RRL, like all gold producers, is enjoying the surge in the underlying gold price. With an AISC of around $A2,400, there is plenty of margin for the miner, with the precious metal punching above $A5,100. From a quality perspective, this is not our preferred miner, with the production profile shrinking as it increasingly becomes an underground miner, but it’s nicely leveraged to gold with ghosts of its hedge book well and truly gone. In February, RRL reported a 1H FY25 NPAT of $88.5m and finished Dec with $515m cash & bullion. Since the period end, it repaid the $300m debt facility and is now debt-free and unhedged, as we said, leaving it ideally positioned to benefit from the surging gold price.
- We like RRL into dips back below $4.50.
MM is bullish on RRL medium term
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