RSG only looks cheap as a longer term play and only if the management actually delivers after about two years of woe. As I said in a post when I sold out, RSG would run if the gold price runs or if they find lots of high grade oxide ore at Syama. The first has happened, but I do not believe its an actual breakout, but just a response to the latest stimulus announced by the US leading to higher prices of equities in addition to gold/goldies. I am expecting a retrace of this run once the market gets a fill of actual US company profit reports.
Its now hard to find goldies with good nearer term returns unless we take on some additional risks. I think SBM could be one of those in the second half of 2020, so I have them in my portfolio besides WGX, DCN (got caught out on that one), PRU and KCN.
I do not agree that MML is undervalued - its been a value trap and needs to spend around $AUD100m on a new mine decline - made some money there because I bought around 32 cents. I also think that AQG is probably only at fair value rather than being over-valued - it was a very good ride., shares can be a bit lliquid at times. RRL has some useful upside if they get their NSW gold project up, but have terrible hedging that makes what RSG has in this June quarter almost inconsequential by comparison.
I am waiting for a pullback before I put any more into goldies.
loki
RSG Price at posting:
91.0¢ Sentiment: None Disclosure: Not Held
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