FY24 Duketon South 244.5koz AISC 2254/oz Tropicana 127.8koz AISC 2096/koz
FY25 Guidance Duketon (which is just South now) 230koz AISC 2650/koz Tropicana 135koz AISC 2450/koz
What’s that? A 16% increase in AISC for Duketon? A 17% increase in AISC for Tropicana?
Duketon is explained as being due to North going away (really? that should reduce AISC) and going further underground.
Tropicana is explained as being due to shortages of labour and equipment.
In Q4 2023 the AISC for Tropicana was 1259/koz and for Duketon was 2026/koz.
AISC at Tropicana seems to be skyrocketing. RRL used debt and a capital raise on a falling share price to pay for it and its looking much worse by the year, and has a royalty claim over its head.
McP just takes 30mil/year. So adding to the 150mil purchase price it’s already cost what? 450mil?
And finally, Duketon hasn’t been invested in very much until just now. I think most in the market suspect that this recent investment is a bad one, based on recent track record and only being done to cover up that McP has just been a money pit tied up waiting for approvals forever.
I hope there’s a buyout or major shakeup soon.
RRL Price at posting:
$1.73 Sentiment: None Disclosure: Held
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