The mine life is short and the volatility in the price of gold can make the NPV as exciting as one would want it to be.
Even if you attempt to lock in the NPV by hedging, which most BFS include some sort of forced hedging, it destroys the price sensitivity of the stock to the price of gold.
I have nothign against RSG as it has been kind to me in the past.
I do not consider it an attractive gold stock at the moment, because they have a lot of homework to do, and unitl such time as they have the runs on the board, I cannot commit myself to RSG.
Even if RSG bids for RBK it may not necessarily be an immidiate good deal for RSG shareholders.
The best outcome for RBK shareholders is cash in the hand, no script, if and when a take over offer is on the table.
Arhidas
neither long or short the stock
redback...reserve ann due soon., page-14
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