Based on the A$ gold price averaging above $5100 in the June quarter I will be disappointed with a cash/bullion build below $175m.
Remember last qtr RRL achieved a cash/bullion surplus of $139 million in the quarter on low production (89.7k oz).
This qtr the gold sale price should be almost $550 per ounce higher than last quarter. So if they generate around 90k oz in sales that’s an extra $50 million in free cash. Using last quarter’s metrics this equates to a cash build of almost $190 million.
But I must admit I have been way off in my estimates in the last couple of quarters- so time will tell.
RRL Price at posting:
$4.39 Sentiment: Buy Disclosure: Held
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