Ann: East Coast Roadshow Presentation, page-3

• Red 5 Limited (RED) - Another steady quarter into a stronger 2H ( Petra 1/2/24 )

  
  

  RED delivered another solid operational performance in Dec. Q’23, now achieving >50koz for three consecutive quarters and maintaining a stable cost base (Fig 1 & 2). With King of the Hills (KOTH) now bedded-down, the focus has turned to optimisation initiatives; the first major improvement has delivered higher mill throughput, lifting expected gold output slightly for 2H FY24 and driving a guidance beat.
  This ongoing strong operational performance and associated cash generation will quickly improve the balance sheet and attract increased investor attention.
  RED remains too cheap, at just 0.7x P/NPV and 4.8x EV/EBITDA.
  BUY, PT of A$0.43/sh (prev. A$0.42/sh).

• A strong & more flexible balance sheet will see exploration lift from FY25, with multiple opportunities to grow mine life & consider further plant expansions