Regis Resources (RRL) – thoughts post raise
Multiple Questions on Regis Resources (RRL) - all essentially about the share offer @ $2.70.
The Latest Q&A
Answer
Hi all,
In the words of the RRL MD … “The Tropicana deal will be a transformation for RRL. We like Duketon asset (cornerstone) production profile, the excitement and potential at forthcoming growth project known as McPhillamys and the immediate bolt on opportunity afforded by Tropicana. An overall positive for RRL.”.
Firstly, its a big raise and that will likely weigh on the RRL share price in the near term given that institutional appetite for the stock will be satisfied, and the price at which they raised was low versus where it was trading last year. However, over time the quality of the Tropicana asset is good and they now have a better, more diversified asset base. Right now we prefer Newcrest (NCM) and Northern Star (NST) however we are positive Gold overall and RRL is now a more substantial gold operation.
