Ann: Quarterly Activities Report, page-74

Honestly!!!

Beginning to smell, doom and gloom, burning cash.

RSG will come out of this with far less debt (most probably no debt) than AQG who are building their sulphide project using cash flow from oxide mining and big pile of debt (US$350m .....US$250m drawn) and I don't see you spreading the doom and gloom story on that company's threads.

"Actually looks bad now.
Burning through $50 million a quarter.
Net cash now just over $100 million.
With another bad quarter coming.
Really is cutting fine to start making money again."

From the quarterly​

• Cash, bullion and listed investments of A$153 million / US$121 million as at 31 March 2018
• • Gold in circuit inventory as at 31 March 2018 of 92,169 ounces worth A$160 million / US$120 million

The debt RSG owe is not real senior secured debt a la AQG debt variety, with attached interest and loan repayment schedules. From memory it's just debt owed to its wholly owed Malian subsidiary. I can't see any reason to get concerned. The lower sulphide recovery was from lower grade stock piled ore and there has now been ~60kt of 3g/t ore mined that should start displacing the stockpiled sulphide ore this quarter. How that amounts to "with another bad quarter coming" I don't know.

And while we are doing comparisons with AQG, I can't see how it can be efficient to be taking on debt and at the same time stock piling sulphide ore on the ROM pad in uch great quantities and for so long. It's like borrowing money to get the wood and bricks delivered to your building site two years in advance of the pad being poured. Never understood why they did that? RSG is efficiently using its asset base as far as I can see and is on track to deliver a world class gold project. The delays with the EIS in Ghana are probably only helping to de-risk the cash flow drain IMO. Esh