Fallback to CR price was to be expected given the high degree of dilution (30%) and amount being raised. Like sircorp, I am looking for $2.50. Any weakening in the POG will help it get there. The future of the SP will no doubt depend on progress with McPhillamy's although even without that, the overall valuation of the company is not excessive at $3.20 given total production and reserves with Tropicana on board. It is not as though Tropicana is not expected to grow. After all, look at higher valuations on other companies like GOR with 29% of the production and 40% of the reserves for RRL post Tropicana. In the long term, I think RRL will hold value and pay dividends. How long for the SP to get back to where it was, I cannot say but once the share issue is out of the way and things settle down, the SP should pick up. I hope to buy more, either from my rights or at market if markedly less, and then sit back and wait. For anyone not already invested I would think it is a buy if you are not impatient.
RRL Price at posting:
$2.70 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)