They’re in a funny position because as it stood McP’s was never going to be especially viable given the capex, so having it formally killed is kind of a blessing in disguise.
On the other hand, it throws into stark light the fact that the company has rapidly shrinking reserves (they just reduced by almost 60% overnight), so despite all the PowerPoint presentations, there is not “a future with growth”, but in fact “a future of depletion”.
I think investors need to be cautious of extrapolating the current cash flows too much because the likelihood is that cash pile is going to have to go straight into M&A, and with the gold price sitting at record highs, it is not a great time to be an asset buyer.
Ann: Section 10 Declaration Over McPhillamys, page-96
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Last
$2.58 |
Change
0.040(1.57%) |
Mkt cap ! $1.956B | |||
| Open | High | Low | Value | Volume |
| $2.50 | $2.60 | $2.50 | $3.932M | 1.537M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 39 | 61256 | $2.58 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.59 | 80963 | 42 |
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| Last trade - 14.58pm 11/11/2024 (20 minute delay) ? |
| RRL (ASX) Chart |