Randgold is showing excellent relative strength in these markets. With the FTSE 350 Mining Index down 75% since May... RRS has bounced sharply and is barely off it's highs... still 32% up over a 12 month basis. What is going on here?
This looks to me like extremely anomalous behaviour for the sector... i'm inviting any comment here... it looks ripe for new highs as soon as the market turns...
I'm buying some now and asking questions later...
Huh, it's odd. The latest earnings update (Nov 6th) indicated that lower gold prices and production (a decline in the average grade mined at both the Loulo and Morila operations in Mali) had reduced third-quarter sales by 18% compared with Q2. They did say that they expected a stronger fourth quarter from an operational perspective, but I am likewise perplexed that the gold price volatiltiy hasn't hurt them more. Looks a mispricing on the upside to me, pending further info.
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSL66280620081106
