The Demise of RED5, page-23

Never knew much about gold mining before I got interested in Siana. Probably still don't a great deal. Have learned much from the likes of Dr Spok, Hot Chilli, HoM, and others. I keep researching to understand.
One thing I came across the other day, and it might help explain the reduced forecasts over the next two quarters, is a contemporary shit towards reducing production in times of lower gold price to preserve your asset for times of higher prices. In the past mines have tended to increase production in times of lower prices to maintain an expected cash flow. Some also practise "high-grading" to boost production.
Recent shifts has been towards reducing production and mining marginal blocks, to preserve your best blocks for the higher prices, thus increasing your margin for max effect.
This is good in theory but you need two things for this to work
1 plenty of cash on hand and no debt
2 the PoG to rise in the short term.
Red does have $12 mil in the bank, and bullion in inventory, but how long can the reduce production for without damaging their long term plans.
The above are the rumblings of a novice gold investor and should not be taken seriously.