unknown. The $400m relates to RRLs next project - McPhillamy's. AISC number is good, but.. then you need to take non-sustaining capital, which basically occurs almost every year (though it can vary widely). The best projects require little more than more stripping or U/G development.
RRL is likely to see 2-3 years of heavier capex expenditure, due to the new project, plus, needing to rebuild their current reserves. Which will require major stripping of main pits, and new pits being accessed.
My one regret is not really comprehending just how much of an effect the hedging RRL has. Basically, they are producing approx 80k p.a. that ears them nothing, and this will continue for the next 2-3 years. Meaning, I sort of view their production profile at close to 280-300k p.a. Which then makes the overall valuation, somewhat pricey, when SLR/RMS/WGX all have production just below this.
Perhaps a slightly jaded view point, but. My sentiment has cooled on RRL. Though with a higher POG, RRL will do well, as they have an awful lot of ounces that can eventually be converted.
RRL Price at posting:
$2.99 Sentiment: Hold Disclosure: Held
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