Gaps created above and below got filled within 6 trading sessions at this time in 2017. The gap below is not entirely clear but appears to be around 5674 area to 5747. 73 pence is a lot higher than the 20p gaps that get ignored. RRS is a offering a lot of volatility to trade on. Gap above is to 6100.
The shorting began on 19th March according to more recent declarations. A strike affecting one mine is suggesting annual production could fall below forecast. Q1 does not look promising. Hopefully things will get back on track and fitting a new mill was useful in the longer term.
I still hold a little Randgold. I might be stuck with it all year.
It would appear that there will be no immediate impact and may not be implemented. Certainly cause for concern though and I think it does explain, at least in part, today's fall. Global equity markets down on inflation fears in US but gold price up a little today and excellent results from RRS did not stop its SP from falling a lot more than general market fall.
My fears that I expressed in my post on 23 Jan are coming true -
This explains why the SP fell in spite of a doubling of the dividend - the DRC is doing what Tanzania did -
"Randgold will lift its shareholder payout by 100pc to $2 a share, after a year of record production and soaring profits.
But the FTSE 100 companys chief executive and co-founder, Mark Bristow, warned that a new mining charter in the Democratic Republic of Congo would have serious consequences.
The law has passed both houses of parliament in the central African country and is on President Joseph Kabilas desk waiting for him to sign. Mr Bristow, who has travelled to DRC personally to lobby the president, said the draconian new code undermined the previous charter, struck in 2002, which was the basis for Randgold investing in the Kibali mine.
Although it would have little financial impact in the short term, the worry is the threat to stability, Mr Bistow said. You cant expect us to continue to invest in a country that doesnt respect its own laws.
Randgold, along with Glencore, is one of the few western companies to invest in the country. Mr Bristow insisted the miner was committed to supporting DRCs development, but described the new code as an over-enthusiastic attempt to harvest the taxes without thinking of the importance of longer-term investment. The company could seek international arbitration if the code is put into effect." from -
We face the serious threat of government greed. When the gold price goes up, in my opinion, they will impose huge taxes on gold miners and possibly even confiscate the mines.
It doesn't matter how much charity (let's call corporate social responsibility what it really is) you give to the locals, it won't stop politicians from raiding companies. The greed of politicians knows no limits. There was a wise man in Victorian times, Samuel Smiles, who wrote a book called "Thrift" and he said that when you give to much as charity, people start to expect it as a right, demand it as a right. Good old Victorian truth, honesty and wisdom.
As for "they get involved in social welfare for their staff and surrounding communities." - look at how much Acacia mining did for the communities where its mines are sited. The company gave away a fortune on clinics, schools and a few years ago in a drought the company bought 400 tons of food to give out to local people - but the company has been viciously attacked by the government and the fall in the share price has hit shareholders very hard.
When governments get greedy they don't care how nice you've been to the people, they just want to raid the piggy bank.
Now that they've spent $2.5 billion, will the government get greedy and steal the mine? Look at what happened to Acacia Mining. African governments are greedy, all governments are greedy.
Look at what happened to Ashanti.
"The Mayfair Set episode 2 - Entrepreneur Spelt S.P.I.V.mp4"
At 30m 45s - Tiny Rowland.
At 34 mins - cancel the lease on the mine so they could steal it - i.e. government theft and it looks to me to be just like what is happening today to Acacia Mining, ACA. Will it happen to RRS? I hope not but I don't think calling itself "a partner of the government and the people" will stop them taking it they decide to.
Randgold Resources said the Kibali gold mine is expected to be in full production in the year, following the commissioning of its underground operation's automated ore handling and hoisting system. Randgold said that what remains to be done is to ramp up underground production and complete the construction of Kibali's third hydropower station Azambi, which is scheduled to be plugged in the middle of the year.
Fortunately sold off at 7388 yesterday but bought a third back just over 7283 at my original entry. Looks as if all the big miners took a whack this morning. Will probably keep the small pot remaining.
"Is Randgold back on my 'buy' list?Gold mining shares have been a huge disappointment for the bulls lately as the metal price has languished. Many are saying the very recent explosive interest in bitcoin and the other cryptocurrencies has diverted ..."
IMO sell-off today overdone. Production dip a temporary situation and I am confident SP will recover but perhaps not until 4th quarter. Today's fall might be a good buying opportunity but as always DYOR.
"Randgold back in rally phaseThis share has been one of my star trading vehicles and I last covered it on 10 July when the gold price was falling into major support, as were LSE:RRS:Randgold shares. In that article, I outlined how to use my Break ..."
Good info, especially about the Norwegian fund. While I'm not overly concerned about erhics in investing myself, one thing I have learned the hard way is that if that fund withdraws wholly from a company for reasons other than ethics then its time for me to sell up too.
I like RRS because they are all over Africa and are one of those companies that seems able to navigate African politics successfully. There aren't many around. Pella Group is another one who own RBW (Rainbow rare earths), which I am invested in and have high hopes for*(see below).
RRS seem very flexible and able to vary production output as the gold price suits, and last time I looked they appeared to have a strong balance sheet free of debt? That may have changed, it was over a year ago and I'm aware they had some problems over the last year, but I don't recall the precise nature of them.
Thanks for all responses and help. Much appreciated.
*RBW - a recent IPO operating in Burundi with very low costs on perhaps the richest purity rare earth seams in the world, which are also free of radioactive materials - always a plus when mining rare earths in terms of worker safety and minimal environmental impact. Relatively small scale compared to the only current non-Chinese producer that is working on grades of 5-10% and a massive hole in the ground, RBW have a claim with seams 47-67% pure, a local workforce working mainly with pick and shovels and a sales agreement with a major company for the next 10 years for 5k tonnes of concentrate and the option to pick up the next 5k. IPO to first sales within 12 months is a fascinating development timeline to me. Whether or not they can make it profitable depends how many more seams they discover as production continues. Early signs are very positive. I've written quite a lot on the RBW board, if anyone is interested in learning more about a speculative play.
I offer this purely as thanks for info on RRS and saving me time of which I'm very short right now. RBW is small, speculative and has all the risk of Africa about it. I'm invested in a smallish way and looking to add if it comes back anywhere close to the IPO price, but looking to sell within a year as successful news comes out (hopefully). There is always a chance that China will cut off supply to rare earths as they did in 201, in which case prices will rocket, as will the RBW share price. That just adds a little possible spice to the project. DYOR - there is enough info and links on the ii board to learn just about everything there is to know about this company and its short history.
You say holding bullion does make sense but why not hold some via Bullionvault or one of the other online bullion businesses. You can hold as much or as little as you want and the holding costs are very low.
I also think insurance is warrented ATM but have spread the risk beyond one miner - also Polymetal and Highland Gold. But I prefer the US market for its choice of junior PM miners. I currently hold PVG and few others, including gold streamers like SAND. However you need to be careful not to put much too much exposure into any one junior PM miner - see what happened to TAHO (license suspended in Guatemala over unforeseen legal issue) etc.
What gives me confidence in Randgold, who operate in some of the most unstable and poorly governed countries in the world, is the extent to which they get involved in social welfare for their staff and surrounding communities. All miners in LDCs do this nowadays, of course, wanting to avoid blowback from angry neighbours or greedy governments. But I reckon that Randgold genuinely want to improve the lives of the people in the countries they work in. One example: During the Ebola crisis, Randgold made their own medical staff freely available to governments and aid agencies to help the situation - https://www.moneyweb.co.za/uncategorized/mark-bristow-ceo-randgold-resources/
The Norwegian Government Pension Fund, possibly the most ethical investor in the world, publishes a list of companies they won't invest in here: https://www.nbim.no/en/responsibility/exclusion-of-companies/. Many miners, e.g. Rio Tinto and Vedanta, are on the list. Randgold once made it onto a watch list for relocating 15, 000 Congolese, but the fund decided they did it ethically.
During various crises in Mali and DRC, Randgold production was largely unaffected. This suggests their strategy is a good one and investing in them carries less risk than other comparable miners.
I've always watched the gold price for as long as I remember - even since before I was interested in markets.
I've wanted in to Randgold (the only gold miner I would buy) for over a year, but wimped out when I was given the ideal entry point (under @6000p) late last year.
Of course, it still wasn't close to 52 week lows at that point, so that weighed on my decision, as did the steep fall, which, of course, is when you should be taking your courage in both hands and buying, if you think the longer term still looks sound. Which I did.
Having not held before, I was worried I was missing something though. Plus, I'm not convinced the overall downward trend in gold (measured from its peak) has bottomed yet. I was on the verge of buying gold when it was just a little above $1050 - how long ago that seems now! - even though I still thought it could go lower (I predicted as low as $750 when it first started falling).
As markets around the world continue to hit record highs, I'm more than ever wanting an insurance policy in gold in my portfolio, not cash, because GBP inflation is making cash look silly whereas inflation, on a global level., is generally a good backdrop for the gold price, despite no dividends etc in holding bullion.
Now negative interest rate scares are mostly a thing of the past (outside Switzerland and Germany) I'm as eager as ever to get into gold, having rode the big rise in the 2000s almost all the way to the peak with at least half of my original holding (Blackrock Gold & General precious metals) fund - or similar name.
The above fund has an enormous entry price so far as I can see, and I'm not so keen, to re-enter it.
Randgold is choice number 1, but it has to be nearer @6000p than @7000p for me to enter, so it might just be a pipe dream for me.
With a single miner, there's always the chance of something going wrong that you avoid with a general gold fund. To some extent on an across the market correction, Randgold will be hit as well, for example.
Holding bullion or coins is out for me, I wont be investing enough for long enough (probably) to make the security costs of storing it worth while. Same for the premium coins tend to attract - although I suppose you get that back on their sale, to some extent anyway. The storage problems still remain though.
I'd be pleased to hear from any gold experts, or amateur expert investors, who have any thoughts on the matter.
"Has Anglo American finally turned?Sentiment has turned bearish against the big miners in recent months. With South Africa announcing big changes in share ownership rules, shares in LSE:AAL:Anglo American moved lower. But have they completed a ..."
"Randgold is on a knife-edgeWith gold in a strong downtrend, I thought I would update my coverage of LSE:RRS:Randgold which I last analysed three weeks ago on June 19. The recent severe gold weakness has naturally impacted on the company shares ..."
"Randgold follows my script beautifullyThis has been one of my favourite trading markets since I started writing COTW. Long-term readers will know that I have managed to anticipate many of the major waves both up and down - and the most recent one ..."
"The outlook for Randgold remains bullishThe recent collapse in the gold price has reached front page news. On 17 April - a mere three weeks ago - gold was trading at the $1,295 (Â£1,000) level. Then, the severe collapse started and by Friday's ..."
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