Easy decision yes. If ever you see a Goldminer Hedge and then distribute the earnings from that hedge into dividends. Run away!
ASX gold miners history time, Yay, joy Post #:39975726 If we ascend the ASX Goldmining list 13 years ago. You will see that RRL was the penultimate. Second only to Newcrest. Really that hard to imagine these days, I know.
Part of the reason RRL fell from grace is because of the dividends it was showering shareholders 2012. Then came a low gold price environment (nadir 2015), instead of exercising a little delayed gratification and cutting dividends, it hedged and gave the proceeds out as dividends. Production issues here and there, it came to a point of only really keeping its head above water.
Nowadays NST takes that spot! And credit to RRL they have gained a lot of lost ground. Since I wrote that letter in 2019 things actually got worse (much worse) before it got better. Still, RRL is nowhere near its former glory.
Hedging, Shareholders expectations, Gold price downturn etc... Invest in a company that can navigate the vicissitudes of the gold industry.
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Post #:39975726 If we ascend the ASX Goldmining list 13 years ago. You will see that RRL was the penultimate. Second only to Newcrest. Really that hard to imagine these days, I know.
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