RRL @$2.09 unattractive relative to other goldies operating in similar conditions

• Mcphillamys project costs are old and most likely under estimating at this point. Additionally approvals will be tough given the poor impression the nearby Cadia mine has left on the locals. Re dust issues and etc.
• RRL management performance over past few years has been sub par. Hard to say management added value to the shareholders during their tenure. Company has struggled to generate cashflow. Company really suffered from cost inflation currently plaguing the gold miners.
• The best parts of the Duketon and Tropicana mine are past history at this point. The best part of the known deposit has been plucked and moving forward the grade profile is dropping it will be challenging for management to generate cash. Duketon exploration has not yielded much for all the years of work.
• The closing of the hedge book is a puzzling one timing wise. It had plenty of opportunity to close the hedge at lower price but instead the company choose to close the hedge at all time high gold price. It is arguable whether this is a positive or negative.
• RRL suffers from poor management relative to industry peers. So if share price does rise it is likely to come from reasons outside the company control most likely appreciation in gold price. In the scenario of rising gold price there are better gold operators out there that better captures value. (e.g NST, CMM comes to mind).