Ann: Production Update with Guidance Maintained, page-21

A sudden 15% drop in the Gold price even for a short period (not expected btw) could make closing the hedge book an absolute disaster, it was a gamble on the Gold price, so far they're winning the bet, I expect they'll continue to win the bet but as a manager I would not have made that choice personally.

When you run a mine you SELL (hedge) product when the price is at record highs and BUY (unhedge) when prices fall under the AISC, if it's not profitable to dig it up then DON'T!

That should be the position of any producer that doesn't sit within the the top quartile in cost base per ounce which RRL is most certainly not.

If you're in that top quartile same strategy only instead of buying back hedge books at lower prices you buyout companies at a huge discount with lots of ounces in the ground, where you can use your massive liquidity position to scale up the operation to lower cost per ounce and repeat for the next cycle.

Having said that this is highly sensitive to the Gold price, a rising Gold price from here will make RRL multibag whilst NST or EVN will appreciate nicely but 1-2x is about the best they'll do in the short term.

I'm expecting the AUD Gold price to push towards $5000 in this current bull cycle, I'll be out of all my RRL by then but still likely hold most of my EVN and NST shares.

RRL is absolutely not a long term hold IMO, just a higher beta play on the Gold price to generate higher short term returns without using leverage.