In the conference call presentation, there was an explanation of COVID related labor issues wth lots of absenteeism after the WA border reopened, supply issues and some inflation issues like fuel (but cheap processing because of cheap gas), but MacMahon have been able to provide extra labor to successfully engage in catch up production. Also emphasis on the geologic endowment "open in all directions" with likelihood of much longer plant life than previously predicted. Lots of emphasis on prospectively of near exploration targets. Unexpected breakdowns (which are a common occurrence during new plant ramp up) have been overcome. Full commissioning expected during the December quarter, and then will issue guidance for full FY production, but should be significantly better than September quarter. Of interest was the news that there has been discussions between RED and SBM about the possibility of processing some of the Gwalia ore at KOTH, which is a mere 35km away. Discussions progressing but no firm outcome yet. The much lower processing costs of KOTH are very attractive to some ore sources.
RED Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
(20min delay)