Strongly in-favor, if shares are bought just during lows.
At anywhere near current gold prices, Ramelius is rapidly-generating free cash. As previously noted, mining 270k oz/yr at $1280 AISC, Ramelius could buy themselves back in 4.2 years. That figure includes hedging, assuming it continues at next year's rate (46% of production at $2215). While the 4.2 years figure is overly-simplistic, ignoring taxes, the time value of money, possible improvement in production and costs, and other factors, the figure does illustrate that Ramelius would be making a good investment if it bought shares during this low.
FWIW, similar calculations for SLR give 5.8 years (5 without hedging), for SAR 9.6 years (7.8 without hedging), and for Kirkland Lake 9.6 years. KL's figure assumes the Swan zone continues forever, which is certainly not a good assumption at present. RMS's buyback period would be 3.7 years without hedging.GLTA
Is a buy back a silly idea?, page-2
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|---|---|---|
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