"But you will still stay away and blame DCN: "DCN has a lot to answer for beyond its own failing fortunes, causing me to throw in the towel for one.". For some reason you believe if DCN f*ed up then RSG will too..."
That is not exactly the rational, it is a little more complicated in my case. My loss on DCN forced me to book previous losses in my portfolio that I had been carrying so that I could hold my position in DCN and keep my overall portfolio in the green. This is one of my personal portfolio management policies not to sit on "over all" unrealised loses. I can sit on an unrealised losses for years and time their sales to minimise tax but I won't carry an overall lose in my portfolio at any one point in time. If you do that the loss can potential compound and the only way to recover such a lose is to stay in the market. When markets are this overvalued that is not a position you want to be in. My sale of RSG was also part of a deleveraging strategy as part of my portfolio had been funded on a credit line secured by property. By using credit secured by property you can rehypothicate the value of that credit as long as your portfolio remains in the green, ie you can get the long term benefit of owning the property (bricks and mortar) and at the same time you can have that money working for you on the stock market. When property prices are in decline or relatively static this is a good strategy IMO as there is opportunity cost in holding property in a sideways property market. The important thing with a strategy like this is to make sure your equity portfolio always remains green at anyone time or else your strategy will fail horribly. As a result of the recent rebalance of my cash, property and equity portfolio I've got my equity portfolio back in the green, my property is now debt free and my cash holdings are minimised but my large credit line remains fully undrawn waiting for opportunity to return back into the equity market. Unfortunately my investment in RSG has become collateral damage of my portfolio risk mitigation strategy.
Also although I think yesterday's announcement has de-risked RSG I don't think it is fully de-risked yet without seeing grade and recovery hitting feasibility levels in the sulphide circuit and the mine actually hitting steady state ore production rates. Commercial production DOES NOT mean feasibility targets have been achieved.
if RSG hit annual guidance as they are foreshadowing their June quarter AISC will be about US$1,092/oz (A$1,558oz) based on the weighted average of previously announced quarterly AISCs and the production target of 300,000oz for FY2019.
Seeing as they have only declared commercial production on Syama UG yesterday many of the mine costs will also not be incorporated into the June AISC numbers so the may not give a proper and complete picture of the cash flow (cash draw) in the June quarter
On another point and I not wanting to dwell to much on DCN (and not saying it will go down the same way) but DCN declared commercial production in early January at Mt Morgans, in mid-February they disclosed to the market that their UG was operating at feasibility levels and by towards the end of March they disclosed that they were misrepresenting things in February and they were having troubles with their UG mine and would miss guidance. They then followed up these misrepresentations with a guidance figure for the June quarter which in hindsight was ridiculously overstated and reckless in my opinion.
I am not a bunny and if this is the standard the industry is setting for itself they don't deserve my money or anyone else's, I am not that desperate for cash or investment opportunities. It is almost comical how desperate retail investors get to make a buck on the markets and how they lose sight of the how small the upside is, on average, in these mining stocks considering the risks, lies, misrepresentations and shine the directors and promotors put on their stories. And don't get me started on the US banksters and the US bubble equity markets because we all know where that leads. Yes another couple of pages of classic Eshmun waffle. Waffle that will soon prove to turn into foresight IMO. Esh
(20min delay)