges and strikes at key mines alongside COVID risks as well as unexpected Capex and local VAT tax issues with government. During period of high gold prices a lot of the gold price was hedged because of the debt and therefore the group did not fully benefit from the upside. Some subsequent changes in management and broad selling by shareholders leading to the current poor valuation.

Hopefully the bad news is now behind us and Fully baked into share price. hard to imagine further bad news. Without further surprises the company should start delivering and we can see some upside to the current share price.

[ohisay] 17/2/2021 08:54

Guidance for 2021 of 350,000oz to 375,000oz at a forecast AISC between US$1,200/oz and US$1,275/oz...

Don't forget too 133,000 ozs already hedged for 2021 @ 1687 dollars/oz ..around 37% of output.

[avsome1968] 17/2/2021 08:31

Richard i think the dept was becoming a problem $230m need to be eating into this while gold price high so the sale of Bibiani Gold Mine for US$105 million will hopefully pay near half of the dept to $125m so with Guidance for 2021 of 350,000oz to 375,000oz at a forecast AISC 20% up between US$1,200/oz and US$1,275/oz so it all depends on the gold price i think we will see gold price over
2k again short term RSG share price should start to move back up i actually added yesterday to bring my average down to 46p now but i think will still have a seller in the background.




Y20 production to 395,136oz (CY19 production of 384,731oz)

-- Realised gold price for the quarter averaged US$1,719/oz compared to the average spot price of US$1,877/oz

-- All-In Sustaining Cost (AISC) of US$1,002/oz for the quarter bringing year to date AISC to US$1,074/oz (CY19 AISC of US$1,095/oz)

-- Cash and bullion of US$106.5 million reducing net debt to US$230.4 million at 31 December 2020

-- Agreement reached for sale of Bibiani Gold Mine for US$105 million
-- Guidance for 2021 of 350,000oz to 375,000oz at a forecast AISC between US$1,200/oz and US$1,275/oz

-- Tabakoroni Mineral Resource increased to 1.3Moz at 4.9g/t Au
Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) presents its Quarterly Activities Report for the period ended 31 December 2020.

Resolute's safety performance continued to improve with TRIFR halved to 0.87 over the preceding 12 months, despite the challenges posed by the COVID-19 pandemic.

Resolute's quarterly production of 89,888oz at an AISC of US$1,002/oz during the December quarter was driven by another strong performance from the Mako Gold Mine (Mako) in Senegal and an improved performance from the Syama Sulphide operation.

Production at the Syama Sulphide operation increased by 15% compared to the prior quarter despite a number of local and national strikes called during the December quarter. Processing operations were not significantly affected, as Resolute capitalised on the ore stockpiles at both the oxide and sulphide plants to ensure continuity of production. Syama Oxide production was affected by the late arrival of mining equipment to the Cashew Open pit which delayed access to higher grade ore, together with material handling issues associated with viscous, low density ores.

During the quarter, Resolute announced the Sale of Bibiani Gold Mine for US$105 million in cash to Chifeng Jilong Gold Mining Co. Ltd (Chifeng). Proceeds from the sale will be used to repay debt and strengthen Resolute's balance sheet.

Guidance for 2021 has been set at gold poured of between 350,000oz to 375,000oz at an AISC of between US$1,200/oz and US$1,275/oz inclusive of corporate overheads. The focus for 2021 will be operational consistency and cash generation