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RSG $1.12

rsg, oxr and eqi are a powerful combinationimho

  1. stolwyk

    22,691 posts.
    Consider a 2 year time frame for these gold producers:

    1. Oxiana: Intends to produce 220 k ounces initially, say 250 k later. (Copper is far more important).

    2. EQI, currently producing 165k ounces/ year is looking for some 350 k ounces by 2006/2007 by preparing a new mine and facilities next year.

    3. RSG is hoping to get 350 k ounces/year, having acquired the "Ravenwood" mine.

    However they have an Option to acquire the possible Syama Mine in April (Did some Investors forget about that?). They have spent quite a lot of cash checking out the mine and finding another way of recovering gold.

    So, there is a very high chance, they will exercise the option. Assume, they will produce 300k ounces/year from this mine.

    That will make RSG a robust producer with about 650,000 ounces/year
    ------------------------------------

    So, the total gold to be produced by these 3 companies would be estimated at about 1,250,000 ounces per year.

    All 3 companies do operate in Asia or Africa and a significant quantity of gold comes from these areas where the cash cost/ounce of gold is generally much lower than in Australia.

    Gerry
    Holds all 3 stocks.
    Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.

    Info on:

    OXR:
    http://www.hotcopper.com.au/post_thread.asp?fid=1&tid=78303&sym=OXR&MSGNO=208995#208995

    RSG:
    http://www.hotcopper.com.au/post_thread.asp?fid=1&tid=97077#264952

    EQI:
    http://www.hotcopper.com.au/post_thread.asp?fid=1&tid=78774&sym=EQI&MSGNO=210149


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