2ic Those are possible reasons for LG departure. It could also...

2ic

Those are possible reasons for LG departure.

It could also be that he realised some time ago that the project is not viable for reasons that I do not know (I have little knowledge of this industry) and did not want to be around when the shuite hits the fan and so he first got JP in as CEO and has now resigned so that JP can take the heat from here on. That is basically also what happened at DCN where Rohan Williams was replaced as MD by Leigh Junk. It gave RW the opportunity to sell out his many shares at a good price and suck in newbies over several years as the share price cratered due to an over-estimation of ore grades when RW was MD (I think the over-estimation was intentional). An uneconomic deposit will remain uneconomic no matter who is in charge - of course it is yet to be proven if that situation appliers here or if its just teething problems and possible issues down the track in meeting debt obligations. RED has managed (for the time being) to turn around its operations into becoming cashflow positive despite its onerous hedging arrangements.

I am not a fan of JP given my experience as a former shareholder of BSR, and his false promises and funds raised to undertake small scale mining that never took place at their Senegalese gold deposit - I was lucky to escape when the share price dropped to 18 cents many years ago.

Subsequently JP managed MDL's mineral sands operation in Senegal and he was there when it got taken over by its joint partner ( a French company). I do not know if the struggles and subsequent recovery of the companys operations was due his good or poor management. MDL was a profitable trade for me because I bought a small parcel of shares after the share price had tanked to 22 cents in late 2015 in the hope there would be a turnaround and held them until the takeover by their joint partner.

The Forrestvile mine in Victoria had such high grades and scale that it really would have taken a complete fool to stuff up that operation. I do not know what his actually role was there.

There is no knowing what is going to happen with STA, but I must admit I am tempted to buy a few shares at some stage, possibly after the release of the quarterly report that may indicate their cash position and give some clarity on their operations.

GL

loki