Well, they are getting off by seeling 20% of production into the hedge book. More than 25% of production in FY 2020/2021 (100k oz). By that they reduced possible turnover and EBT by almost 100 mio. AUD but at the same time reduced hedge book by over 25%. So they have been doing what yout think they should be doing albeit not as fast. They also diluted the hedge book effect somewhat by buying in to more gold production via Tropicana.If (!) your thesis of a rising gold price is correct they also would not have overpaid Tropicana. Via Tropicana aAny AUD 100 increase in gop gets more than 10 million additional EBT and an additional NPV (depending on factored in multiplier/interest rate) of 60-80 million into the books. And regading managenemt on studying the anuual reports one will find out that the hedge book was already there when current CEO climbed on board. But it is quite all right that you don´t own the stock. So others were and are able to buy at lower sp.
RRL Price at posting:
$2.55 Sentiment: Buy Disclosure: 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)