RSG resolute mining limited

Cash flow generation - next 18 months

  1. 20,972 Posts.
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    To eleborate on a point I made earlier, how the much higher USD gold price will result in a stepped change to cash flow and the balance sheet.
    Firstly , the point needs to me made that commentary about RSG not generating cash flow even last quarter is untrue. The reality is with the problems of last year the company did many things to conserve cash , one being letting payables blow out. Last quarter witnessed a big cleaning up of that issue with over 25m paid down
    Now looking forward let’s assume forward production of 400 k and a true AISC of 1400 USD which includes everything . This is 420 USD extra than the official AISC number this year with that number projected to drop next year so that is a big buffer. Furthermore, some of the costs people talk about that have been an issue historically will be
    much lower - interest costs being a key one will be much much lower over next 12 months than previous 12 months

    Let’s assume a realised price of USD 1900.
    500 margin is 200m USD margin per annum. Assuming some debt is paid down this quarter and next , let’s assume only 50 m USD . That would put RSG in a net cash pistol of approx 75 AUD by end of next year. Add whatever
    you choose for Bibiani and Ravenswood and ending up with cash of 150-200m is very possible.

    note I have been conservative in my USD realisted gold price assumption, the truth is RSG can be hedging 2021 production at 100 USD higher right now and I am sure they are and will be doing so over next few months .

    now of course simply changing all on costs to 1350 and realised gold to 2000 for 2021 adds another 85m odd aUD cash per annum
 
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