Have to agree jman. Yet RRL has included Mcphils reserves for many years... yet they are simply inaccessible!
On other matters, I think the presentation raises some serious issues with Duketon over the longer term (by that I mean, after 2025). The company basically says that FY2026 will only be above 500k+ if McPhils enters production, which then clearly implies, if it does not, their production profile will be decreasing, not because of Tropicana (it has a long mine plan), but because of Duketon.
Then you have the statement that the U/G reserves at Duketon are now being replaced, but... NOTHING about the open pit reserves.... How can they fill the 9mtpa plants with 40% U/G feed? That would be almost 4mtpa from their U/G mines! I also cannot understand their maths.... There is 1.4m ounces of reserves... that equates to 4 years at current production rates.
Also, these reserves are booked from Dec 2021. So in reality, RRL has reserves for CY2023-2025, then... no more open pit ounces. That means at a minimum, they will be closing 1-2 of their Duketon plants. Cutting off perhaps 150-200k p.a. Which... hopefully will be replaced with McPhil.
I look across the sector for value (gold stocks have been brutalized, particularly those in West Australia, and I do view RRL as cheap, but.... will their late pivot to actually exploring for gold, pay off, or will they soon have to start shelving their Duketon plants.
RRL Price at posting:
$1.40 Sentiment: Hold Disclosure: Held
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