Ann: Resolute Loan Facility, page-20

Most goldies dropped 5% today, surprising considering gold prices are only just off all-time highs. Tonight, gold prices look to be settling and in recovery mode from a minor drop the past week from around $2530usd. The gold price is now at $2501usd as I type this. Therefore, no reason for a big gold sector wide sell-off, so we should gain these share price losses back the rest of the week. Bargains on offer low 60c for RSG.

RSG management clearly have their eyes on a prize. Probably a few gold projects of value in the mid-tier space which they want to purchase. Early last year NST announced a 600M loan for M&A and they were around $11 at the time. Now they are around $15. I can't see this news as any reason for negativity for RSG, because like any investment or purchase, you need money to make money. Sure, RSG could wait 2-3 years to make a couple of hundred million in profit and be able to purchase another gold asset. However the time to buy and capitalise on any investment is clearly now. Especially with a non-hedging mindset. These are the times to be getting record profits, especially in Africa with heavy interest from Russia and China who are both very pro-gold and trying to scoop up as much as possible.

I am happy with this decision.