Paying off debt strengthens the balance sheet and improves the cashflow immediately. According to the cashflow statement on 31 Dec 23 accts RRL paid $11.6 million in interest for six months (so around a $23 million expenditure if annualised). My question is with major capex needed in the near future to boost reserves and sustain positive cash flows and $300 million in existing bank debt should RRL be really considering buying back shares? For me it's a definite no - although I can see the temptation with what we consider is a low share price.
RRL Price at posting:
$1.72 Sentiment: Hold Disclosure: Held
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