Dude, he comprehensively dumped on the decision to buy at the price RRL paid. He's only mildly positive & reluctant point was that it might work out if the gold price increases substantially but even if it does, it's no master stroke because as he (and I have been banging on) points out it was dilutive at a capital raising at RRL's share price at 4 year lows. The returns are very poor at the current gold price, barely reasonable at US$2100oz & ok at $US$2300oz. If the gold price rises, RRL's share price will have gone up far more than before the transaction because of the value per share destruction now. Forget EVN, nobody will touch this now even at $3 because it now isn't worth more than that unless McPhillamys gets approved, that's a big "if" too on environmental/water grounds. Listen to the narrative of the YouTube post, it's spot on and exactly what I've been saying since the announcement. The share price is still heading south.....$2.55 today and not a single broker has been positive on it. Time to stop "hoping" & get angry at the RRL executive that put this disaster together. Your holdings are down 25% now from the announcement and still falling. The market is telling you something. Contrarian stances have their place, so too recognizing you're in the path of a train that's smashing you. Get real and get angry because what was a great company primed with value & potential has been decimated.
RRL Price at posting:
$2.60 Sentiment: Sell Disclosure: Held
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