Yes, the Gold price is happening in favour of RSG as well as all other producers. This is by far the biggest and the most important factor to make or break a company. We all gold stock investors hope and pray for higher & higher gold price. No need to mention that Gold is in an upward trajectory.(That is a whole world of topic on its own)
I have been a critic of RSG for quite some time, especially when the share price was north of $1.80 and most people on this thread were happily singing. Surprisingly when the share price is at or near the lows then most people are whinging and cursing management.
RSG has invested (in other terms burned) a hell lot of money in its business. If those investment starts reaping then happy days, if not...trouble.
I am risking my money with improved cost & production profile from here on. It appears a lot of heavy lifting has been done. The stock is heavily shorted(above 8.5%) and all the under performance so far has been correctly priced in. Therefore, when the business starts performing as it should then those short position needs to be unwound. Added with accelerating gold price a rapid share price recovery is on cards. ( My best guess is in within 3-4 months time). Right now I don't think there is a need of capital raise.
With this production guidance announcement today's trading is crucial and the next few days. The day is very young , so let's see where it closes. If the shorts can't push it lower today then we might have seen the low's.
I'm building a position in RSG. There are times to BUY and there are times to SELL.
For me it's a time to BUY BUY BUY.
(20min delay)