why i have this stock, page-8

I have taken up a BIG chunk of RSG in the sell off this morning.

In one line: RSG is simply put a 3 bagger in 12 months, and if you want producer exposure to Gold you MUST have Resolute in your portfolio.

In a bit more detail, this is the prototypical model of a company that i like to INVEST in as it is in the process of making a 180 degree turn around and this is the perfect time to get a position.

Here are some of the major factors behind my decision/.

- Australia's second largest gold producer and GROWING, close to 400,000 ounces per annum by next year. To put this into perspective, Newcrest Mining (another darling of mine) is ~2 million ounces, but has a market cap of over 31 billion dollars, whereas undiluted RSG is sitting around the 750million mark.

- Month on month record production at the flagship project Syama which is well on track to 250,000 oz per annum. I believe August production alone was 14,855 ounces for a currently projected yearly production of 180,000 ounces.

- Decreasing prices month on month, even blind Freddie knows that Syama will not cost $1000US per ounce for long.
Sullivan has clearly stated that costs will continue to decline to $480/oz, and he is a no frills character so there is no reason not to believe that the coming cost savings at Syama will not materialise.

- Hedge books closed out. This in my mind is an absolutely massive point and fully exposes us to the excellent gold price that I can see easily holding a level >US$1200/oz for the next 4 years. To quote

"Resolute has received approval from its hedge book counterparties, Barclays Capital and Investec, to neutralise, through forward gold purchases, the portion of the hedge book not closed out with the proceeds from the equity raising. As a result, Resolute will become effectively unhedged and fully exposed to gold price
movements."

- huge reserves 2.5 million ounces and resources pushing 10 million ounces, the company has a stable and secure pipeline of projects.

As always DYOR and DD, but I think this stock is going vertical with continuing strong positive drivers for at least the next twelve months.

Cheers
-Cali