You're hoping the gold price falls to ease the pain of hedging rather than taking the medicine, paying the hedging back (all the while at a huge loss) and moving forward into large sums of positive cashflow. I don't really understand your statement and perhaps you do not fully understand the situation.
Hedging @1500au an ounce - AISC above $2000au an ounce (= minimum $500au loss per ounce produced and paid back). Gold @3000-3100au an ounce. At the current gold price once hedging is paid back RRL will bank an additional $150,000,000 per year of free cashflow (effectively profit I'd argue) - that is huge. FY23 RRL made a loss (24m)....
Even if the gold price cools (which I don't think many predict it will) it makes no sense to delay paying this horrible hedge back ASAP. There is zero chance the market will respond negatively to such news. Long-term RRL holders are owed some positive surprises.
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You're hoping the gold price falls to ease the pain of hedging...
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$1.67 |
Change
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Mkt cap ! $1.261B |
Open | High | Low | Value | Volume |
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Buyers (Bids)
No. | Vol. | Price($) |
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3 | 46682 | $1.67 |
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Price($) | Vol. | No. |
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$1.68 | 17359 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 5994 | 1.665 |
2 | 6114 | 1.660 |
2 | 7213 | 1.655 |
1 | 5813 | 1.650 |
2 | 8313 | 1.645 |
Price($) | Vol. | No. |
---|---|---|
1.680 | 5813 | 1 |
1.685 | 8362 | 2 |
1.690 | 5813 | 1 |
1.695 | 7845 | 2 |
1.700 | 19740 | 3 |
Last trade - 16.10pm 02/08/2024 (20 minute delay) ? |
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