They purchased McPhillamys for A$150m in 2012, when the POG was ~US$1,650.
Then they spent money improving the JORC resource and defining an ore reserve. They said then, that they expected the resource drilling to take 2 years and another year to arrive at the DFS. Nine years later here we are.
There's a YouTube video from Jul20 with Jim Beyer mentioning progress on McP ... and expecting impending approval.
I've invested in RRL (average price $1.84 now) without applying any value at all to McP. I still think that A$2.60 is the appropriate share price.
IMHO, if McP gets approval, the RRL share price should double. CapEx of A$300m to provide additional production of 250,000ozpa. If Tropicana is worth A$903m for 130,000ozpa (and I believe it is ... especially at the current OzPOG), then McP must be worth upwards of A$1.5b (double the 903m, less CapEx).
I would be very happy to hear approval of the McP DA.
The water pipeline from Lithgow seems ... fanciful. The NCM Cadia dam fiasco lingers. Here's hopin'.
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