when is the next annoucement due, page-4

IMO we should get the Notice of Meeting out very soon, probably at the end of this week at the latest - I am sure that RED has already prepared the Notice but has got the ASX looking over it before it can be released.

IF there is a slight delay in it being announced, that would suggest to me that RED has put a few more status information things in the release that the ASX is looking at - the fact that RED must get shareholder approval for the total funding package to proceed (this notice probably will only have resolutions re the ratification of the first tranche already done ie refresh of the 15%, and approval of second tranche) RED runs a fine line of making sure that shareholders approve of the deal, and yet not over-playing the share price being heavily discounted at 15.5 cents placement price.

The fact that RED share price since the announcement of the funding package has dropped has put the pressure on the company to make sure that the market is very much aware of what the company position, in regards to current activities etc, is up to.

I take comfort that the gold price has stabilised overnight, and international markets are now more positive with the Dubai interim repayment resolved thanks to Adu Dhabi funding.

Further to this, the final 15 minutes trading in RED yesterday proves to me that RED will at least hang around 15.5 cents for a while yet (refer to my other post on another thread re Big Trade), and I would like to think it can grind its way back up slightly before the General Meeting.

I should also add that my cash flow analysis, quoted yesterday, was very conservatively based and probably unrealisticly so, knowing that in debt repayment I pushed completely forward into a 4 year term commencing day 1 of production - this is simply not one that will occur - the debt repayment is likely to commence some months from day 1 so that cash build up from gold production accrues into a debt servicing account. Thus I have reworked the numbers, still allowing and assuming total debt repayment over the first 4 years, with the first year EPS at 3.1 cents, rising to 9.1 cents year 4.

With this EPS scenario there are RIDICULOUSLY LOW PE's which average less than 3 for the first 4 year period (assuming a current share price of 15.5 cents for RED average PE is 2.8!!!).

Recognising that Siana is a LONG LIFE (10 year), LOW COST operation, such ridiculously low PE's will not last, SHARE PRICE MUST MOVE CONSIDERABLY HIGHER - IMO that will happen once the market accepts the funding package has been approved, the development is proceeding, everything is in line for gold production to proceed!!!

GO RED GO (UP!)