Newmont, RRL's largest shareholder with ~14%, has today announced the acquisition of Fronteer Gold for $2.3b.
A quick glance at Fronteer shows a company of similar scale to RRL, although nowhere near as advanced. Fronteer is probably still at least 3 years from production with a target production rate of ~300,000 oz pa. By contrast RRL is already producing at 100,000 oz pa and by my calculations should reach ~330,000 oz pa annualised production by end 2012. RRL's resource inventory is nearly identical to Fronteer with excellent growth potential.
Based on the Fronteer transaction I reckon RRL is worth $5 per share if it goes into play.
Newmont, RRL's largest shareholder with ~14%, has today...
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Last
$1.84 |
Change
0.025(1.38%) |
Mkt cap ! $1.386B | |||
| Open | High | Low | Value | Volume |
| $1.82 | $1.84 | $1.80 | $4.456M | 2.446M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 10918 | $1.83 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.84 | 44348 | 5 |
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| Last trade - 16.10pm 09/07/2024 (20 minute delay) ? |
| RRL (ASX) Chart |