assuming $1.05b cost and 2 Million ounces over 15 years (they...

assuming $1.05b cost and 2 Million ounces over 15 years (they say this is the project life on the website). If you wanted a compounded 10% return on $1.05b over 15 years, you'd want roughly $4 billion in equity generated by the end of the 15 years (or a profit margin of $2,000), including land rehabilitation. This calculation, I'll admit, is wrong as it is oversimplistic and doesn't account for the value of earlier returns, but it does give an idea of how far off being a quality project McPhillamy's is as who takes on a project for an average return that involves a level of risk. RRL management, lol.

This is why I think the market has reacted so badly to that announcement despite the increase in the gold price. On a more positive note, RRL, as it is now, is a quality gold miner. I'd just like to see the capital costs requirement for McPhillamy's be a magnitude lower. At the end of the announcement, it looks like Jim knows there needs to be some work in bringing down the capital requirements, but management, for whatever reason, seems content with low NPV returns from projects lately. (which is bad, especially considering the risk-free rate globally is high) Let's hope this changes

DYOR