Your view on the hedged ounces has merit but on a long term basis not only will the hedged ounces decrease but the average hedged price will increase. As we end FY 2022 the average hedged price/Oz should be circa $200 above today’s shocking level and the percentage of annual production hedged will concurrently be materially lower. Based on the step up in production flagged by the company (and the McPhillamys project?) the future cash flows could be very good.
My investment in RRL (and other stocks) is primarily a bet on gold. If the gold price goes to where I expect it to go the entire market will go ballistic. On a relative basis (NST, EVN, NCM, SLR, RMS etc) I see RRL representing good relative value. A market cap of $1.5b is very far from being stretched. I would not be surprised if others have RRL on the radar for a takeover at this price level?
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