This valuation is crazy? I don't know weather to be excited or depressed. P/B of 0.98, price to sales of 1.5. These numbers are crazy town, like 1950/60s stock market crazy, particularly considering when POG is at 1750 at the time of writing and our ASIC of approx $1000 USD, and we have approx 120 mil free cash flow, 220 mil leveraged cash flow, just made approx 200 mil profit last financial year. I don't know what POG analysts are pricing in, has to be sub 1600. If gold actually fell back to pre-2019 levels i.e 1200-1400 which is unlikely, RRL would be even stronger due to at those levels our hedge book would actually pay off and historically we have been one of the lowest cost producers. Also we are 100% in Australia so their is 0 sovereign risk or FX risk. Inflation in Australia is said to be 1-2% compared to 5% in US and other parts of the world and we so far have been quite insulated from rising costs in particular energy costs, which will go up but not as much as in other parts of the world. All gold miners are under pressure, in particular Australian ones lately. But this just boggles the mind. IMO it is algorithm driven that has been, hawkish fed meeting = sell gold, X data = point sell miners and so far retail has not been willing to step in. This has created a crazy valuation in all asx miners, none more so than RRL, who knows where this will end $1.2 would be about 80% off the recent high. IMO RRL has to get aggressive in this market, they have 220 mil, I think they should use it instead of waiting for Mcphilies. Buy some juniors, I know people have mentioned Capricorn before someone like that I, think we offered them 50-60 mil or something, maybe we need to go back bigger. At these valuations it would be hard for juniors to raise capital, maybe look at one who has some debt but good potential assets. I think there are too many asx goldies fighting for capital and I think in this bear market we need to get big or go home. IMO, DYOR
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