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iminvestor101

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06/06/17

18:09

Post #: 25131495
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Originally posted by loki01 ↑

People do not buy our goldies for their dividend, at least not at present. Only RRL is paying a meaningful dividend, relative to its share price.

So long as the USD POG is above 1245 during July, I would be very surprised not to see RSG trading at $1.40 plus, which is a low target. I expect that after the rebalance and end of year tax loss selling that downbeaten goldies with a future like RSG will have a 20-30% bounce off their bottom by end of July.

I am holding and will buy some more next week if they trade lower.

However, I think the gold price is range bound and could head down to below USD1200 at some stage in 2017, especially if there is a significant recovery in the USD.

Gold has held up well due to high Chindian and Turkish demand. Turkey had its largest monthly gold import of around 48 tonnes and India's official May imports are expected to be over 100 tonnes as importers bought in anticipation of the new GST rate just announced. If Indians have over-bought in May then their subsequent imports will be lower and the banksters will use the lower global demand to play with the gold price on the COMEX etc.

At least with the lower AUD the Ravenswood operation is somewhat protected from a possible lower USD POG.

According to this website RSG has a 12 month median target price of $1.75, which is about 50% higher than where it is now trading.

https://markets.ft.com/data/equities/tearsheet/forecasts?s=RSG:ASX

I am not saying RSG is risk free money - there are significant execution and country risks. And the gold price can do anything, including head down to the dreaded USD930 level that some have been threatening.

loki

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Disagree with your gold forecast. We are trading out of that range now to the upside. If Rsg doesn't move with a higher gold price then the short squeeze will be insane at some point thereafter. If Rsg doesn't open considerably up with sustained pog move, then a short squeeze could be imminent. I mean just look at that divergence!

Something has to give... hopefully not the sp

RSG Price at posting: $1.14 Sentiment: Buy Disclosure: Held
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