Agreed. Not great for the shareholders who stumped up for the raise but the company would have been in a world of hurt were it not for the low cost production at >$1400/oz incremental margin (given the hedging was all on balance sheet pre Tropicana).
As to hedging I'd point out that while there is 6 more quarters of pain left we are finally approaching the light at the end of the tunnel on this debacle.
At A$2,750/oz FY25 will see FCF increase by c$142m pre-tax from FY24 if RRL can maintain production. If RRL can just keep it together until then we could find ourselves in a position where they have an approved asset ready for development and are generating enough cash to be able to fully fund it with project debt and corporate cashflows.
RRL Price at posting:
$2.22 Sentiment: Buy Disclosure: Held
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