RSG

1.54%

66.0¢ resolute mining limited

Short Squeeze?, page-10

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ramAustralia

23,858 Posts.

128

31/05/21

17:31

Post #: 53543489

Originally posted by jayneen: ↑
Huge short position. Especially in a macro environment which is long gold.

Seems likely that the short position is being taken by investors with analytical ability and supported by strategic logic.

My guess is the big short position motivated in part by big computer power algorithms assessing:
- Jurisdiction. Mali is increasingly dangerous from every key risk perspective.
- Technical. "Roaster upgrade scheduled". Roaster issues equals low production and high cost. It is a problem that is not going to go away.
- Financial. Big debt pile and limited pathways available to repay. Not currently making any free cash.
- Growth. None. Production profile is falling and requires large sustaining and non-sustaining capital.
- Lack of returns. Dividend policy has been quietly dropped.
- Management and Board. Directors own no shares and none of the incumbent directors are serious miners. If you chart the track record of the individual directors in other stocks the resulting line of best fit is a very ugly red line indicating multiple examples of generating significant losses of shareholder value over time. RSG is run as a club - very comfortable slow moving conservative strategies which sustain status quo.
- T/O veto. Usually shorters would be worried by and limited by the threat of a take over. RSG has very limited TO threat due to the issues above.
- Lack of any available positive catalyst. There is simply nothing I can think of that could make this jump upwards. Recent management and board changes are simply more lipstick on the pig and make no material difference to direction. Exploration team are non-existent other than as a cost center. Operational performance improvement is a long road that seems to be doomed by bad luck and technical setbacks.

I suspect will be a slow drift downwards from here (unless we see a strike/coup/roaster event which could cause a sudden plunge).

Oh, and if you are in the "About to fly" "Get set we are going to the moon" camp please fire at will. Just tell me what I am missing. RSG does not make any money, has no intention of paying a shareholder dividend, has serious operational problems, and has no growth agenda and nobody who could drive one if they did have.
Expand
The current holdings of RSG directors.
Director Last Notice Direct Shares Indirect Shares Options Convertibles
1 Stuart Gale 14/05/2021 N/A N/A N/A N/A
2 Sabina Shugg 31/12/2020 N/A 27,273 N/A N/A
3 Mark Potts 31/12/2020 N/A 79,097 N/A N/A
4 Marthinus (Martin) Botha 31/12/2020 N/A 45,455 N/A N/A
5 Yasmin Broughton 31/12/2020 27,273 N/A N/A N/A

	Director	Last Notice	Direct Shares	Indirect Shares	Options	Convertibles
1	Stuart Gale	14/05/2021	N/A	N/A	N/A	N/A
2	Sabina Shugg	31/12/2020	N/A	27,273	N/A	N/A
3	Mark Potts	31/12/2020	N/A	79,097	N/A	N/A
4	Marthinus (Martin) Botha	31/12/2020	N/A	45,455	N/A	N/A
5	Yasmin Broughton	31/12/2020	27,273	N/A	N/A	N/A

RSG Price at posting: 61.0¢ Sentiment: Buy Disclosure: Held

Upvote

0 Great analysis

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(20min delay)
Last 66.0¢		Change 0.010(1.54%)		Mkt cap ! $1.405B

Open	High	Low	Value	Volume
64.0¢	66.0¢	62.8¢	$5.998M	9.219M

Buyers (Bids)

No.	Vol.	Price($)
2	52043	65.5¢

Sellers (Offers)

Price($)	Vol.	No.
66.5¢	44686	2

View Market Depth

No.	Vol.	Price($)
1	25806	0.655
1	25806	0.650
1	25806	0.645
1	25806	0.640
1	25806	0.635

Price($)	Vol.	No.
0.670	344907	9
0.675	325925	5
0.680	485806	7
0.685	425806	5
0.690	397476	18

Last trade - 16.10pm 02/08/2024 (20 minute delay)

RSG (ASX) Chart

Short Squeeze?, page-10

Is oil undervalued?

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Westgold sets its sights on top five producer status through merger with Karora

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

GreenX picks up prospective copper project in Germany

Venture to sniff out high-grade REE targets at Jupiter project, WA

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Short Squeeze?, page-10

Top Stories

Is oil undervalued?

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Westgold sets its sights on top five producer status through merger with Karora

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

GreenX picks up prospective copper project in Germany

Venture to sniff out high-grade REE targets at Jupiter project, WA

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News