Keep in mind that Regis management never stated that they bought...

Keep in mind that Regis management never stated that they bought Tropicana because of their view on a higher gold price. They would have been ridiculed if they did as people would've pointed to the hedge book as evidence that their crystal ball was broken. Regis paid almost 1B including fees to purchase their share of Tropicana. The payback period at $150M per year is close to 7 years. Nominally after that time they have a return on their investment (if you don't include the interest on any debt, the cost of equity capital, or the opportunity cost of locking up a billion dollars for 7 years). Those who think Regis paid too much feel the return is too low for the price paid or is too long-dated. This can change in the advent of good exploration results or a significantly higher gold price but these factors are not controllable by Regis and should have been considered conservatively, or at least neutrally in making their assessment of value.