The continued selloff is most likely because of what is already known to the market:
McPhilly's is likely going to be dead on arrival, capex figure far too burdensome (especially given RRL's existing debt)
With their long-promoted growth project likely gone, they're now having to pump Duketon North/South and Rosemont as "Underground Growth" whereas in reality it's just replacing depleted ounces.
The announcement didn't give any specifics and just ambiguously claimed that the spend would be "value accretive across a range of prices". This from the same management team who decided to wait until gold was hitting fresh ATH's before closing out their hedge book at a cost of $98M - not sure they understand what "value" looks like
It's no surprise to me that since 1st May, short positions have increased from 1.22% up to 3.27%. If you wanted to hedge your long-gold positions elsewhere with a sector underperformer, Regis is where you come.
RRL Price at posting:
$1.80 Sentiment: None Disclosure: Not Held
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