Strengthening the balance sheet whilst bringing new investors on...

Strengthening the balance sheet whilst bringing new investors on board might not be a bad thing for this company.

The reality at this stage however is that they said they were going to list the company in the LSE in the first half of 2019 and that it wouldn't involve a capital raising and that is exactly what has happened.

If they also meet their full year guidance they are at least starting to deliver on some of their promises which is more than can be said for many a company in this game.

I can't see them delivering on guidance without reasonable progress at Syama UG as they have already foreshadowed that Tabakoroni won't deliver as much in the June quarter as it did in the March quarter.

At least with RSG you are buying sensibly priced reserve ounces with lots of potential for value increases of those ounces if the reserves start being matched by cashflow from those reserves. Remember NST's JORC complaint reserves in the ground are valued by the market at about 10 x those of RSG's. The risk between each companies ability to extract those ounces isn't that wide IMO and NST's reserves in the ground don't offer any sort of sensible premium to the gold price. Also remember that on paper RSG's LOM AISC is pitched lower than NST's (but who can trust the feasibility studies anymore). Proof needs to be in the pudding. I'm pretty annoyed that I had to sell here to mitigate risk in my overall portfolio because of the DCN debacle but I still wish the company the best of luck and I'll be watching for signs that their plans are being put on track.

The June quarter UG production tonnages from Syama and recoveries from the sulphide circuit will be interesting to see. If the ramp up is back on track and only delayed by one quarter it would seem to be a buy from my perspective. Esh