just found this stock. doing my DD. dropping some notes. When I...

just found this stock. doing my DD. dropping some notes.

When I compared long term gold prices against RSG stock price, I wasn't inspired.
I know that's a fraction of the story, the share volume on issue has doubled from 2014 to 2021 for example.

https://www.tradingview.com/chart/RSG/I4qHdOWM-GOLD-USD-OZ-vs-RESOLUTE-MINING-ASX-RSG/

reading the 2021 Annual Report issued 29/03/2022
p7
- year ending 31 December 2021
- produced 319,271oz aisc $1,370/oz TOTAL GOLD SOLD 316,464oz AVERAGE PRICE RECEIVED $1,733/oz
316,464oz x ($1,733 - $1,370) = $114,876,432 vs market cap $364.3M

that has my attention.

https://www.smartraveller.gov.au/destinations/africa/mali
the travel warning doesn't look good. I'm deeply cautious of sovreign risk.

from p18 of 2021 Annual Report
"Syama is owned by local subsidiary Société des
Mines de Syama S.A. (SOMISY) in which Resolute
has an 80% interest and the Government
of Mali holds the remaining 20%."

the 20% government ownership inspires me to assign some confidence.

https://africapolling.org/2020/12/01/the-republic-of-mali-and-political-instability-context-and-issues-2/

p37 annual report p37 shows shows $367,471,000 net loss after tax.

p38
At 31 December 2021, the Company’s cash and bullion totalled $88.6 million and listed investments were valued at $47.2 million whilegross borrowings were $317.4 million. The Company’s borrowing facilities at year-end comprised of $150.0 million Revolving Creditfacility (RCF), $125.0 million Amortising Term Loan (Term Loan) and unsecured bank overdraft facilities held in Mali and Senegal.Following year-end, Resolute agreed on commercial terms with its financiers to extend the RCF for an additional 12 months toMarch 2024 providing greater financial flexibility.

NB: gross borrowings $317.4M vs market cap $364.3M. comsec give this stock a 40% Margin Lending LVR.


half the board replaced since start of 2020.

that long term chart vs gold is still haunting me.

idk why Resolute sold Ravenswood.
https://www.mining-technology.com/news/deal-news/resolute-mining-completes-sale-of-ravenswood-gold-mine/
March 31, 2020
but the Macquarie Australia Conference Presentation in Nov 2021 mentions

- A$50m 6% promissory note payable by 2027
- A$50m promissory note contingent on gold price and production by March 2024
- A$150m upside liquidity payment, linked to the investment outcomes

on paper that looks an astute move.

in summary : obviously the mining operations can turn a profit. the net loss despite increasing gold prices tells me their debt is out of control and questions the viability of future profits.