Ann: Resolute Operational Update, page-21

RSG's share price is holding up much better than what I had expected in the face of the falling POG.

I suppose the market must be expecting another solid quarterly report.

But with the AISC expected to be around AUD1280 in FY 2015 and the current gold price of AUD1387, the free cash flow on 315k ounces of production is only $33.7m, which would need to cover tax, capital costs for Syama upgrade, some interest payments, exploration, admin?, Bibiani maintenance and feasibility study etc, things will be pretty tight. Fortunately they do have some savings and perhaps they will get another windfall by reducing gold in circuit.

Next dividend payment has probably blown out to 2016, unless the POG rockets up. If it drops lower than this company is looking pretty exposed.

loki (why buy before the quarterly report is released since even if it is OK there are too many other moving parts here to justify taking this risk when the POG could move down more.)