I like where the price of this company stock has been heading. However, I have sold a bit of over the past month as the price increased. I did not do that because I think the company is not going to do well. Rather, at the current price, the company is being valued as if it is a mid-tier company. The current production level is 100-115koz p.a. at AISC $1 350-1 550/oz, still justifying itself as a junior producer. Further, the company currently has a relatively thin net cash position of around $8m after deducting the $8m loan from the 5 015oz gold loan arrangement.
Going forward, I believe Red 5 is going to do well. However, for KoTH to deliver more ounces and hence propel the company to mid-tier status, I suspect they will need additional funds. I believe that it is possible they do a modest equity raising, although debt funding is also likely. However, either one of them may result in the stock price pulling back a bit because the current cash balance is thin and the AISC is still quite high. Should AISC improve and they generate more free cash flow, then that may be a different story.
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Last
31.5¢ |
Change
-0.025(7.35%) |
Mkt cap ! $2.142B |
Open | High | Low | Value | Volume |
32.5¢ | 33.0¢ | 30.8¢ | $14.28M | 45.24M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
31 | 1674903 | 31.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
32.0¢ | 282750 | 9 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
31 | 1674903 | 0.310 |
31 | 1159029 | 0.305 |
52 | 1211897 | 0.300 |
9 | 466024 | 0.295 |
16 | 827952 | 0.290 |
Price($) | Vol. | No. |
---|---|---|
0.320 | 282750 | 9 |
0.325 | 759923 | 14 |
0.330 | 1626543 | 17 |
0.335 | 209819 | 5 |
0.340 | 520871 | 10 |
Last trade - 16.10pm 02/09/2024 (20 minute delay) ? |
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RED (ASX) Chart |