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
Under valued, page-226
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Last
$2.16 |
Change
0.090(4.35%) |
Mkt cap ! $1.631B | |||
| Open | High | Low | Value | Volume |
| $2.12 | $2.20 | $2.11 | $15.36M | 7.100M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 8 | 62202 | $2.16 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.17 | 53034 | 1 |
View Market Depth
| Last trade - 16.10pm 11/10/2024 (20 minute delay) ? |
| RRL (ASX) Chart |