For those doubters about RED's SP resilience, one should compare it with gold miner investors love stock, like SLR, which is down today by a similar % to RED, and its 178c SP is way down from the early April 221c and the July 2020 all time high of 234c. In other words SLR has gone no where for the last 2 years after its rerate secondary to the integration of its Doray acquisition.
RED's rerate will continue, but the POG sentiment and market volatility will obviously have a big impact on the size of the post rerate RED SP.
Phase 1 of this process should be complete by Dec 2022 ? Phase 2 will be 2023-25 as RED expands KOTH output and its efforts to acquire virgin regional deposits in need of a milling solution. M&A with another large entity remains possible. RED remains a strong Hold IMHO.
The gold market has turned bearish, with the GDX and GDXJ down significantly from recent highs. Until the debate about the sustainability of inflation and interest rates, and its affect on the US$ / POG settles, and the longer term impact of the effects of the Ukraine war and China's response, the gold market and currencies will remain volatile and somewhat unpredictable.
Another joker in the pack is the annual tax loss selling period of May-June, and what effect that will have in sorting the wheat from the chaff. Its a great time to be a buyer if your selections are soundly based.
