Posted details in another thread... It is a concern of mine RED...

Posted details in another thread... It is a concern of mine RED has not responded to the gold price at all for the last 3 months. Either market has valued it fairly with limited upside, or it is due a short term catch up bounce at the very least.

All in all I think those arguing cash cow cash flow and acquisitions should be careful. Look at how much others such as RED have had to pay to acquire assets, and what is for sale I think is very expensive. I was furious at RED buying an asset for top dollar that another company I own had given away 2 years ago to avoid the rehab and other costs. The mine has been further developed and produced only at break even since then and was bought by RED for nearlyAUD20M. Asset prices are very high now particularly small ones just because so many miners are cashed up and looking!

Look carefully at their guidance for costs and capital expenditure for the next couple of years. In addition they are 50% hedged so you don't need to even guess where gold is going. Punch in the AISC and the capital spending and exploration and you can get a very good idea how much cash they will earn for the next 2-3 years and compare it with other goldies. RMS make a healthy return, maybe a bit unloved by the market, but ... they do not have the cash generation capacity to justify a repeat of Jan/Feb in my opinion.