Thanks Wanelad1, and I appreciate your comments. Certainly the general view on gold seems to have softened, and that must have a significant effect on the appetite for gold shares, and so far RED has also been caught in it as well.
You may have noted that a few times I have shown a level of frustration with RED's share price being caught up, bearing in mind that unlike most other gold shares where you can actually value something by a simply DCF calculation, that in fact RED has NEVER traded at a premium to the fundamental value based on anything like current gold price, whereas I would say ALL other (please correct me if you are aware of one that is similar to RED) gold companies (and I recognise the RED is not yet a producer, just in the throes of becoming one) are trading currently at a significant premium. And further, on a P/E basis, again RED will be trading on a value around 2 - 2.5 which suggests a very short life mine whereas in actuality RED has a 90% stake in at least a 10 year life mine!
But over time, once any further uncertainty is completely removed about RED becoming a gold producer should result in it finally trading at a premium to that implied fundamental value, at the day's gold price whatever that is.
Due to it being backed by excellent fundamentals I suggest that it will be a good buy in time once your charts also confirm it ready to run north again - who knows, the drilling at Mapawa may hasten that move up!
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Last
39.5¢ |
Change
-0.020(4.82%) |
Mkt cap ! $2.686B |
Open | High | Low | Value | Volume |
40.5¢ | 41.0¢ | 39.0¢ | $9.181M | 23.04M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
34 | 1243803 | 39.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
40.0¢ | 139143 | 5 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
33 | 1242044 | 0.390 |
15 | 644451 | 0.385 |
29 | 1163879 | 0.380 |
5 | 300070 | 0.375 |
26 | 801786 | 0.370 |
Price($) | Vol. | No. |
---|---|---|
0.400 | 139143 | 5 |
0.405 | 607644 | 6 |
0.410 | 622427 | 9 |
0.415 | 292677 | 10 |
0.420 | 496877 | 18 |
Last trade - 16.10pm 25/07/2024 (20 minute delay) ? |
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RED (ASX) Chart |