Took an entry to day in this unloved company as it looks like it is turning around. I did pick the bottom and have been watching it for a couple of weeks trying to work out why it has been sold down so much on no obvious reason. I have also had a beating with all my other stocks so not too keen to jump into another falling stock. A few reasons have been thrown around , however the drop has gone far past the justification on any of it.
From my research, the market cap is the similar to SLR and GOR, however production is double theirs with a lower ASIC. Although hedging is at a low price, it is only about 20% of production which is similar or less than other producers. I have not come across any production hicups that some of the others have encountered and if the paid too much for Tropicana , then that has also been more than factored in the price.
Although I don't take much notice of broker data, , it is on the top of the brokers undervalued stocks with a price of $2.90 with a 4.5% dividend.
All the stars are lining up with an increase in gold price and investors returning to risk adverse stocks. Although I do hold other gold producers, this one seems to have the most potential upside imo.
Good luck to all holders
RRL Price at posting:
$1.91 Sentiment: Buy Disclosure: Held
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