Am I missing something? I have been watching RRL for some time now, and I just can't see how it is not undervalued. I really want to load up the truck, but I am just worried there is something going on that I can't see.
Using guidance numbers from 2021 annual report (very rough calculation):
Middle of guidance for tones produced: 487,500 Current gold price (assuming no change in the 2022FY - obviously there will be change but i feel using no change in the current market is actually being conservative): $1,826.60 USD Exchange rate of say 0.73 = $2,501.10 per tone 487,500 * 2,501.10 = $1,219,284,246 in revenue Multiply this by the profit before tax % from 2021 accounts of 25.9% gives a rough profit before tax for the 2022 FY of $316,138,515.
At a P/E ratio of 10 that gives a market cap of $3.1b. Divided by the current share son issue gives a price of $4.19.
This doesn't take into account any positive news regarding McPs development approval either.
Anyway, just my 2 cents, I am really, really tempted at such low prices, but I am just worried there is something going on behind the scenes that we don't know about that is keeping the price at such depressed levels.
All in my opinion, DYOR...
RRL Price at posting:
$2.32 Sentiment: Hold Disclosure: Not Held
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