I keep hearing on this forum that the mine being blocked is good for the share price.
Removing the only growth story for the business is not good for the share price.
The bad section 10 outcome was anticipated by some in the market for some time and as markets are forward looking this was helping to keep the share price down. The lack of continued decline in share price is really just because there’s not much more bad news that can happen and gold price is strong.
Any rotation into this sector will bypass RRL as there is no growth story AND there’s no dividend. What investors are going to buy a company that’s making money but isn’t paying a dividend and has proven they can’t invest anywhere?
If RRL does nothing but “cash build” for years the share price will stay flat. They have already announced no dividend. This company has free press at the moment, they need an enticing narrative and “we will do nothing” isn’t one.
RRL Price at posting:
$1.81 Sentiment: None Disclosure: Held
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