I would be very surprised if RRL could not access low cost finance, without ridiculous hedging covenants, based on a 500k-600k production profile. The company also has a current cash balance to draw upon so this is not high risk lending by any stretch of the imagination.
From memory RMS got a $200k loan facility (and SBM?) when Coronavirus hit us as a safety net without draconian operating restrictions.
Although the dividend is not an official policy it is an unofficial policy after so many dividends paid. Not only is it an attractive reason to invest but a good reason not to issue new shares so as to manage the future dividend cash outflows.
RRL Price at posting:
$3.59 Sentiment: Buy Disclosure: Held
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