scroll

Regis Resources (RRL) – thoughts post raise

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 23/04/2021

Regis Resources (RRL) – thoughts post raise

Multiple Questions on Regis Resources (RRL) - all essentially about the share offer @ $2.70.

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.

chart

Regis Resources (RRL)

LAST UPDATED 23/04/2021 12:25

Latest Reports

Afternoon report 18/04/2024

The Match Out: ASX snaps losing streak, BHP Qtly in focus

The local market shook off weakness in the US overnight to open higher, largely thanks to our Resources exposure that continues to find some support following trade sanctions on both China and Russia. Late morning saw local employment data land with the mixed numbers largely disregarded by the market. Buying picked up in the early afternoon as yields started to roll off, though equities couldn’t go on with the move, ultimately though the 5-day losing streak for the ASX was snapped with a ~0.5% gain today.

Morning report 18/04/2024

What Matters Today: Do we like Gina’s ongoing buying into rare earths?

Yesterday saw Gina Rinehart emerge as a significant player in Lynas (LYC) after taking her stake to almost 6% over the last few days, although compared to her net wealth, the purchases were a poultry drop in the ocean. LYC is the world's largest non-China producer of rare earths, although China still produces almost 70% of the world's rare earths, with Australia's ~5% output more of a supporting role. Gina's move could be largely motivated by her intention to merge US-listed MP Materials (MP US), which has a market cap. of ~$4.3bn, and the local and larger $6bn rare earth player Lynas (LYC), i.e. it would form a relative $10bn rare earth giant.