It would take years to move. I don’t think a contingency with a modified McP helps.
However, I agree it is the role of management to get results and failing to get McP done in 10+ years is ultimately on them. Unfavourable factors are everywhere, management needs to navigate them.
As I said elsewhere, I think the worst thing about this ruling is how much it hides managements failings over the last several years.
To buy Tropicana for $0.9B at an implied gold price of $2000 and then have a market cap of $1.3B three years later with gold actually at $2500 is, in my opinion, a masterclass in share price destruction. In the same time, Capricorn’s share price has 3x and their market cap is almost double Regis but they still only have 1/4 the revenue.
I hope that this McP decision is a wake up call but I’m not holding my breath.
RRL Price at posting:
$1.77 Sentiment: None Disclosure: Held
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