Seriously. The only reason people are jumping up and down for joy at the moment is because the gold price is rising and all gold companies look good in a rising tide. Ounces in the ground are sunk capital and can sit worthless for a very long time when gold prices are low as was proven in the recent bear market for gold. How quickly people forget. Now everybody is an expert and every gold company and prospect is a winner. Throw a dart at the board and you're likely going to make money but I'll still be sticking with some basic principles that have served me well through thick and thin.
For me developing and operating mines in Mali comes with significant risk and that's why I wouldn't invest any serious money in RSG. I don't mind taking a punt in Africa if I can get in early but I can't justify the risk when I've got real money on the line.
Maybe you should try Googling Mali. In 2013 the northern half of the country was completely overrun by Islamic extremists that had to be beaten back by French military forces and as early as November last year the Radisson hotel in the Mali Capital was attacked by Islamic extremists with 20 people killed. A decent terrorist campaign by these groups could shut down the best laid plans of any mining company, quick smart, and we know the world is not producing less terrorists. In fact the opposite seems true now that the middle east has become their play ground.
And you talk about risks.
Also, I've got holdings in KDR as you know, but I recognise that it remains full of holes until they can get Burbanks to work and you have your money invested there over RMS. I can't see any sense this "risk" relativity equation. KDR is far far more risky than RMS in my honest opinion so warrants far less weighing in my portfolio.
Eshmun
RMS Price at posting:
44.5¢ Sentiment: Hold Disclosure: Held
(20min delay)