"Resolute Mining Unveils Syama Potential" is an article by Eva...

"Resolute Mining Unveils Syama Potential"

is an article by Eva Brocklehurst about the revised DFS - dated 04/07/2018 - from the Share Cafe website - link

http://www.*********.com.au/fnarena_news.asp?a=AV&ai=49159

It is free info/views, but perhaps one needs to subscribe to them to actually gain access.

Let me know if there is a issue with accessing the article and I will post it.

IMO JW really needed to do a webcast on this major announcement. Otherwise most of the analysts' questions at the next quarterly webcast later this month will be about the implementation of the DFS upgrade, in particular how it will be funded and the extent to which it will impact on the availability of sulphide ore in the near term - the stockpiled ore grade was down to 3.1m tonnes at a measly 1.3 g/t at 31 March 2018 (and lower now, I presume) requiring blending with a lot of higher grade ore if the sulphide circuit is to provide any meaningful surplus cash.

The extra ramp up and pre-prduction costs is $USD118m (at the current exchange rate of 73.8 cents AUD/USD, that is $AUD160m). If they develop Bibiani that is about another USD75m (but probably a lot higher if they go the automation route) ie $AUD102m. The Ravenswood expansion (total cost $AUD258m, including $126m of initial and later stripping costs) is not going to deliver any surplus cash beyond what is needed to undertake the expansion for the next 2-3 years. - see Ravenswood expansion feasibility study

https://www.asx.com.au/asxpdf/20160921/pdf/43bb9jkc5s2byn.pdf

My sense of current Syama sulphide gold production is that they will underperform until they get full production from the underground mine. Unless they can find a lot more higher grade sulphide ore from existing pits the milling of low grade stockpiles alone will at best only produce a very modest cash surplus (and a very high AISC), while the oxide gold plant will provide some cash surplus but this will be far to little given their capital outlays, investments in exploration and other companies and given their level of net cash.

JW needs to pull his horns in and get Syama sulphides operations functioning and perhaps look to upgrade that mine with all the wizzbank automation gizmos gradually otherwise RSG will face an extreme level of risk and the injection of a large doses of funds via a mix of loans/CR and issue of perhaps another 100m shares.

Lets forget about acquiring WAF for now. RSG does not have the cash to do anything with Sanbadro and will be busy for the next 3 years getting Syama, Ravenswood and Bibiani either into production or optimised.

USD POG under 1200 would really hurt RSG given its current transitional phase.

I am looking forward towards the next quarterly report with a lot of concern, and I think Colinchi has a valid point about the state of RSG's finances given all of its activities.

loki (only another 720 winks and all will be OK with RSG, we hopes.)