opinions before 31 dec 2011, page-5

gold stocks are all undervalued relative to POG and their recent profits which mostly rose across the board. If POG holds and RSG meets production targets @ historical cash costs the stock will rise simply because earnings will be high. Valuation is based on earnings. If the price doesn't reflect the earnings it soon will.

Costs may be high for RSG, but let's remember if they meet guidance of 330,000 @ an average price of $1350 per oz, even if costs are very high they are still going to make alot of money.

It's also a prime takeover target. Second largest producer on ASX, attractive operations in Africa. Consolidation in the gold sector is likely to continue.

RSGO should be ok imo, provided there is no unexpected events for RSG this year.