Seems like on the way up, many weaker hands piled in and at the...

Seems like on the way up, many weaker hands piled in and at the tip of the hat, some are taking their chips off the table. Good to see that these faithless punters are heading out the door. Bought a bit more at 6c and though it is headed down another 10%, I am alright. I had started buying at 12c last year and saw it go all the way down to 3c, buying along the way so my average is now 7.1c, not too good but have a significant holding so quite leveraged to the upside.

The concern that the ball mill is down so production for the March 2018 quarter is down some 3 000oz leading to the stock price drop of 25% is well and truly overplayed. This suggests more to me the many punters who came in from the rally. Noting that RED has $21m of cash and gold and securities and has generated pretty good net operating cash flow with the Darlot mine on their first full quarter of operation are encouraging signs. They also have no debt right now and can access debt financing, so there is little fear justifiable of financial distress. Their market cap is now $65m or so, and they have almost 900koz of gold reserves, which is great by any standard. There is still a wild card on Siana, which they are developing the underground mines too. Then there is also King of the Hills project that may be back in production by later this year.

Much positives going for it in the medium term, with short term hiccups and little immediate threats on their financial position. I would be buying more if I have more spare cash, but I have put my cash where my mouth is at 6c last Friday, so there we go.