I just thought I'd have a punt at guessing the H1 FY14 result. I look forward to others views to create discussion.
I am predicting a net profit between $25m and $45m based on the following: - Gold sales in ounces are up approx 42% (from 103270 ozs to 146525 ozs) - Gold sales in $ may be up around 30%. Unsure of the impact of hedging. However, the average gold price is down around 9% (from $1625 to $1485) - Cash costs in $ are up around 40-45%. - I have the AISC for H1 FY13 at around $950-$1000 per ounce and the H1 FY14 amount at around $1250-$1300 per ounce.
If this profit does eventuate, it will be an excellent result and at around 1/8 of the market capitalisation of Newcrest, to me Regis would be a better value option for investors. Please supplement with your own research.
RRL Price at posting:
$2.28 Sentiment: Buy Disclosure: Held
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