Hi Goldbear, I got back in at $1.14 because I thought it had...

Hi Goldbear,

I got back in at $1.14 because I thought it had been beaten up by the GDXJ rebalance in a stupid way. I'm not sure exactly why RSG suffered more than the others that were being reduced, but I have a theory. I think the GDXJ positioning is based on MC but the free float in RSG is less because of the the 30% La Marcha stake. That would tend to exaggerate swings to the upside and the downside.

In any case, John Welborn has been a very consistent operator. The development at Syama is first class and Nafolo just adds another first class mine that RSG doesn't have to pay to put a plant next door to because one is already there. The cash is all there to do the development at Ravenswood and the CR was achieved at $1.90. What's not to like about that?

Eshmun is talking up WAF and I can see the attraction of the drilling results. However I don't like having my risks correlated. RSG is good but Mali does come with geopolitical risks and Burkina Faso's geopolitical risks would seem to be highly correlated to me. As RSG is my largest position, I'm going to keep out of WAF until it's time to reduce RSG.

Cheers,
Tim.