Hi J9 Sounds like you’re a relatively new follower to the RSG...

Hi J9
Sounds like you’re a relatively new follower to the RSG story.

Not into politics at all, so not a supporter of any past or present leader. At the end of the day it is the senior and middle management who do all the work and make the managing director either look good or a mug! My focus is on outcomes and facts and this has served me well with my investments over the years. As a long time follower of this group (see my prior posts) though I think you’re off the mark with regards to their recent results.

Yes, in FY16 they beat guidance ($1200 vs predicted $1280/oz), but FY15 under Sullivan it was $1094/oz vs predicted $1280/oz ; so can’t really point to that being a positive. On top of that, consumable and services costs fell globally in FY16, so would have hoped for a better overall result. With all the major capital expenditure completed in FY15 and a A$300/oz increase in the POG from Jan-Sept they made big improvements to the balance sheet, but then again you or I could achieved that result.

Have been an investor of RSG for near on a decade and done very well picking my points of entry and exit. With what appeared to be all the good news in the market towards the end of September and a little concerned that the advertised transition was possibly not going as well as the rhetoric suggested, saw an opportunity to average out of 80% of my holding around $1.90/sh. I’m now just starting to buy back in at these levels, but more so based on the assets rather than the new management at this point. IMHO jury still out here ie. Until we see meaningful cost reductions, buying of new growth impacting assets or at the very least building on the assets delivered by earlier management.