I agree completely with all your sentiments J83, apart from RRL needing to raise cap for $1 billion McPs project - if the gold price remains anywhere above A$4500. Even conservatively they will have built cash at bank of around $750m to $800m by the end of 2025 - with a revolving facility as a back up of $300 m. In fact RRL’s current quarterlies are strong enough (over $500m per annum) to build McPs outright (2 year construction) without drawing on any of their cash or debt facility. If the gold price stays elevated the only thing they will need to fund outside their operating cashflow is their annual tax bill. The other thing they could consider is doing a JV as a majority shareholder- maybe 70/30%. Surely a partner would be willing to pay a premium to be part of McPs. Although having a new Environment Minister would help in all of the above.
RRL Price at posting:
$4.12 Sentiment: Hold Disclosure: Held
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