Can they go broke
No.
That's because Ramelius can easily meet its commitment to deliver the 272000 ounzes thru to 2022 because it has 4 producing mines now and by 2022 should have 5 and the profit margins on those ounzes [ sold at average $2015 per ounze ] ensure their capacity to deliver.
But I believe the market punishes Ramelius for an overly conservative hedging strategy. I dont call it a daily discussion between the CEO and the CFO about their forward sales intentions a hedging strategy .
I give Ramelius a big fail for 1.the evident lack of opportunism and 2 its failure to enunciate a policy that locks in profits into 2023 and 2024 .I'm told this is because the bank syndicate wont let them commit this far out. They clearly need a new bank syndicate ...and a new CFO.
Last week Ramelius could have sold gold forward into 2022 and 2023 at $2700+. Maybe they did!
If such a decision was taken on say 10% of its forecast production in those years , let;s say 30,000 ozs then gross profits of $40million+ are locked in . This is sufficient to maintain a decent dividend to shareholders whilst ensuring that adequate funds are available to meet necessary mine development for future production .
You could contact the company for an answer...don't expect an intelligent response.
- Forums
- ASX - By Stock
- RMS
- hedging
hedging, page-2
-
- There are more pages in this discussion • 140 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add RMS (ASX) to my watchlist
(20min delay)
|
|||||
Last
$1.99 |
Change
-0.010(0.50%) |
Mkt cap ! $2.274B |
Open | High | Low | Value | Volume |
$1.97 | $2.01 | $1.95 | $4.089M | 2.061M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
7 | 118873 | $1.99 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$2.00 | 7561 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 93500 | 1.990 |
1 | 7735 | 1.985 |
2 | 12235 | 1.980 |
2 | 12791 | 1.975 |
1 | 7735 | 1.970 |
Price($) | Vol. | No. |
---|---|---|
2.010 | 22815 | 3 |
2.020 | 7487 | 2 |
2.030 | 7437 | 1 |
2.040 | 11935 | 2 |
2.050 | 36185 | 4 |
Last trade - 16.10pm 24/05/2024 (20 minute delay) ? |
|
|||||
Last
$1.99 |
  |
Change
-0.010 ( 0.79 %) |
|||
Open | High | Low | Volume | ||
$1.97 | $2.01 | $1.95 | 487635 | ||
Last updated 15.59pm 24/05/2024 ? |
Featured News
RMS (ASX) Chart |