a bombshell, page-5

hotchilli

I agree that there is potential for cherry picking but the problem lays in the fact that RED has known the outcome of several events and reviews etc but have not informed the market.

One possible version of an announcement regarding this matter in Dec 2013 might have been: ‘Discussions with the Philippine government departments have led to the Company to believe it is likely that the site will require a new tailings dam constructed before the CDO can be lifted.’ This would have correctly informed the market of the likely (really actual) outcome of the review without causing any loss to the punters. In other words ‘fully informed’ without insiders having a 36 day head start! Which some did!

Similarly the cause of the dam failure that took 6 months to reveal to the market could have been handled by announcing something like: ‘Due to operational negligence by persons unknown at this stage, there has been a failure in the operating tailings dam. Since there is no other repository for tailings at the site in the near future since TSF3 has been decommissioned, the site has been put on care and maintenance.’

And there have been other occasions of information delay that have been discovered in hindsight.

Leaving shareholders and the market ‘hanging’ when information is known for extended periods is unfair and not in the spirit of Continuous Disclosure.