The issue as I see it. Reported profit is excellent thanks to MinRes contracting work, with the balance sheet telling more of the story. Development costs parked in the balance sheet now total $228m (up $55m for the year) - all of which must be expensed into the P&L at some stage. Lucky Bay revenue has trebled but commercial production has still not been declared. This means that at year end Lucky Bay continues to run below 80% of nameplate for certain, and I’d guess it’s closer to 50%. I’m wary that significant Lucky Bay operating costs have been capitalised while it’s still in this pre-commercial accounting stage.
Big bro has saved this one by funneling large contracting revenue its way, the loan now at $117m and kindly foregoing interest. RDG would be a basket case without it so grossly over compensated mgmt imo. Potential, but quite a hole its dug itself into.
RDG Price at posting:
2.9¢ Sentiment: None Disclosure: Not Held
