One interesting thing is the impact the hedge position will have on their financing for McPhillamys, which will likely happen in June quarter or early Sept quarter. They'll need at least $250M I suspect. Likely management will be sick of hedging, so they'll steer clear of any debt finance with hedging requirements attached. I don't know under what terms they can get debt without hedging - possibly not that great terms. This may push them towards a large cap raising. So possibly the thing to do is to sell on news of McPhillamys approval, keep just a token amount of shares in case there is a non-prorata retail entitlement, then buy back on market when the cap raising is announced. Of course if McPhillamys is not approved, it'll be under $3 in an instant, with not much you can do about it.
RRL Price at posting:
$3.65 Sentiment: Hold Disclosure: Held
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