At a guess Super, I just don't think the 'market' believes the...

At a guess Super, I just don't think the 'market' believes the rally has legs, or.. after a decade of sitting below POG highs... and all the past failures by gold producers to really reward shareholders, only true die hard investors have stayed the course.

Even with the crap hedges, Darlot is providing enough ounces to mitigate their impact, coupled with the much higher spot prices, REDs debt will soon be wiped and then RED can start paying dividends (that is my preferred option because they don't have any natural avenues for internal growth, other than further throughput increases and perhaps finding a third source of U/G ore to further increase grade). RED is cheap when compared to the likes or SLR, RMS, GMD, GOR etc. Especially so for the long mine life.

For context, RRL has been working on it's McPhil project for.... damn 12 years now (and is likely still a further 12 months away from FID).... this is what a 200k p.a project costs to build..... in Eastern Australia. Yep, you read right... over $1 Billion AUD.




RED has... been able to complete their project during a HUGE inflationary period (likely still going).
Now to be fair to RRL, RED have ploughed a heck of a lot of capital into KOTH (anyone have an exact running total?)
Scary if you include all the time up until they announced hitting 'commercial production'. RRL will face the same hurdle, but... even more costly.

Oh.... and at a total eyeball glance, RRL have spent $200m plus getting to this point! Permitting alone has been insane.

Basically.... existing mines are worth their weight in gold. Existing mines with 15+ years of mine life, doubly so.

RED should basically be sitting around $2 billion for it's market cap (it would be $3 billion if RF down the road was running it).

There will likely still be unplanned issues to face like all miners, but RED should have a bright future (note I am focusing purely on RED, as the 'other topic' has been done to death).