Some quick figures for critique based on Q3. The below is a...

Some quick figures for critique based on Q3. The below is a quick back-of-the-envelope calc on what free cash flow RRL may be generating given that the capex cycle is over and assuming Q3 is representative going forward:

Q3:

+$12m added to cash and bullion for the Q (total to $26.2m)
+$21.3m that was a the final catch up payment to MACA from flooding credit extension
-$7m from price differential between Q3 and now (82k oz sold x $1,424 - $1,335)

Forward cash inflows per Q = $26.3m x 4 Quarters = $105.2m annualised based on current POG

Other cash items may be deducted from this, e.g. tax payments (although P&L will be far less than free cashflow and thus tax % will be lower than the above would indicate).

EV/ Cashflow c. 6.7x

Backs up likelihood of RRL reinstating dividends given net debt is only c. $14m.

A 5c dividend would represent a 3.8% yield and cost RRL $25m
A 10c dividend would represent a 7.7% yield and cost RRL $50m

5c would seem probable and a 10c dividend would not be out of the question. With +10% now short sold that would make them sweat.

Cheers
John