Hey, no problem at all, I haven't posted here in a long time and then I come with an opinion - I should be able to defend or provide perspective on my position.
I was heavily invested in RRL in 2021 and 2022.
The company had just acquired the stake in Tropicana, and during that time suffered a number of issues and set backs.
I get running an asx listed company isn't as easy as theorising on the internet, but I also believe it's easy for "professional management" (people who are brought in, rather than build) to do nothing when the majority of their wealth isn't tied to share price performance.
I can't find the original post, I'm on my phone and maybe my post is too far back for my history, but I did write a big post on why RRL should consider acquiring OBM for an ask script offer.
The post is here
https://hotcopper.com.au/threads/ann-quarterly-results-conference-call.6700358/page-4?post_id=60934396But in short...
OBM had a fully operational plant, massive land holdings and significant issues with commissioning and grade.
They also had (have?) $300m in tax losses.
Their share price fell from $0.40 to $0.02c.
Who knows what price would have got the deal done ($0.10c? $0.15c?), but there were a lot of synergies and minimal cash outlay for almost immediate hedges relief.
RRL needs more prospective land, they are good, disciplined operators who could figure out what was going on for minimal investment and the needed hedges addressed, OBM needed more experience, more discipline and more resources (money).
RRL management could and should have done something about the hedges back in 2021 or 2022, and the opportunity cost since then had been immense.
The company isn't in a better state now, than when it was back then.
Sure there could have been additional strain on the company, but there is strain now, so the result (with the benefit of hindsight of course) would have been net net.
Management have been paid, and taken their performance shares (of which a large component were based on weak ESG metrics), and the share price has done nothing.
The resources have been depleted for very little benefit to shareholders, but the ounces haven't been replaced.
Apologies for coming in negative, not my intent as not holding, but I'm not a fan of management and think they should have done a lot more for the $3.Xm they "earn" per year.
I wonder if / how the investor presentations have changed in the last 2 years...
(20min delay)