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clock Created with Sketch. 30/06/22
20:19
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Originally posted by Jrowl1:
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I don't think they are making money or really making money, even if they post a $100 Million profit, you have to calculate the decline in resources expended to produce that $100 Million profit and maybe they were expecting $300 Million profit, it's not like a fish&chips shop which orders ingredients, combine them and then sell at a profit, every oz rrl produces gets detracted from their reserves, they have to get a big return on that because they have to spend money again to replace the reserves for the company for it to maintain value and even if they show they made some money the reserves will tell the story with the decline, no they need to be making a lot more money but then why bother increase reserves when there is little profit and hence the decline in shareholder wealth. As I said, it's not just rrl, it all the Australian Gold Mining Industry, what is happening is a disaster, it's just the reality as I see it I am sorry.
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The financials are indeed miserable now. The costs are through the roof due to inflation and pandemic-related issues impacting staffing.
(20min delay)