RRL (MC 1.468b) has estimated FY22 production from Duketon and Tropicana (30%) to be ~500ozs with an AISCs of ~A$1,330.
Currently the A$POG is ~A$2,500.
McP notwithstanding, that's a projected EBITDA of A$585m.
Therefore, Regis P/EBITDA is 2.51.
For comparison:
NST (MC 11.26b) projected FY22 (1600@1525) P/EBITDA is 7.22
SLR (MC 1.505b) projected FY22 (245@1600) P/EBITDA is 6.83
I appreciate there are many other factors to be taken into account in conducting an appropriate valuation, HOWEVER this comparison uses exaggeration for effect, to underline the RRL share price value relative to other other Oz Gold stocks. Rick Rule further states that ALL Oz Gold stocks are undervalued.
I can't imagine any would be suitor acquiring 90% of RRL shares (at the current share price) to enforce a compulsory takeover.
RRL Price at posting:
$1.93 Sentiment: Buy Disclosure: Held
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