Under valued, page-226

Pretty ugly looking RRL share price action in recent times. It could be due to one of a few things -
. bad news that has led insiders to sell;
. expectations of a falling gold price;
. fundies generally selling gold miners due to investors wanting their money out of this sector;
. the McP project likely to be rejected, but I do not think the current share price reflects much if any value for this project.
. the relatively short mine life of the Duketon operations, and concerns about ore reserve replacement.

Being a bit of a gambler without any inside info, I have bought a few more shares at $2.18 to average down to $2.46 on a hopium rebound later this year/early next year.

My main concern is the level of reserves at Duketon. If we get a prolonged gold price downturn - say 2-3 years without a replenishment of these reserves then the share price will get punished even more. Tropicana also has a shortish mine life, but I think that will be increased.

Its best to keep a lot of cash on hand in case of a prolonged downturn, because the miners can get a lot cheaper.

GLA

loki