Ann: Quarterly activities report, page-10

From a business perspective Red has to stabilise the cash flow. The June appendix 5B states that the estimated cash needed for the Sept Q will be about $14.5 mil. Based on the present gold price they will need to produce around 10,000 oz to be cash positive. Red appears to have adopted a reporting policy of under promising and over delivering. Totally prudent given the issues they've encountered to date. With this thought in mind I'm expecting a gold production to be above their upper end forecast this Q. My thoughts is that they could be cash positive by at least $5 mil in Sept Q. This should help rebuild confidence in the project.
Interesting point is they are only allocating $500,000 cash for exploration this Q. Exploration program maybe delayed until the slip has been dealt with.
All ideas and calcs are my opinions and should not be used for investment purposes.