* Hedging (even though it is a very known issue and RRL are doing a good job at mitigating it with their slow selling into it). * The company did not increase its dividend even though it is likely to have a very good influx of cash in 2020. Perhaps they are saving capital for when McP finally gets the go ahead (permitting is clearly a nightmare due to NSW gov...) * McP has not progressed as planned, as it was originally planned to be in production this year...... 200k p.a of production sitting and not producing. * RRL is starting to head U/G for the first time.... perhaps some small element of risk? * The stock is boring... there I said it. They have only recently started to really explore their current tenements. * ASIC has increased when for many years they had the lowest ASIC in the mid tiers. * Management - after the failed tilt at CMM, I feel the 'market' has decided that RRL, whilst a proven producer, is not the same pedigree as NST/EVN/SAR.
That being said, I bought a few today. Probably buy more in the coming weeks. The dividend alone is enticement enough, yet... with POG now hitting A$2500. Even with their crappy hedging, they are going to make a huge amount of money. Plus, their production is going to incrementally increase over coming years, towards 400k p.a. I also like that its under-performed its peers, not because of production issues, but again, because its boring. I am ok with boring when the global headwinds seem particularly turbulent.
RRL Price at posting:
$4.50 Sentiment: Hold 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)