Just having a look at reports I'm also guessing that the "soft Sept Qtr" maybe also worrying and maybe the comment about appropriate level of forward dividends ( ie people think they are ceasing dividends)
Anyway it looks good to me as 2022 turn around story.
One other interesting comparison was just looking at PRU so PRU has way more shares about 1.21+ Billion and SP of 1.4 = MC 1.7 Billion AISC for PRU for next year is expected to be 1000USD per ounce ( although this is the number for H1 FY 2022 from their results ) Target for PRU 2022FY I think is also 500K but PRU also is operating in Africa so should have some risk factor for the SP.
Then look at RRL 750 million shares on issue with yesterdays close MC is 1.5 Billion. From the recent FY21 presentation you can see they have forecast whole 2022 FY with AISC of 1320 AUD per ounce at 0.72 USD = 950 USD per ounce. Like with PRU our target is 500K. But RRL whole operation is in Australia.
I'm not saying PRU is bad but on risked basis EPS growth will be bigger and less risky( geo risk not operational delivery which to be fair PRU have done well in Africa ) for RRL.
It seems good value and when sentiment changes toward the sector I think RRL will benefit especially if the operational delivery is inline with their forecast. ( Note that cost containment and skilled people resources will probably continue to be issue for at least next 2 qtrs).
But assuming they hit target midpoint for costs and gold price is flat in AUD ( ie 2400 per ounce) it means operating nett cash flow = 535 Million AUD or about 71 cents per share . Usually 5 multiplier is very conservative = 3.75.
Cannot see it staying here for long.
RRL Price at posting:
$1.98 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)