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4/24/09

More thoughts about Rusoro (RML.v)

Rusoro workforce seen as they take a
mid-morning cigarette break and leisurely stroll

Very interesting mailbag Chez Otto between yesterday and this morning, as it seems there are plenty others out there looking at RML.v right now and I had plenty of received comments (thank you) about the Trading Post section of yesterday. So let's just sum up here what I think on the stock right now.

  • Check out the latest inside trades. Interesting, no?
Apr 23/09 Apr 13/09 Salamis, George Direct Ownership Common Shares 10 - Acquisition in the public market 5,000 $0.470
Apr 23/09 Apr 15/09 Agapov, Andre Vladimir Direct Ownership Common Shares 10 - Acquisition in the public market 50,000 $0.480
Apr 23/09 Apr 14/09 Agapov, Andre Vladimir Direct Ownership Common Shares 10 - Acquisition in the public market 23,000 $0.485
Apr 23/09 Apr 14/09 Agapov, Andre Vladimir Direct Ownership Common Shares 10 - Acquisition in the public market 27,000 $0.470


  • As for the results to come we're about to get the YE'08 filing but what we'll need to zoom in on are the 4q08 numbers and not the whole year. This because the 4q08 quarter's production was stronger, costs lower and also RML wasn't benefitting from the elevated parallel rate for dollars over Bolivares Fuertes (VEF) in earlier quarters.
  • I think 4q08 is going to look pretty good, but maybe the real deal will be shown in the company's 1q09 quarterly that we'll get in maybe a month's time (an estimate based on typical filing times). Jungledrums tell me that the company has been working full tilt and costs are down, too. That VEF rate is really helping the company now, too.
  • Even without the GRZ buyout, RML is expanding quickly as its own generic projects are on track, it seems. This of course means that the net revenues won't make it to the bottom line as yet, because they're busy investing what they make. Therefore I personally will be far more interested in the company's EBIT number than the final bottom line or EPS number. You should be, too.

So there you have it; the reasons why I like RML.v right now. You MUST DYODD on this one, dudettes and dudes, because we're talking about a stock in Venezuela, we're talking owners generally unloved by the Canadians (which is reflected in warranted or unwarranted press..you be the judge) and we're talking the recent court case where the beaky guy went against RML and gave his reasons loudly and clearly. In other words, this is by no means a risk free trade. For the record I do not own right now but may pick up a few shares in the next couple of days and will inform in the Trading Post series if I do. It's certainly very high on my shopping list but on the other hand I won't be chasing any prices. Here's the RML 12 month chart.