Cheers Nord, as always I appreciate any vids you provide, even...

Cheers Nord, as always I appreciate any vids you provide, even if I am a novice in regards to charting etc.
All good about the volumes etc. I am hopeful that there is a goodly amount of accumulation taking place, now that the large seller has left (sold its last shares it got for the McPhillamys project sale which I will talk about below) it should start to move higher. The market will start looking at FY2016, which will IMHO be a much better one than FY2015.

From time to time I get a chance to really dig deep into a stock. RRL ticks a few boxes for me right now. Its being ignored by the market, had some issues with weather and grade (interlinked largely) and has not quite met its targets production wise.

You only have to look at the 3 plants it runs to see that they have yet to really hit full production, i.e they should be able to produce 400k ounces with all plants at capacity with ASIC costs below AUD $1000.
To some extent I agree that RRL has not kept up with the likes of NST to shore up its growth profile, but its McPhillamys project (which it bought back in 2012, with script, luckily- as they over paid haha) has some surprisingly good numbers. Especially when it has not in any way shape of forms been fully drilled out.

From what I have found, they could realistically build a 4mtpa plant and produce 120-150k ounces per year with a similar low ASIC of under $1000 AUD (the project is on the East coast and near main power, so a major advantage compared to many mines). RRL have a proven track record for building mines. Their Garden well mine cost them $110 million to build a 4mtpa plant, which seems extremely cost effective, considering the plant is capable of 5.3mtpa. The resource even at a cut of grade of 1g/t is 1.9 million ounces. Or, more likely they will simply produce from the higher grade central lode. In any case, McPhillamys is still a way off, so... what might RRL do. I have been starting a small conversation on the NST threads about this topic. I think because RRL are experienced and proven at building mines, they will buy into 1-2 projects (small caps hold them currently) in W.A that are all but at PFS/DFS stages in the near term. With capex below $100 million and better grades than their current projects. This will enable them to have a good 2-3 years of growth with minimal capex and more importantly surety of growth.

While its not as fast an expansion as NST, its a prudent way to grow without any large capex requirements.
Its a shame its hedges are underwater, but.. in the end they are still going to make excellent profits at $1425, and they have some flexibility as to when they use them.

Hard to believe that in years past, RRL paid out $0.15, or $75 million in dividends in just one year. Could happen again...