Tropicana does reduce ROE and ROA significantly, especially on a consolidated basis and if they correctly account for a finite life of the asset (based on the fact that reserves can be calculated against production figures). FCF and EPS (expected) look splendid though and of course the whole Tropicana deal is based upon the assumption that gold price will stay where they are or go higher (north of AUD 2.300). Well today they got hit with fallen gold prices. It is quite hilarious to see that people still look at feeble interest increases on the US bond market when inflation rates are much higher than the interest. There has been and will be a negative return on bonds for years, should be easy enough to grasp.
RRL Price at posting:
$2.53 Sentiment: Buy Disclosure: Held
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