only appearance on this board today. In a matter of hours he has provided more bull shit than the total combined of all others since the beginning of the year. This should speak volumes to those of you who are truly interested in RIC's very lucrative business. I hope they're continuing to repurchase & retire shares on the open market.
Hmmm - the company has no long term debt and a lot of cash on hand - sounds like they have been making money to me. i have only been following the company for about the last 6 months. Has there been prior dilution to account for this cash on hand without debt on the books?
Fuel costs have dropped considerably, this should only help cash costs of mining the gold.
Oddly enough- if you believe gold will rise - it can be better to invest in companies with higher cash costs. Why? a more marginal mine becomes a good mine and percent value increase is more. The cash flow increases are more dramatic.
Consider company "A" with cash cost of $250. Gold at $850 they are making $600 oz. Gold goes to $1000 then they make $750 per oz - a 25% increase in cash flow - makes for a good report.
Consider company "B" with a cash cost of $550. Gold at $850 they will make $300 per oz. If gold goes to $1000 then they make $450 per oz - this is a 50% increase in cash flow - makes for GREAT headlines.
1) Convert the Canadian "cash costs" from third quarter (C $734 and C $485), using today's conversion rate (one "loonie" equals US $0.80)
2) Use today's gold price (US $855)
3) Use today's production numbers for both mines
4) Calculate how much quarterly "cash flow" they would theoretically be making today.
I'm not saying I'm right, and I know I really simplified it, but I would be shocked if the fourth quarter 2008 wasn't drastically better, at least on a "cash flow" basis, when compared to the third quarter 2008.
I bought more RIC today. Things probably will change tomorrow, i.e., gold price will crash, Canadian dollar strengthen, RIC share price plummet, but the fourth quarter for RIC had to be good.