Ann: Quarterly Activities Report, page-19

That could be one reason why they have put the for sale sign up on Ravenswood.

I have yet to digest this report - I need to read it fully, but on the basis of this quarter's Syama sulphide production they are trending behind schedule. The June 2018 report indicated they would mine around 205k tonnes from Syama underground (including development ore), but they only achieved 167kt. That is a miss of 38kt, which is an 18.5% underperformance. I doubt they will achieve the 305kt estimated for the March quarter, perhaps they will get to 240kt tonnes if we are lucky.

Have not checked if there is an explanation, but the admin costs for Syama underground is over the top at $479/ounce - over $10m, ie running at over $40m per year. Where is this money going - is there some special payments RSG has to make to keep the locals happy. RSG is due to sign off on a new exploitation agreement with the Mali govtnut this year - I wonder what the govt will extract from RSG (that $8.5m deal for the school in QLD will look cheap by comparison).

Note that production would have been lower by 1263 ounces from the sulphide plant if they had not drawn down this gold in circuit. RSG gold recovery rate is only 71%, well below the planned 85% target, but they have a story for that miss.

Ravenswood is a disappointment this quarter - revenue did not cover operational costs. Perhaps this is going to continue for some time.

I can see the share price getting hit and retracing closer to $1.00, even if the gold price stays around current levels.

The extra $50m borrowing facility is a warning that they are burning cash too rapidly relative to operating net cash flow.

Looking forward to Esh's bullish comments. We know that Jayneen can not make sense of RSG's performance and only has eyes for the Moose, so I will just humour what she puts up here as commentary.

GLA

loki (I may do some more comments once I have listened to the conference call and fully read the report).