I had a chat with the RRL CFO this afternoon (very professional...

I had a chat with the RRL CFO this afternoon (very professional in getting back to me promptly). This is my take (no definitive disclosures)

1) The company is very confident that McPhillamys will be approved. I agree as it would be a foolish decision to knock back such an economy enhancing project. I have little doubt the approval will come.

2) It appears that financing the new project with debt is the likely course of action. If this requires POG/margin protection by a bank this can be achieved through instruments that do not give up all the POG upside. I hope that other shareholders continue to drum this point home and the company listens. The current situation must be a good lesson.

3) Like most gold miners seem to, RRL does not take a position on the direction the gold price will go. My analogy to this is my view that the average football club member can see a shite player and we often wonder what the Club sees that we don’t? I think mining executives would be well served by following the likes of Schiff, Rickards, von Greyerz, EB Tucker & Mike Maloney etc. I often believe that us minnows know more about the price of gold than the movers and shakers in the ASX Gold space. I get the impression that the existing hedge deadline will be pushed out until the hedged ounces are extinguished slowly.

4) The dividend is not set in stone, however, RRL has set a dividend expectation so my feeling is that it will continue as it would be a Shareholder PR disaster to cut the dividend now.

I would be very happy if the company got rid of some hedged ounces soonish, however in the big picture, I sincerely hope they do not implement a new hedging disaster as part of the McPhillamys project financing.