Cheers mate. I've done some well overdue homework and apologize for not being more on top of it. So Jim Beyer promotes the dividend yield as being solid while there is no mention whatsoever that the "solid yielded 1.7%" is purely due to the halving of the share price. Beyers key highlights claim a dividend of 4 cents with no mention of the halving of the dividend. Only in his comments does he allude to a lower dividend. Now does anyone think that if the dividend was raised from 4 cents to 8 cents it wouldn't be mentioned in the key highlights as a raising of the dividend. I don't have a problem with the divvi cut, just the way these guys promote to the market. It really doesn't make a great deal of sense to me to double the rate of selling hedged gold from 20,000 to 40,000 because it negatively impacts the company's balance sheet. It Would be better off to sell the least amount because the balance sheet would suffer a lot less and if the gold price rises then most of the mined gold would more than offset the minimal hedges at the lower prices. The only problem with stretching out the hedges is depletion replacement. So if the company is confident that it can find enough ounces to keep the production up then stretching out the hedge book may be the better way to go from a risk management perspective. There's been enough gambling on the gold price from what I can see.
RRL Price at posting:
$3.07 Sentiment: Buy Disclosure: Held
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