RRL 3.72% $1.81 regis resources limited

Awesome work.it all seems reasonable, and whilst prices for...

  1. 2,407 Posts.
    lightbulb Created with Sketch. 1606
    Awesome work.

    it all seems reasonable, and whilst prices for construction costs have gone up and stayed up, I think there are also a couple of positive mitigating factors.
    - the operation is only 27m / 37 KMs from Bathurst, which is a major regional centre and just 3hrs / 260kms from Sydney. I'd assume it is easy more sustainable from a workforce perspective as there is no FIFO ($$$) and you could go home to your family each night
    - there are no mandatory vaccination requirements in NSW unlike WA and I would presume unless the company has a self imposed policy of mandatory vaccination that there would be an eager workforce of both vaccinated and indicated people. Interstate travel is also opening up.
    - steel has gone back up a lot (40%) since it crashed last year, and whilst it hasn't gone back up to highs yet, the impact of the high price of steel on the construction costs were raised at the diggers and dealers conference. Hopefully the company took steps to capitalise on this during that dip and bought some steel futures at lows or something (surely by now the company understand the power and importance of hedging and hedged at least part of what they need).
    https://hotcopper.com.au/data/attachments/4165/4165621-1dd271f67cfe5c9c3076ec4b4ad2a8f9.jpg
    All in all, it's still looking like a compelling project.

    I asked the question on here some time ago, and I was told the ground around there is quite rich and there is also potential for an ore reserve increase with additional drilling. Please note that I did not validate this claim, so take this with a grain of salt.

    Unfortunately the way is still going, and unlikely to be resolved anytime soon based on my understanding of Russia's demands, and inflation isn't coming down anytime soon, which means we also can't underestimate the impact of soaring fuel prices will have on AISCs.

    At least this is offset in part by riding gold prices (as in it has gone up, but it has also dipped from highs, but other costs haven't really dipped relatively speaking)
    Last edited by thecrabpest: 12/03/22
 
watchlist Created with Sketch. Add RRL (ASX) to my watchlist
(20min delay)
Last
$1.81
Change
0.065(3.72%)
Mkt cap ! $1.367B
Open High Low Value Volume
$1.77 $1.81 $1.74 $14.89M 8.371M

Buyers (Bids)

No. Vol. Price($)
1 27309 $1.81
 

Sellers (Offers)

Price($) Vol. No.
$1.82 128379 6
View Market Depth
Last trade - 16.10pm 20/06/2024 (20 minute delay) ?
RRL (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.