WilliamPike - you've put out a question for clever folk but I...

WilliamPike - you've put out a question for clever folk but I hope you don't mind me offering a view as well as them.

Given the history of SLR management, I don't reckon taking over RED is their "end game". Go forward a couple of years, and if the gold price holds up, they'll have run down the current debts and hedges and be generating significant free cashflow from operations.

They'd be ideally placed to buy more gold reserves/mines with either cash, paper or a combination of both and continue to grow their company.

ASX gold companies aren't generally regarded as big dividend payers and I'd not be expecting much, if anything, in the way of dividends from this company. Mr Tonkin and his team may keep on making acquisitions ad infintum and simply suggest that they'll be rewarding shareholders by way of capital growth rather than dividends (a policy seemingly followed by the Boards of most US and Canadian gold miners).