RRL - Regis Resources

[Rabbithop]

RRL not having any luck ( currently ) is fine by me

i currently have a buy order in @ $1.75 to add extra

unlike my previous picks , i am getting slightly bulky on this one

so probably won't be hoping for more than two buys this month

i expect the gold price to continue being suppressed , as they try to flush cash into Treasury Bonds( and prop up the currencies


it is very easy to look wise in hindsight but the potential profit is made jumping in at an attractive opportunity ,

RRL has bought itself a mid-term cash-flow , if the management is sound a reasonable outcome will follow ( for a while )

DYOR

Great mind thinks alike. My outstanding buy is same as yours. I am whinging at my current holdings bought in at $5 plus, still hoping to see the 5 infront.

 

[fanger]

I got in around $2.40 thinking it was a good buy but this stock has become much unloved. You'd think with the Aussie dollar weakening against the US dollar pushing up the Aussie gold price, gold stocks would be heading north.

 

[divs4ever]

RRL didn't pop up on my radar until they bought that share of Tropicana , i held AGG ( 'free-carried' ) and IGO at the time ( have since exited IGO )

so while i am still in the red on them . i am not DEEP in the red

remember it is the buying power of the currency that is sliding , that $5 could easily return but what will be the price of a loaf of bread at that time

i am hoping they can pay some divs while other companies are facing difficult times ( as some undoubtedly will )

 

[divs4ever]

there is an agenda to making various currencies look strong

 

[divs4ever]

bought some at $2.45 , some at $2.05 , and some at $1.99

but i really don't want a 'truckload of them '

so maybe two more buys will be plenty ( or a bit much )

 

[Rabbithop]

RRL didn't pop up on my radar until they bought that share of Tropicana , i held AGG ( 'free-carried' ) and IGO at the time ( have since exited IGO )

so while i am still in the red on them . i am not DEEP in the red

remember it is the buying power of the currency that is sliding , that $5 could easily return but what will be the price of a loaf of bread at that time

i am hoping they can pay some divs while other companies are facing difficult times ( as some undoubtedly will )

It will be a couple of yrs wait to see the 5 again. Mean time trying to put a little extra into NST while putting DEG on hold till further good results. Good solid companies shld be able to maintain div payments while smaller companies may chose No Franking credits in order to pay a div to please shareholders.

 

[Rabbithop]

It will be a couple of yrs wait to see the 5 again. Mean time trying to put a little extra into NST while putting DEG on hold till further good results. Good solid companies shld be able to maintain div payments while smaller companies may chose No Franking credits in order to pay a div to please shareholders.

 

[Rabbithop]

bought some at $2.45 , some at $2.05 , and some at $1.99

but i really don't want a 'truckload of them '

so maybe two more buys will be plenty ( or a bit much )

Well entered with those prices. Like your icon, Things to do today, Get up, Survive, Go Back to bed..A good Retired's life.

 

[divs4ever]

i initially got into NST early below $1 and only one operating mine

and while i have added more this year i am not desperate to average up

am thinking sub $9 would be tempting for extra NST

but being 'retired' also means scratching together extra investing cash , isn't easy , so i have to be careful ( where possible ) there are plenty of traps out there .. better to lose a toe than a lower leg

 

[mullokintyre]

RRL's problem is the truckload of money to be spent in capex over next few years.
Like so many OZ players, the AISC is constantly going up, and their margins slipping, even with the rise in gold in AUD terms.
Too many small players in OZ, there needs to be a lot more M&A before another big player emerges that can mix and match operations depending on gold price.
Mick

 

[Ann]

It will be interesting to see if RRL can stay close to its long term support line from 2008, doing the long term and short term third touch. If it can sneak along the low road for a bit, it will be beyond its overhead falling trendline resistance from mid-2020, without raising a finger. It will be interesting to watch and see if gold begins to take off simultaneously with RRL clearing the trendline resistance.

 

[Rabbithop]

Let's hope so.

 

[divs4ever]

got that parcel of RRL @ $1.73 so the day hasn't been a total bust

now to calculate a lower target price i suppose .. maybe in the $1.50 to $1.60 range ( i am still a little bit greedy ) and am bordering on PLENTY with the next buy ( if it happens )

 

[Rabbithop]

got that parcel of RRL @ $1.73 so the day hasn't been a total bust

now to calculate a lower target price i suppose .. maybe in the $1.50 to $1.60 range ( i am still a little bit greedy ) and am bordering on PLENTY with the next buy ( if it happens )

I had shifted further back to 1.51 pre open, not that eager to catch this stock falling knife. Buying to dilute.

 

[divs4ever]

that 30% share of Tropicana should give it cash income , so in theory there should be a price floor ... unlike say KCN over the last 10 years

if RRL has enough cash coming in to fund the projects under development , only cost blowouts should really worry it

ultimately the RRL share price will depend on if they can keep on paying divs during this growth period , no divs and buyers will mostly be traders playing RRL as a defacto gold price bet

 

[Rabbithop]

that 30% share of Tropicana should give it cash income , so in theory there should be a price floor ... unlike say KCN over the last 10 years

if RRL has enough cash coming in to fund the projects under development , only cost blowouts should really worry it

ultimately the RRL share price will depend on if they can keep on paying divs during this growth period , no divs and buyers will mostly be traders playing RRL as a defacto gold price bet

Spot on.

 

[mullokintyre]

that 30% share of Tropicana should give it cash income , so in theory there should be a price floor ... unlike say KCN over the last 10 years

if RRL has enough cash coming in to fund the projects under development , only cost blowouts should really worry it

ultimately the RRL share price will depend on if they can keep on paying divs during this growth period , no divs and buyers will mostly be traders playing RRL as a defacto gold price bet

The problem is, so many companies are finding their capex estimates are way off.
Inflation, transport (or lack thereof) issues, inability to find skilled workers, all the things that push up the engineering and implementation costs.
And if there are delays, it jusr compounds the issue, especially if the co's are relying on cash flow from depleting mines.
If you have a look at some of the recent big capex projects in OZ, very few of them come in on time and on budget.
The only saving grace might be big increases in the POG.
Mick

 

[divs4ever]

The problem is, so many companies are finding their capex estimates are way off.
Inflation, transport (or lack thereof) issues, inability to find skilled workers, all the things that push up the engineering and implementation costs.
And if there are delays, it jusr compounds the issue, especially if the co's are relying on cash flow from depleting mines.
If you have a look at some of the recent big capex projects in OZ, very few of them come in on time and on budget.
The only saving grace might be big increases in the POG.
Mick

yes that is very true , this period should separate the well-run companies from the others (ALTHOUGH some big cashed up companies will use their credit facilities to buy extra cash-flow and reserves via swallowing smaller peers )

it will be interesting to see which management strategies work well , EVN's JVs + forming mining hubs , say compared to NST's geo-diversity + buying under-explored junior projects , and various other mid-tier plays applied elsewhere

maybe depleting the existing reserves but planning for a lower carbon footprint in future projects ( possibly cash-starved explorers ) has it's logic this time also ( NOT my favourite strategy , but if it works this time ... )

but yes cost blowouts ( including project over-runs ) and inflation will be a challenge , SOME bigger players will move towards more automation( and autonomous vehicles ) while others will move towards lower energy costs ( that trend has made SXE a nice winner for me , upgrading mining power plants )

another winner MIGHT be FWD ( deeply in the red for me ) and other temporary accommodation providers ( less FIFO workers/ fewer trips per employee )

( say EVN set up a township in the middle of the planned mining hub precinct in WA , as an example )

 

[Sean K]

The problem is, so many companies are finding their capex estimates are way off.
Inflation, transport (or lack thereof) issues, inability to find skilled workers, all the things that push up the engineering and implementation costs.

Agree @divs4ever and Mick, this is what concerns me about DEG, which I've taken a long term bet on. I'm just buying significant dips at the moment as I see their land hosting up to 15m oz. But their scoping study came up with a Capex of well under $1b, for a complicated ore body, in rising inflationary costs. Other factors make Cap/opex cheaper, but I just don't believe their numbers. I'm guessing they'll be about 30% off, at least. But, I've factored that in with POG probably 50% higher once they get to production too.

 

[Telamelo]

Unfortunately, am already "deep under water" in RRL having bought in recently @ $2.14 so decided to rescue left over funds here & deploy into better prospect Goldie's like SLR & OGC respectively.

P.S. Only kept a very small position here in RRL longer term because the way share price is trending lower & lower may be able to add more here closer to lowish $1 range imo