There is no lending with forward hedging, it is solely contractual with the only cost being a small spread going to the broker on opening, and each consecutive rollover. The risk was at the time of the hedge, the stop loss cost if the market did not continue down would of been in the vicinity of $5mil I would think for this amount. But now there is no risk with the hedging, only positives, as a $1600USD spot hit would most definitely be a bullish signal for gold and they will not need the hedge anymore, they would have a macro stop out in the money, at least to cover the spread costs. Unsure of RRLs hedging, didn't do as much research. But as long as the sell hedge levels are around the $1500+ mark, it is in the same category.
Here is a gold price corrected comparison chart I'm working on. So it's stock price / gold, then percentile graphed, Jan 2012 being the 100%/start mark. I will eventually add all ASX gold stocks. BDR is in the lead so far, and the only stock so far with an increased ratio to gold since Jan 2012.
Just wanted to add a positive spin on RRL. They are certainly selling volume @ current share price! That says something. Also, I'm very keen on OBS from here. Not sure though why trade appeared to have halted since about 2pm yesterday? No report out....perhaps sellers didn't accept any bids? EDIT: Report out on BDR says, 300,000 shares will be released (capital grab?) @0.18c odd. How does this work out when shares are trading @ 0.64c odd now? Could someone pls explain this part. Would be much appreciated
Well good luck with that. You've either picked the bottom or there's more downside. Hope that helps. Actually my primitive sense of it is that $1 is a more likely target, but who knows?
Thing that I'm looking for @ moment most of all with these miners is their AISC. It's fine if they have huge revenues, huge asset base, little to no debt, even cash on hand but if it is costing them 1050-1200oz to get it to market. Some projects even higher. That doesn't cut it for me. The likes of MML, PRU & EVN to name a few. Their prospectus takes the shine off their other attributes for me. There are a few thet may have seemingly high share prices say, with respect to their market caps but, they are right on the money with costs, especially considering the recent drop in spot....did a little extra homework last night & this morning. Conclusion: RRL has the performance record but, what of their forecast to end 2015? Esp' costs. This is what bothers me most.....
NickGiorgetta Non Executive Chairman Date of change 26th28thMay2014 Number acquired 1,000,000 Value/Consideration $1,522,118.57 Nature of change onmarkettrade No. of securities held after change 21,529,671
Better to await remediation of their problems I'm thinking now. It's not just a weather event - they have form now for delivering weaker grades in their mining than they've figured in their reserves. Confidence In Regis Resources Undermined
Yeah it's probably better to avoid RRL for now. I believe every gold stock will go up next fiscal year regardless. Already I see an overbought P/E across the board. At the end of the day, it will be mostly shareholder sentiment that will drive up the prices, and a turnaround in gold will definitely push this.
Thanks for the link. They really need to pull something outta the hat now, short term @ least. Long.....very long term now for me to get interested now.
This was supposed be close to the best on offer in the gold space. Now as a stock it's riddled with uncertainty. So many things that can go wrong and not even the experts can foresee them. I've probably repeated it too often and I don't follow my own advice but why does anyone put money in this sector? It's the lure of gold I guess. Just looking at the chart now and after today's effort I can't see a strong chance of it throwing out the anchor until $1 at best. Wonder how much is short selling? I haven't looked. I was feeling it should have shown a bit of lift after the high volume hammer candle six days ago and Friday's news of the chairman buying a million shares on market? Now its already below the low of the hammer candle May 26. I have to agree though that if there is a major turnaround in gold, the metal, these stocks have so much room above now. Could be a feeding frenzy one day of traders and naive investors. The companies'll have all the same vulnerabilities to production problems, albeit muted by higher margin, but everyone will be thinking only of the positive potential. [imgz=http://forums.silverstackers.com/uploads/1893_rrl_june_3.gif][/imgz]
Are you still holding? Don't blame you if you sold out on the way back up but @ least it's on the up & up All the best from here for both yourself & BiGs....
Yes im currently holding RRL, NCM, BDR, STB, PGI, TRY. Im accumulating miners now , for what looks like the next couple of years. Looking for more specie stocks in the future as the PM prices confirm uptrend.. whenever that occurs. Thanks for your thoughts and commentary. Appreciated GOLDPIRATE!
Yeah I've since got into the biggies as well, NCM and NEM (NYSE). I'm waiting to see if July has a PM smackdown before I buy more miners. The resistance stocks are just what I buy first, I'm definitely going to diversify into the completely un-hedged miners too as they have the biggest swings xD
Lol, maybe that marked a significant low - $1.40. And just noticed last month, June, big black volume bar that is a record for RRL
