The market cap of RRL is only marginally higher than RMS at present but the production profile is significantly higher. The relative value of RRL is compelling.
Time heals and that also applies to the hedging position of RRL. At the beginning of FY2023 RRL will be getting close to having half a year of future production hedged. For those that have more than a short term focus this could become a serious cash generating machine in the medium term future.
Although the company is cheap as chips, RRL has an unloved market perception and tends to stick to a price range for periods of time. I last sold my entire RRL position at $2.20 (market value but significantly below my view of intrinsic value) but have bought those share back in this range. I have a feeling that the share price jumping up and and down in a range will be ongoing. For those willing to take a risk you may be able to claw back losses in the past through trading this volatility.
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