Regis Resources Limited (ASX: RRL) is one of the few fundamentally sound material/mining stocks on our market. And it certainly doesn’t have much company at the moment in the gold mining space.
1. Profitable gold producer (at current gold prices)
2. Three separate mines
3. Australian domiciled producer (ie no sovereign risk)
4. Net cash on the balance sheet
5. Well managed
6. Proposing to restart paying dividends for the 2015 financial year
7. Announced share buy back which may start shortly
And, if having gold exposure is good enough for Stanley Druckenmiller and Ray Dalio, than it is good enough for me.
1. Price has come out of a two and a half year downtrend
2. The chart is as good as it gets from a risk/reward probability perspective
3. Gold loves trouble in equites although price will guide from here
Regis was a buy for me this week ending August 21.
16 October Update
Money Flow doesn’t lie!!
Regis closed the week at $2.12 which is a 50% gain to date (plus dividend & franking) on my $1.41 entry from eight weeks ago.
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