Well.... I can be upfront and say well done to RRL. They have proven me wrong consistently to date. Well done to holders who picked anything close to the bottom with RRL around $1.60. It goes to show you need to keep re-assessing a company, not on it's past, but on it's future too. The repayment basically closes the book on the hedging disaster, it even goes some way to mitigating the RRL production profile reduction to around 320-350k p.a for the next few years. I still have concerns about the reserves, but... in this high price environment, the cash generation is going to enable RRL to start paying dividends again (though I really do hope they are conservative with that... considering their past under investment in the main assets they are producing from).
My paltry holdings in my super is why I have a 'Held' position, so I am annoyed at myself for not better recognizing the upside RRL had not so long ago. The sector is really starting to show legs now, with many of the 'good' producers generating consistent, large FCF.....
Well done to holders (hopefully I have learned something from this missed opportunity).
RRL Price at posting:
$2.90 Sentiment: Hold Disclosure: Held
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