The two negatives here are the grade reconciliation issues at remaining Mako ore and the deferred capex out for Syama.... but the actual mined component left at Mako is not very long (some stockpile processing to follow) and I think they've built some contingency in the SSCP as it's still "on track"... and they keep generating good cash too... the third negative seems to be the VAT/tax issues in country (and a fourth negative if i may is the cash waterfall chart is always YTD not the actual quarter)...
I think there's a couple good reasons to hold onto this stock longer term though and I'm not talking about the bullish set up for gold. I think Ravenswood closes in the next ~6mths (well reported) which pockets resolute probably A$200m (ish). The other is the SSCP and what this does to economics.. Syama is about a $80-$90m per quarter cost operation.... this quarter we divide that $80-$90m by ~52koz. Now imagine you replace the ~400kt @ 1g/t open pit oxides (10koz) with ~400kt @ 3g/t open pit sulphides (30koz)... now we divide $80-$90m by 72koz (~$1,300/oz).... exploration is still sniffing too with an expanded budget.
RSG Price at posting:
85.5¢ Sentiment: None Disclosure: Held
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