Am I missing something? I have been watching RRL for some time now, and I just can't see how it is not undervalued. I really want to load up the truck, but I am just worried there is something going on that I can't see.
Using guidance numbers from 2021 annual report (very rough calculation):
Middle of guidance for tones produced: 487,500
Current gold price (assuming no change in the 2022FY - obviously there will be change but i feel using no change in the current market is actually being conservative): $1,826.60 USD
Exchange rate of say 0.73 = $2,501.10 per tone
487,500 * 2,501.10 = $1,219,284,246 in revenue
Multiply this by the profit before tax % from 2021 accounts of 25.9% gives a rough profit before tax for the 2022 FY of $316,138,515.
At a P/E ratio of 10 that gives a market cap of $3.1b. Divided by the current share son issue gives a price of $4.19.
This doesn't take into account any positive news regarding McPs development approval either.
Anyway, just my 2 cents, I am really, really tempted at such low prices, but I am just worried there is something going on behind the scenes that we don't know about that is keeping the price at such depressed levels.
All in my opinion, DYOR...
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