If RSG management go back to the market for more money that will be the second time they have had to raise capital because they underestimated the cash burn for Syama. Not sounding the alarm bells yet but $7m at 30/06/09 is probably closer to zilch now. Expect a capital raising very soon. The dissappointing fact is, but for the hedge book they would be rolling in money. That 100K oz of hedged gold is costing RSG $40M ebit per year. I sincerely hope these clowns are still not delivering into the hedge when cash is so tight. Another question that begs answering is that if RSG's outlook is so rosy then why hasn't the directors been accumulating? Nothing better than puting your money where your mouth is. I suspect the reason they have not made on market purchases is that they know they will get a top up from the upcoming placement. If a placement is coming we should get a pump before hand and then comes the dump!
RSG Price at posting:
60.0¢ Sentiment: Hold Disclosure: Held
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