RED Phoenix, page-106

First 106 Last

Share
Profile

Follow
leadman

538 Posts.

17

23/11/22

20:28

Post #: 64950310
Share

Originally posted by MIStragic: ↑

Benti, how many times does one have to say, that after full commissioning, the rerate should occur .... not tomorrow FFS.
Any predictions are based on information at hand, the POG, inflation etc etc. Whatever way you look at it, RED5 has been derisked and worst case analysis should still see significant upside ... if not in the short term, then the medium term - only a complete collapse of the POG rendering all Aussie gold miners uneconomic will abort this outcome ... IMHO !

Red 5 Limited (RED) - Onwards & upwards as KOTH positioned for 220kozpa
RED 5’s King of the Hills (KOTH) gold operation in Western Australia continues to ramp up, with commercial production by the end of Dec 22. Whilst the recent equity raising resolved an unexpected working capital shortfall, it will also allow the operation to be further optimised, including a 20% mill expansion to 5.5Mtpa.
Whilst mill expansion studies are ongoing and FY23 guidance is due next month, we update our forecasts to align with the new 5.5Mtpa target, including revised gold output and higher costs given the high-cost environment in WA.
With commissioning issues now resolved, we now see a clear pathway to a significant operation which will deliver up to 220kozpa for at least 17 years. RED trades at a significant discount to our revised A$0.39/sh PT, which in itself, makes it an attractive takeover target.
However, given the favourable location, sunk capital and scalability of the plant, we see KOTH forming a key part of the consolidation of the Leonora gold district.
BUY.

Expand

Which broker and what is the date of the recommendation, thanks?

RED Price at posting: 16.5¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

GYG

Guzman Y Gomez shot up nearly 40% in first hour of trades. Can it last?

TM1

Shares up 196% on Terra's news of major reef discovery at Dante

ASX Market Update: Shares fall flat as GYG soars on debut | 20 June, 2024

BRX

Belararox delineates another porphyry in Argentina at Tambo South

Your questions From the Floor: Investment experts respond...