Chief Opperations Office resigned today.... so he should I suppose Grade issues and now inadequate flooding protection - they need a gun and they had a pop pistol Time to upgrade, I suspect highly qualified and experienced operations officers are going cheap in Australia at the moment - so im sure they wont have too much trouble finding a great replacement.
Nobody knows, it could - their revenue for the next 3 months will be horrid - but the market might over look that. I kept about 1/3 of my position when I heard about the flooding
Guyz, been a while since I posted. Have been scrutinizing our miners with sole concerns here in our dirt, rather than those with OS interests ie: Mali, Africa & Phillipines etc. I'm soon close to getting in with Regis..... Great company dynamics & low all-in costs to fair well if we have a crash or, severe correction soon. Their P/E is friggin good considering equity & the likes. May even fire tonight?
^^^ Been watching it but still have concerns with monthly chart and also need to read up on the company again. Think it's bottomed? I'd rather wait for confirmation. You probably know Rick Rule of Sprott Asset Management reckoned that 70% of junior resources on the ASX were worthless - he won't get much argument from any local 'investor' who's tangled with them - but in October 30, 2013, he praised the management of RRL. That was before the February 2014 flooding issues and when the share was $1.20 higher than today. http://www.theaustralian.com.au/bus...nnows-worthless/story-e6frg9df-1226749283862#
Have researched the hell out of the company over past few days & compared it with Northern Star & it comes out far ahead imho. Sure, juniors need caution but, NST & RRL are pretty much mid-tier you reckon? RRL has great management. Projected 10 year debt free. Huge positive equity etc. NST has just indebted themselves nicely & too risky now for me just yet. Further down the track, dunno? I also think they'd weather a SM crash very well. At least compared to those miners with debt at present......
I put in RRL and BDR buy order today. Half expected capital for each, with other half entering either a new low or a market reversal. Check out BDR. Good PE, good resistance to falling gold over last few years, dividend plan in the works for later this year. I'll check out NST further. Want to spread over half a dozen miners at least over the next few months. Small, mid and big caps included.
RRL very tempting. Monthly chart looks scary to me. Weekly, and more so daily, look more encouraging. There's positive divergence happening on the daily and weekly charts but nothing yet on the monthly. Additionally no interesting candlestick pairs happening on the monthly. Always dangerous buying into a downtrend because of a belief in fundamental value - gold stocks doubly so. Oceana Gold (OGC) also attracts following its record quarterly EBITDA, and the building production from its Didipio mine in the Philippines (AISC of negative ($332) per ounce sold) I probably should not get more exposed to NST and DRM. Doray Minerals has a potentially powerful drilling program going on after a cap raising at a high share price (i.e optimally low dilution effect) and the M.D said the charging rates of drilling contractors have dropped off by half or something. So lots of drilling at a cheap cost to shareholders, all imo. RRL Weekly - arguably divergence of indicators to price has been happening since April 2013, high positive volume bar 1st week March RRL WEEKLY 2YR Chart
My RRL order got hit soon after @ $2.25. The reason I'm putting half capital now is because of the downward trend you mention. Miners are already overbought and I think this is why they have shown resistance in 2014. So I'm catching the falling knife with one hand only. I have a spare xD Here's some ratio charting I been mucking about with. I'm going to add more stocks to it when they pass the fundamentals. So this is BDR and RRL to gold ratio charts, then compared with each other as a percentile graph, Jan 1st 2012 being 100% mark. So these graphs show that BDR has had more upward separation from gold over RRL. Something to consider also, RRL is about double the size of BDR. [imgz=http://forums.silverstackers.com/uploads/12623_bdr_rrl_ratios-page-001.jpg][/imgz] Morningstar RRL wrap sheet. FYI. [imgz=http://forums.silverstackers.com/uploads/12623_rrl_advancedprofile-page-001.jpg][/imgz] [imgz=http://forums.silverstackers.com/uploads/12623_kcn_advancedprofile-page-002.jpg][/imgz]
Is there no refuge from the slings and arrows of outrageous misfortune.. Update and 2015 Production Guidance Still dealing with aftermath of rain flooding. Doesn't look too terrible a result? It's the doubt and lack of liquidity I guess. Should come good if gold does the same.
Heh yeah, that is the biggest single day drop I've ever experienced. Just my luck, days after I buy. In the last several mins of trading I made a rushed decision to buy the other half of expected capital @ $1.70 and it got triggered minutes later at below market. I feel it was a fear driven overreaction and it should rebound from here. Let's hope I don't eat my words xD.
Wow...that is the biggest move down I have seen in a long time for such a resilient stock. Probably have a reactionary rise in the next day or two but will have to wait a bit longer to see the trend. Great updates guys, thank you. My interest in this stock is now high.
Thought I should add on this - there is nothing offering on the charts now to give encouragement imo. The momentum improvement (positive divergence) on the weekly and daily charts has been blasted away by the 25% drop on Friday. The poor monthly appearance mentioned is now obviously worse. Sure there's a possibility that it has plumbed the depth, but chartwise there is not the slightest evidence yet that I can see. So if that view of the chart is right a reasonable buyer or holder would have to be buying/holding on some fundamental grounds. I've noticed that a few thoughtful posters are expressing caution about RRL's hedged positions. I'm not competent or energetic enough to assess the risk from hedging contracts, but best to feel confident about the issue if you have or are taking a position. I haven't even tried to work it out myself. The problems for a producer from hedges usually comes only if they are committed to ozs that they can't actually produce and then the market turns against them with the gold price rising. So they have to effectively buy on the market at a higher price than they are paid to deliver the committed gold. The difficulties can mount if this coincides with a period of lower grades or something else that raises cost of production in addition to lower production. Might be nothing to be concerned about with RRL as it has had a good production performance until now.
I'm puting this out there as one who posted prior on this co & well.....I kinda feel the share price will drop from here. Sure, you can't have a buyer without first having a seller. Someone is interested although, imo, shares will drop further come Monday. They fell pretty friekin quick very late Friday after all. Report article was in at round 9am! EDIT: prices fell bad the first 30 mins into trading on Friday. Similar deal today.
Have been researching 2014 Q1 reports for DRM & BDR for few hours today. BDR is certainly the one I'll be keen on from here out as a result. Am keeping dry powder for a hit I reckon in the upcoming weeks. I have a price target. If DRM comes down a little more realistic, perhaps I'll dabble in it. Basically, the AISC of BDR both for the quarter & projected for the year, when you consider the current share price, definately outlays the risks of mining abroad for me. Though I like DRM mining here in our own backyard, I feel they are too small for the share price value etc.
I'd say def spread it out over at least three gold stocks. So if something like this RRL thing does occur, your losses are mitigated. When PMs go to the bull, pretty much all gold stocks will fly ahead. The 2009-2011 bull market saw gold miners shoot an average of 1700% over gold itself. BDR also has sell hedge going on, around quarter mil oz at 1600USD if I remember correctly. This would mostly explain the resistance to falling gold. I wouldn't look at a hedge at a bad thing. Forward market hedges are very liquid. If spot price shoots above the hedge they will simply close the position. There is no interest cost in holding a forward hedge, just rollover charges every expiry, which is not very often. I am long BDR.
Thanks BiGs, appreciate your take on this. I contemplated the hedging you've noted but admit I'm not that clued up on the way it works other than the wise move made. Not sure how they managed it from the lenders with POG so volatile. Esp' now?
