Its so important to realise whats driving gold stocks .... the A$POG is 50% above the previous all time high! it makes for large profits for producers. If RED uses some scrip to purchase assets that will be cash flow positive, then it should - SLR's 2019 two acquisitions were scrip based, and the SP has effectively doubled while they maintained their large and growing cash reserves, and tax losses. A company with large cash reserves is bullet proof - large debt ensures a company is always skating on thin ice, and if things crack, a script based raising will be very diluting as the discount will have to be large to get the vultures to accept scrip. I repeat ... if the SP goes up then no current shareholder loses, especially if the company is strengthened by the acquisitions as shown by SLR ..... and SAR and NST recently.
RED Price at posting:
31.8¢ Sentiment: Buy Disclosure: Held
