rsg - one of two most undervalued goldie, page-16

Does anyone know what Syama's cash cost is supposed to be? If they produced 7,000 oz from Syama in July, despite various stoppages for repairs etc, one might guess that they should do, say, 10,000 in August as they ramp-up. If cash costs were, say US$500, then ebit from Syama would be about A$5m+. These are just guesses, but are the kind of numbers we should be expecting. In other words, cash flow ought to be turning positive. If production really is ramping up, as the company has been suggesting, then it would be able to secure a small bridging loan to cover the next three months to get it over the production hump, rather than raising equity. If it decides to raise equity, I would be asking why they were unable to raise a loan....

Syama has proven difficult for others that have tried to crack it, so the next update will be very interesting reading. RSG are not that hot on marketing the stock (which in some ways is a good thing). If things are more or less on track, it may just be that they are not making a big noise about it. Fundamentally, the stock should be worth comfortably over A$1 on a peer group comparison once Syama is in full production. The market may want a three production track record before it values it as such. I guess we will just have to wait and see. I am guessing we will have to wait until about a week in September before we get an August update.