RSN - Renison Consolidated Mines

[silent knight]

You know my opinion. It hasn't changed. The coal announcement today was welcome but sp is not likely to get exciting for some time. Most junior miners are off their highs from some time ago even though gold is doing well. There is one line of thought that I find reasonable which places commodities in a correction, but near the bottom of that correction. I intend being patient and maybe even accumulating a bit, but then that is my pattern. RSN would not suit an aggressive trader at present...thank goodness.

 

[The Bookeeper]

You know my opinion. It hasn't changed. The coal announcement today was welcome but sp is not likely to get exciting for some time. Most junior miners are off their highs from some time ago even though gold is doing well. There is one line of thought that I find reasonable which places commodities in a correction, but near the bottom of that correction. I intend being patient and maybe even accumulating a bit, but then that is my pattern. RSN would not suit an aggressive trader at present...thank goodness.

I'm with you on this s knight. RSN is quietly building up to be a mid tier miner. So still enough time to get more exposure for us

Its good to see first gold mine in production now, meaning cash flow, and hopefully less capital raisings.

Cash will come in handy considering that RSN have two bank feasability studies going on at the moment - Ashford Coking Coal and Argate (North QLD) gold mine prospects.

And this is not to mention the encouraging signs from the coal finds at Arrawatta.

Could RSN and NEC have found the new Hunter Valley???
Hope so, and if so, Yippeee!

 

[KaiserBun]

More good news coming out of RSN.
Cant wait for the stock to start moving in a northern direction.
Guess people are waiting to see cash flow statement for the quarter.

 

[KaiserBun]

They announce they have greater Gold resources at their Agate Creek (North QLD) prospect - no movement.

They announce an increase in Gold resources at their operating under ground Tom Gully mine (NT) - no movement!

They announce that they will increase production by 10,000 ounces per year and mine life for Tom Gully mine - no movement!

What do they need to do to get this stock moving???

And this is just the gold side!

GCL have admitted to be looking at further expansion of coal assets, through exploration and acquistions outside their current permit areas..... RSN and NEC are just up the road, and they have a find almost equal to current resources for the company, with massive potenital........ maybe i making a worng connection, (although i think NEC would fir better with GCL) but it would appear to make sense to have coal assets within same time zone within a similar area! Arrrggg!!!!!! I guess i am thinking to highly of this company.

 

[Odduna]

Had cash flow from sales ($700,000)good
Resource upgrades during quarter good

Production rate slower than expected bad
Recovery rate at 55% rather than 84% bad
Difficulty finding experienced staff bad
Further capital raisings bad

Overall, activities for quarter disappointing, and market has appropriatly punished.

However, for the coming quarter they expect:

To triple output for gold good
Further drilling results at both gold mines as well as coal discoveries good
Increased recovery rates good

If they come through, should result in positive action for share price.
Looks like a long term hold for this stock.

 

[The Bookeeper]

Had cash flow from sales ($700,000)good
Resource upgrades during quarter good

Production rate slower than expected bad
Recovery rate at 55% rather than 84% bad
Difficulty finding experienced staff bad
Further capital raisings bad

Overall, activities for quarter disappointing, and market has appropriatly punished.

However, for the coming quarter they expect:

To triple output for gold good
Further drilling results at both gold mines as well as coal discoveries good
Increased recovery rates good

If they come through, should result in positive action for share price.
Looks like a long term hold for this stock.

Not a bad analysis of the situation Odduna.

I believe the two major points that spooked the market were:

* the lower production rate; and
* recovery rate at 55%

The recovery rate at 55% will be looked after by the fully commissioned processing plant which only occurred in late September, therefore, really a non-issue now.

However, one must remember that Gold stocks are not the flavour of the month.

Going to start trawling through the old annoucnments to see when the drilling program will recommence at Tom Gully's and Agate.

IMHO, i want the drilling to commence at Tom Gully's.
Increase of resources at site will allow another reavaluation of mine life and production level which would please market (only of course its good drilling results).

 

[KaiserBun]

Not a bad analysis of the situation Odduna.

I believe the two major points that spooked the market were:

* the lower production rate; and
* recovery rate at 55%

The recovery rate at 55% will be looked after by the fully commissioned processing plant which only occurred in late September, therefore, really a non-issue now.

However, one must remember that Gold stocks are not the flavour of the month.

Going to start trawling through the old annoucnments to see when the drilling program will recommence at Tom Gully's and Agate.

IMHO, i want the drilling to commence at Tom Gully's.
Increase of resources at site will allow another reavaluation of mine life and production level which would please market (only of course its good drilling results).

Not sure if you checked out the announcement made on 27.11.06
Chris Rawlings heading off.... pity to see him go.
Companying is doing an assessment on all operations????
It really only has 4!

I am hoping nothing is wrong, but has got me spoked that maybe 2nd gold mine may not go ahead??

On the brighter side is that they are inserecting more gold at Tom Gully's than estimated and that processing plant is gearing up.

Hope the operations are still all good for RSN and that SP starts moving north.

 

[Odduna]

Not sure if you checked out the announcement made on 27.11.06
Chris Rawlings heading off.... pity to see him go.
Companying is doing an assessment on all operations????
It really only has 4!

I am hoping nothing is wrong, but has got me spoked that maybe 2nd gold mine may not go ahead??

On the brighter side is that they are inserecting more gold at Tom Gully's than estimated and that processing plant is gearing up.

Hope the operations are still all good for RSN and that SP starts moving north.

Hey there Kaiser,

Yup have checked out annoucement.

It will be interesting to find out why Chris left RSN.

I dont think it would be the failure on their promise to markets for the past couple of years that they will be a producer of 120,000 ounces of gold within the next 2 years, its being going for a long time the 2 years!

I'm not really worried about the company checking out its operations, its a smart thing to do. They maybe able to find ways of bringing the projects online quicker and cheaper, never know.

The Tom Gully news, was interesting to read, good to hear they are intersecting more gold than they used for estimate used for JORC.
Processing plant increasing recoveries is good, but would have preferred to see some cold hard stats: update n gold processed and recovery rates rather than the general statement.

Not sure which way SP will go, hoping it will go up, but will only do so with positive news from production as well as drilling results.

 

[Nifty49]

You sure it was Chris who left?????

Substantial Shareholder and MD Richard Seville resigned.

RSN needed a shakeup!

 

[Odduna]

You sure it was Chris who left?????

Substantial Shareholder and MD Richard Seville resigned.

RSN needed a shakeup!

Opps, you right Nifty, sure buggered that one up.
Richard Seville has left, Chris is stepping into MD role at the time.

Looking at the Trading Halt announcement, Richard has resigned as he has taken reponsibility for the cost over runs and delays in full production at Tom Gully..... (recovery rates up to 80% now and almost fully staffed)

Considering the trading halt is for capital raising, and that capital raising was announced a few days after Richard resigned, could it be a case that Richard (being one of the larger shareholders) fell out with board in relation to this new capital raising????

Maybe he is disgruntle, like i am, as yet another capital raising dilutes my shareholding.

 

[The Bookeeper]

I know where you are coming from Odduna.
i am very at this latest capital raising by RSN.

They raised $4 million in October, why do they need another $7 million in less than 2 months??? Where did the $4 million go

They sure seem to need a lot of cash for this rapid expansion.....

On another note, was interesting to read broker reports on RSN.
Glad they see it as a mid tier gold producer if the 2nd gold mine comes online.
They did give an expected value of up to 29 cents by Dec 2007, guess the new capital raising sure blows that out of the water....

One last thing, i hope the rumor on hotcopper is completly wrong, i don't want to see this company breaking up into 2, one for gold and one for coal..

I guess i can only pray for good news at the moment.....

 

[KaiserBun]

Well Bookeeper, i am keeping fingers and legs crossed for this one.

There hasn't been much joy this last few months:
shares tumbling from high 20's to mid teens
MD pushed
And a couple of capital raisings that have diluted investments.

However, looking forward:

Tom Gully's Gold Mine coming onto full production (10K ounces next Quarter)
Drilling at Agate Gold prospect recommencing in January 2007
Bank feasability study for Agate due around March 2007.

Ashford and Arrawatta Coking Coal propsects have further drilling planned for first half of 2007.

Also Comsec's (Aspect Huntley) provided these forcasts

2006 2007 2008 2009
EPS -3.4 -0.3 2.3 6.2

Although recent events have been bad, keep an eye on the prize, it appears company is moving in right direction. ie hopefully that will equate to an increase in share price.

Have a merry christmas, and lets hope 2007 is a better year for all.

 

[Odduna]

Well Bookeeper, i am keeping fingers and legs crossed for this one.

There hasn't been much joy this last few months:
shares tumbling from high 20's to mid teens
MD pushed
And a couple of capital raisings that have diluted investments.

However, looking forward:

Tom Gully's Gold Mine coming onto full production (10K ounces next Quarter)
Drilling at Agate Gold prospect recommencing in January 2007
Bank feasability study for Agate due around March 2007.

Ashford and Arrawatta Coking Coal propsects have further drilling planned for first half of 2007.

Also Comsec's (Aspect Huntley) provided these forcasts

2006 2007 2008 2009
EPS -3.4 -0.3 2.3 6.2

Although recent events have been bad, keep an eye on the prize, it appears company is moving in right direction. ie hopefully that will equate to an increase in share price.

Have a merry christmas, and lets hope 2007 is a better year for all.

Cash flow report out, company burning up a lot of cash.

Looks like the call on the partly paid shares means no capital raisings for this quarter to keep company a float. well i hope.

I feel sorry for those who bought in when stock in the 30 cent range, must be

Dipping below 10 cents today, heavy trading. More bad news on the way?????

Wonder what performance agreement the execs have at the moment. MD gone for being 'too optomitic' with a mine that will be at least 9 to 12 months behind full production level.

Cash flow causing problems for the drilling other sites.

Just hope the sunshine comes back to the shares very soon.

 

[JWBH01]

Just paid the call on my options. Not happy doing this on a share going in the wrong direction, luckily I didn't pay much for these options.

Hopefully they will start heading in the right direction in the second quarter or soon after.

 

[KaiserBun]

Cash flow report out, company burning up a lot of cash.

Looks like the call on the partly paid shares means no capital raisings for this quarter to keep company a float. well i hope.

I feel sorry for those who bought in when stock in the 30 cent range, must be

Dipping below 10 cents today, heavy trading. More bad news on the way?????

Wonder what performance agreement the execs have at the moment. MD gone for being 'too optomitic' with a mine that will be at least 9 to 12 months behind full production level.

Cash flow causing problems for the drilling other sites.

Just hope the sunshine comes back to the shares very soon.

Yeah, i am worried about the cash burn at the moment too.

However, they did qualify their statement stating 'processed and sold' in their recent statement.
Maybe there is a bit of gold in final stages of processing before sale?????

A case of not putting any good spin at the moment to try and put blame fully on exited MD????

There seems to be a trend for the company to capital raise every quarter at the moment. So the partly paid share call is their capital raising for this quarter, maybe another one to come in March/April?????

Might contiue happening until Tom Gully full operational.....

Just paid the call on my options. Not happy doing this on a share going in the wrong direction, luckily I didn't pay much for these options.

Hopefully they will start heading in the right direction in the second quarter or soon after.

I dont see any happy days til the July Quarter commences. But i do hope i am wrong with this.

Hopefully, the long awaited FULL production of Tom Gully will be reached.

 

[JWBH01]

Can't go much further down so I might as well see what happens, but I will have to make a decision before the call is due next year.

 

[KaiserBun]

13 million shares traded????

Is there something happening that us poor mugs should know about?


Must admit nice to shares starting to head in a northerly direction.

 

[arkady]

What's the recommendation on this stock? 15 million shares traded in one day last week on the announcement of the Toms Gully sale agreement. Maybe they should of held onto it and watch the money finally come in.

 

[arkady]

Going by GBS Gold first quarter report they seem to be happy with the Tom's Gully Mine sale contract.

"The Company has received a draft NI 43-101 technical report confirming that Tom’s Gully has an indicated resource of 1,413,000 tonnes at 8.1g/t for 368,000 ounces of gold and an inferred resource of 563,000 tonnes at 7.6g/t for 137,000 ounces of gold. A final technical report will be filed on completion of the transaction. The Company has completed its due diligence review with satisfactory results, and the full sale and purchase agreement incorporating the due diligence results is now being finalized. The initial purchase price comprised the following installments (amounts shown in Australian Dollars):
• A$10 million in GBS Gold common shares payable on closing, being 3,046,315 shares;
• A$15 million payable 12 months after closing in cash or GBS Gold common shares at the prevailing market price, at GBS Gold’s election;
• A$20 million payable 18 months after closing in cash or GBS Gold common shares at the prevailing market price, at GBS Gold’s election; and
• Upon cumulative production of over 300,000oz of gold from the closing date, a 2% royalty on subsequent production. GBS Gold may purchase the royalty for A$7 million payable in cash or GBS common shares at the prevailing market price, at GBS Gold’s election."

 

[wipz]

RSN - Renison Consolidated Mines NL

Hi guys

Just wondering if anyone knows anything about this company and can give some information as to whether they are going to be doing anything substantial any time soon.. this stock has been falling for months now and looks like they have no cash...
Any potential here ??

Regards

Pete