Ann: Mineral Resource and Ore Reserve Statement, page-8

Hey Crows, good question, though sadly, RRL is at best on par with its peers in regards to reserves (I am attempting to add a little humour into this, does RRL have any real peers... with a 500k p.a. production profile, but... not make any money? Def not a peer of PRU for example). Sadly.. it is does not stack up at all in regards to the MRE cut-off price.

But... my understanding of why they use such a low price is partly to do with the hedging, partly taxation/valuing their assets, partly to do with the nature of their open pits (low grade and reducing all the time) and the cost of their production), plus... they aim to be conservative.

This is from GOR and CMM, arguably RRLs peers in regards the size of their plants. So, no, RRL is not a lot under its peers, in fact, it is about average.





Where things get really interesting, is what price RRL used for the MRE, when compared to its peers.



Here is GORs MRE. Uses a Gold price in AUD, almost 18% lower than RRL. THAT.... is a lot of potential ounces that could be taken away from RRLs already shrinking MRE.



CMM is also lower than RRL, basically 10% lower.



I know many view RRL as cheap, and... it's hard to argue that its not, but.... it's cheap for a reason. Without Tropicana, I really do wonder what RRL would be valued at. Perhaps even less than WGX...