breaking news, page-7

a fundie to agitate for change As a shareholder in RSG for quite some time, I can only express significant disappointment in the share price of RSG and the way they have structured their short term hedges.

A small fund called Western Pacific Special Situations fund is a substantial shareholder in RSG and have been quoted in the AFR a couple of weeks back as stating that they have approximately one third of their assets in RSG (whoah!). The fund manager said he believed that RSG is worth around $4 per share in that same article. Which by coincidence is what I thought RSG should be trading at as well given their assets.

You should verify these points yourself by finding that article, as I am basing it on my fading memory.

It was interesting to note that the individual fund manager, on a personal basis, is also a top 20 shareholder according to the latest annual report. So clearly, he believes in it personally as well.

In their latest fund newsletter (for end Feb), it was interesting to note that they said that they will start to actively take some action to reduce the valuation gap in RSG, and that they will inform their unitholders over time.

I am not sure what they are planning to do, but I hope they succeed, and if requested I will personally provide support to their cause (via my shareholding).

I still cannot understand why RSG's share price has floundered so much (relative to other gold stocks) given the plethora of assets and opportunities that they have beyond their existing producing assets (e.g. Mt Wright, Nyakafuru/Kahama JVs, Syama & Finkolo JV). Sure their Short term hedges look awful, but this alone should not account for the share price discrepancy.

I feel better now for venting my spleen on this matter.

These are just my opinions, and I suggest you do your own research and come to your own conclusions.