Chart request - RRL, page-53

" IMO RRL's poor hedge position made Tropicana more valuable to them than others and from their perspective was not the terrible deal seen by the market". That logic means RRL would/should have the capacity to overpay market value for any proven & producing assets.....somehow that doesn't gel. They've doubled down & lost more again with the gold price moving against them by overpaying. Overpaying for any asset is a mistake, it's contra to any notion of value investing. Getting themselves into a mess with the hedges doesn't from a 'value' perspective then give them carte blanche to go out and pay over the odds for any asset. That's value destructive & you've seen that here since the announced purchase. I'll give you an example to contrast value add & value destruction....contrast what RRL paid...just shy of a $1 billion for Tropicana all up....compared to a new acquisition for Capricorn (and I'm not plugging it though I do own it) CMM purchasing a 2.1million resource mothballed mine (open) with some infrastructure & current mining permit for just over $50million. It'll take around $180million for a new mill so for $230million outlay they'll be producing around 120,000 ounces a year in the bottom cost quartile for a long time. The CMM share price went up 25% & has held since. That's value accretive, not the value destruction we've witnessed with Tropicana which was a high single digit return at a gold price of US$1900 (eye watering expensive for gold acquisitions in Australia historically). It made sense at gold at US$2050. At US$1750, it's a disaster & that's what you get when you overpay for any asset when you have no control over the price you receive for your end product (unless you hedge again). Do the numbers, they do not lie. Fingers crossed for a sharp rise in the gold price because otherwise, this deal was outright folly. The large increase in shares on issue has permanently impaired ROE even if the price of gold goes up. The share price will go up with any increase in the POG but theoretically won't go up as much now that ROE has been decimated. It was a very profitable exercise for IGO, they got a great deal & the bankers that stitched the deal together. The people that paid for it were us, the existing shareholders.
Disclosure: still holding some RRL, looking to offload. Holding CMM