Who likes Porkies, page-43

Morning Guys,

I have stayed out of the gold sector for some time as the sector has certainly been terrible of late and has not shown a sustained trend change. It will come, but potentially not yet.

I have been following RSG, however, along with some others in the sector, and at the current prices it represents a compelling investment despite the current sector malaise.

In terms of valuation, it is very interesting to directly compare RSG with BTO as both have their flagship asset in West Africa, both have very similar R&R and both have/ will have comparable global AISC.

BTO is further along in its development story and has multiple mines in production (5), however, you could argue that some of their jurisdictions are less attractive.

BTO will produce c. ~2x the gold output that RSG will (at 500k oz) but when you look at the comparable EV's there is a material disconnect.

As RSG grows the Syama project in terms of R&R and brings the UG sulphide operation up to steady state and progressively lowers AISC (via full automation and solar energy farm) and then looks to scale up production beyond 2.4mtpa as per mines and money interview, if the valuation does not appreciate massively, then RSG is a no brainer TO target regardless of sector sentiment, but more so when the eventual bull market returns.

Adding tranches consistently here will be well rewarded down the track IMO.

Cheers
john