I tend to think it's a bit more than the hedgebook. Sure that certainly doesn't help... from what I've read it cost them ($35M) in this June quarter, ($29M) in the March quarter, and ($27M) in the December quarter. However to me the main uncertainty is the $300M debt due next May. Yes they've got $243M cash and bullion but that's really more like $68M once the FY24 growth capital, McPhillamys spend and exploration amounts are deducted (taking the top end of their estimates for each totals a spend of $175M). However as @convexity points out here (https://hotcopper.com.au/posts/69212017/single) GS have the view that FCF will get them through - they put FY24 final position at net cash of $110M, although consensus view is very different with RRL in a $10M net debt position. GS also say "RRL engaged constructively with its lenders in respect of a deferral of the A$300mn syndicated term loan facility, which currently matures on 31 May 2023, and will provide the market with an update on these discussions in due course".
Perhaps that news will give the share price the bump it needs. Cheers
RRL Price at posting:
$1.61 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)