Ladytradr@ I’ve taken the liberty of borrowing your chart of RXL and superimposing the price of gold in Australian dollars…
I haven’t followed the fortunes of RMS too closely, but I do remember them paying a bit over $200m for Spectrum (Penny West) which was at a 50% premium to the SPX SP at the time (early 2020)…Many punters thought they’d overpaid but RMS turned this into a huge winner. So as you said in your other post, they are going to look stupid if they haven’t been running a ruler over this…
Direct comparisons are flawed (apples & oranges etc etc) but Penny West reportedly had circa .35Moz of gold, RXL reporting 1.5Moz and counting… price of gold up up and away since 2020 (and no sign of the world losing its appetite any time soon).
Imo, RXL heavily discounted because of 1. split ownership with VMC (rectified), 2. past poor management (rectified), 3. ore type difficulties (mostly a beat up) and 4. underground mining difficulties (also mostly a beat up (see RMS))
Looking for a rerate.
GLTH
RXL Price at posting:
23.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
I haven’t followed the fortunes of RMS too closely, but I do remember them paying a bit over $200m for Spectrum (Penny West) which was at a 50% premium to the SPX SP at the time (early 2020)…Many punters thought they’d overpaid but RMS turned this into a huge winner. So as you said in your other post, they are going to look stupid if they haven’t been running a ruler over this…
(20min delay)