The problem is the dividends needed to account for all of the additional shares at the time of being declared, but without much of the upside of Tropicana production.
Forward looking, we should have a PE of around 6 from today's price to when McPs comes online.
Yes, there 754,208,202 SOI (as per https://www.marketindex.com.au/asx/rrl) but we are looking to produce 700k oz of gold with McPs, and we "should" be able to fund that with cash and debt - so no additional shares.
There is also the hedge book (that this management team have inherited) coming down every quarter, there will be additional funds to be distributed or re-invested.
If we can maintain a margin of around $1000/oz, we should be in a very strong position moving forward.
Admittedly there is a lot that could go right or wrong in the time between now and McPs coming online, but operations have been strong and although there is a lot of criticism of the Tropicana deal, hopefully there won't be any more "own goals" from management.
I personally think Tropicana will turn out to be a master stroke. Especially if POG goes up and reserves get a big increase.
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