RRL rallied 1.4% on Thursday, taking it up 27% year-to-date. In its 1Q update RRL maintained its FY production and cost guidance, a welcome change compared to Newmont’s (NEM) miss. With a forecasted All in Sustaining Cost Base (AISC) of $A2440-2740, while gold is well above $A4,000, things look good for RRL although yesterday Canaccord downgraded the miner to Hold, or in other words take some profit after its huge rally.
- We like RRL and the gold sector with RRL looking good risk/reward ~$2.60.
MM is bullish RRL
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