RRL regis resources limited

2.23%

$4.39

Regis never needed this if managed properly at the time. It was...

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Zardoz

583 Posts.

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28/05/21

10:41

Post #: 53481524
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Originally posted by Sequoia: ↑

Saracen undertook massive hedging to buy their half of the superpit. They bought the super pit at much lower POG. Over the Top hedging is generally a function of banking covenants. This was the case with Saracen.

I don't know if RRL undertook more than years 1.5 years of production to secure fundng.... anyone here such a long term owner to know the answer?

All things equal a typical hedging policy is 30-50% hedging of annual production rolling, to take it out to more than 1.5 years tells me they did it to build the company on the back of funding a company generating asset, as they did with Sarecn.

All speculation........... but my simple thoughts are excessive hedging is a sign of debt covenants to secure a future instead of dilution.

Which brings us to t he question, is diluution better than excessive hedging?

My answer to that is depends on the direction and price of gold. I think this time is better......debt increase was minimal - 20%, supported by 20% cash - cash on hand basically marries new debt. The cap dilution was a future (POG) proof strategy to avoid additional hedging.

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Regis never needed this if managed properly at the time. It was the flaw in the old teams management. Anybody know where it came from?
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(20min delay)
Last $4.39		Change -0.100(2.23%)		Mkt cap ! $3.316B

Open	High	Low	Value	Volume
$4.47	$4.53	$4.37	$16.81M	3.793M

Buyers (Bids)

No.	Vol.	Price($)
5	51252	$4.36

Sellers (Offers)

Price($)	Vol.	No.
$4.39	7201	1

View Market Depth

No.	Vol.	Price($)
2	4000	4.350
4	7325	4.300
1	1174	4.270
2	1435	4.250
1	2700	4.240

Price($)	Vol.	No.
4.420	5266	1
4.550	1000	1
4.570	222	1
4.580	6000	1
4.610	180	1

Last trade - 16.17pm 27/06/2025 (20 minute delay)

RRL (ASX) Chart

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