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RRL, REGIS RESOURCES LIMITED
mullokintyre
post Posted: May 28 2021, 09:43 AM
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In Reply To: nipper's post @ May 10 2021, 08:52 AM

RRL has been one of my worst performing gold stocks.
On paper it looked great - a very low P/E of 7, forward P/E of 8, div yield of 4.6%, annual production just shy of 400k ounces at an AISC of a tad below 1300 an ounce.
With gold prices consistently above 2300 an ounce, seemed like a pretty good deal.
The devil of course, is in the detail.
One of the problems is their hedge book.
Todays announcement that they have "rationalised" the dreaded book, still shows the co committed to 100,000 ounces per year at the miserly price of $1571 per ounce for the next three and a bit years.
So roughly a third of their production is committed to a sell price below their AISC. Thats not a good look.
The recent announcement that the investors only took up 20% of the shares the Company was hoping for in the raising to pay for the Tropicanna mine should indicate to management that there might be a problem. Todays price shows it below that rights issue price, and unless gold rockets to dizzy heights, its hard to see it rising much.
Perhaps the fact that Tropicanna was scheduled to produce 380 to 430 k ounces in 2021 at an AISC of $1,730 to $1,860 made them think it was not really that much value adding for the dollars being thrown at it. Assuming best case scenario of the lowest AISC and highest production, and gold stays at 2450, they would expect to pick up about 80 mill per year from the third share. When they paid 903 mill to get that third share, it does not look so good. It would take ten years just to break even.
Looks like RRL might have to go the way of DCN, PRX and SBM.
Mick




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nipper
post Posted: May 10 2021, 08:52 AM
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In Reply To: nipper's post @ Apr 13 2021, 12:38 PM

Regis Resources has completed the retail component of its 1 for 3.08 fully underwritten accelerated non renounceable pro rata entitlement offer to fund the acquisition of the Tropicana gold mine

The company only received $30 million of applications as part of the offer, representing a total take-up rate of approximately 20 per cent.

Approximately 46 million shortfall of shares under the offer will be allotted to the underwriter and sub-underwriters of the retail entitlement offer.

The company issued 57 million new shares under the offer at $2.70 a share, raising $153.9 million.



.... not a ringing endorsement



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Apr 13 2021, 12:38 PM
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Binding Offer for 30% in Tropicana and $650m Capital Raising



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
mullokintyre
post Posted: Jan 27 2021, 09:12 AM
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Joined in RRL a few weeks ago.
Good quarterly out, with an increase in production, lowering of costs, and increase in cash flow from operations.
I'll take that.
Mick



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sent from my Olivetti Typewriter.
 
jacsar
post Posted: Jan 7 2021, 06:06 PM
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In Reply To: nipper's post @ Jan 7 2021, 05:28 PM

Thanks, nipper, however have loaded up on CAI which if real on IRR will send me to heaven...stay well

 
nipper
post Posted: Jan 7 2021, 05:28 PM
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Regis Resources one of two gold miners in the picks by Bell Potter analysts for 2021; the other was Aeris Resources (AIS)

QUOTE
We continue to view RRL as an attractive, reliable gold producer. Consistent operating margins have been maintained across the business. The FY20 EBITDA margin of 52% is competitive with, or ahead of, key industry peers. RRL ongoing CAPEX is, in our view, an investment into attractive, capital efficient growth options that leverage off RRL's existing infrastructure ... an aspect of its operations that set it apart from many peers. This includes the McPhillamys Project in NSW which has made good progress through the permitting process, is well placed to advance to production, should deliver material production growth and could commence construction during 2021. In our view, the market attributes little value to this asset.

RRL also remains one of the sector leaders for shareholder returns. Its FY20 dividend equates to a payout of $41m and a payout ratio of 43% of NPAT for a 2.9% fully franked yield (at dividend declaration).

Buy, Target Price $5.72.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 


nipper
post Posted: Aug 29 2016, 10:57 AM
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Regis Resources has more than doubled its annual dividend, after revenue rose due to higher gold prices and management repaid all outstanding debt. Regis said its annual net profit rose 29 per cent to $111.8 million, from $86.9 million a year ago. The result also reflected a 6.7 per cent on-year fall in all-in costs at its flagship Duketon operation to $927 a troy ounce of gold.

Directors declared a final dividend of nine cents a share. That brought the Perth-based company's full-year dividend to 13 cents a share, up from six cents in the 2015 financial year.

"The robust cash operating margin has seen cash on the balance sheet build and has underpinned the payment of 13 cents per share in dividends for the year," managing director Mark Clark said. "It is also exciting that our organic growth strategies are delivering opportunities to increase reserves and a higher medium term production outlook."

Regis said its cash and gold bullion holdings rose to $122.3 million at the end of June, from $64.5 million a year earlier. The increase was achieved even as management repaid $20 million of bank debt and made $50 million in dividend payments.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
BullandPull
post Posted: Aug 7 2014, 08:53 PM
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In Reply To: flower's post @ Aug 7 2014, 01:54 PM

Absolutely true, and you are very right, at the moment there are better gold miners! But, i think, and basing this on the temporary nature of the underlying problem(the flooding) and RRL's reputation as a very profitable and durable gold miner, that it will climb back up and recover. That is all. Things do look bleak at the moment, and it is reflected in the stock price. But i think this is an issue that will blow over within the year. You are right there is some risk there, but i think it is somewhat well reasoned, and good chance of reward in the intermediate term(half a year to a year).

 
flower
post Posted: Aug 7 2014, 01:54 PM
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In Reply To: BullandPull's post @ Aug 7 2014, 12:37 PM

QUOTE
Looks cheap at the moment because of a drop due to temporary flooding in its mines, however even given the flooding first quarter figures were not negative. It is a gold miner and gold prices are high and expected to remain so. Gold over time increases without fault. They have recently finished repairs and safety measures to prevent any other flooding, so perfect time to buy at a bargain with a low P/E


Unfortunately the bare chart looks like this for some very good reasons:

RRL didn't have a good last Q burning nearly $A35m
It may even get a resource downgrade this Q
RRL did say that there is a potential for some major write downs amounting to around $A250m
RRL had only $6m in cash at Qtrs end
As far as I can see RRL does not publish it's all inclusive production costs, which is now standard industry practice

So, all in all, put simply there are better gold producers--IMO, and the chart proves the point.
Attached thumbnail(s)
Attached Image


 




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Combining Fundamental comments with Fundamental charts.
 
BullandPull
post Posted: Aug 7 2014, 12:37 PM
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Looks cheap at the moment because of a drop due to temporary flooding in its mines, however even given the flooding first quarter figures were not negative. It is a gold miner and gold prices are high and expected to remain so. Gold over time increases without fault. They have recently finished repairs and safety measures to prevent any other flooding, so perfect time to buy at a bargain with a low P/E!

DISCLAIMER: Don't just invest on my word, check for yourself of course.

 
 


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