RRL market cap approx $1.3 Billion. Cash and bullion on hand of $13m down from $92m previous quarter. That seems ridiculously low for such a large market cap company.
Points from the Quarterly:
Drawing down of working capital facility. Gold hedging under water at current spot gold price. Garden Well gold production lower for three consecutive quarters. Garden Well cash costs increased for three consecutive quarters. Garden Well head grade down for three consecutive quarters.
The company's management and projects seem to be well regarded by analysts and I have been keeping an eye on RRL for a while but I reckon that the current large market cap leaves it vulnerable to macro gold price events affecting cash flow and project execution risk IMHO.
RRL Price at posting:
$2.76 Sentiment: Hold Disclosure: Not Held
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