Interesting analysis from those brokers. What I always wonder is why they do not give any details to how they arrived at their numbers, i.e. production or gold price expectations or expectations regarding AISC. However I get a slightly lower EPS for YF 21/22 of around 37 cent/share if calculating with the following figures: Gold price (average selling price outside hedge book) AUD 2.500 Ounzes produced and sold: 500k oz (including Tropicana) Selling against hedge book: 100k oz AISC AUD 1.400 Non-sustaining costs (CAPEX/exploration): AUD 100 million
When calculating with the same figures but an average gold price of 2.700 AUD EPS would go to 48 cent.
AUD 2,60 /share seem to be a bargain in any case (in any case except a substantial decline of the gold price or a substantial increase of AISC). A surge in exploration costs might also lower EPS but would gain value in the longer run. So I bought some more today.
But again: Always buy and sell only upon doing your own research and calculations!
RRL Price at posting:
$2.56 Sentiment: Buy Disclosure: Held
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