red resources, page-8

I think if you read the announcement from Crest they are extremely bullish on comet - so that looks pretty certain.

In no way am I sticking up for the Reeds as they are just rubbish and I cannot believe the amounts of cash going to them .

However this is now a $50 miilion dollar company with a break up value of Meek alone worth around $100 million . Free Mt Marion and others.

The shortfall is going to be made up with production believe it or not - the $22 million cost of production will bring cash .... They have stated they are on schedule with the tonnage of 100,000 and the grades are higher then the 1.32 of the last qtr ( around 50% )so that should give us at worse around $10 million ..

SO realistically we do not need the sale of Comet but it is always good to have some spare cash in case of production issues ...

So if the grades and tonnage bet expectations and they are cashflow positive then this thing will rocket to about 30 cents ....

If it is a negative qtr report and they do have to raise $10 million to get them over s small hump then 8 cents is about bang on as you will have a company with a mkt cap of closer to $35 million with assests worth closer to $100-$200 million and generating free cashflow of about $30 million a year ... At 8 cents I will be backing the truck up - so it is a WIN/WIN either way ..

Or if anyone is keen we can take the company over and sell Meek to MLX for $50 mill ( they want to processor and free 3 m ounces ) sell Mt Marion to GXY for $20M and Barrambie to the chinese for $10m and comet at $ 6m . AS it is all cheap we should be able to do all that in a couple of weeks and we have more than doubled our $35 million !!!!