I just listened to the Conference Call. I am not overly happy with the shareholder dilution but there were some positive take home points made during the call:
1) Access to instant cash flow. 2) Long term production benefits plus expected exploration upside. 3) Total Operating Cashflow expected to be sufficient to fund McPillamys. 4) No hedging required under the loan facility so more production attributable to RRL will be sold at spot prices. The current hedging will cause less damage.
When McPhillamys gets approved the scale of RRL may very well be more than sufficient to significantly boost EPS and when production levels get to that 700k Oz pa level the companies in that league usually are rewarded by higher PE valuations.
RRL Price at posting:
$3.17 Sentiment: Buy Disclosure: Held
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(20min delay)