Hopefully my glasses, are just glasses. Really struggle to understand why you believe 1.3g/t is anemic, when... most Australia producers are very happy with open pits grading 1g/t+. In fact, I would argue that 1.2g/t or higher is basically now high grade for open pits. Many now average under 1g/t.
Even market darling (rightly so) CMM, have an average grade of under 1g/t, yet are literally, the cheapest open pit miner in Australia.
Red is likely to have a 1.3g/t (due to Darlot) for both near term, and long term once they go U/G properly at KOTH. I only have a small holding in RED, as management have really underperformed in regards to capital raisings and timing of decisions. But KOTH.... is a monster of a pit.
As for REDs commissioning, compared to many, its doing fairly well. Especially if you compare it to CAI and PNR/TUL. yuck. They have been disasters.
In any case, I appreciate the differing view. 8-10 days of under production is not a big deal, especially if they can catchup with higher grades. We will see of course.
As for the fall in the share price, RED only touched $0.26 very briefly, $0.24 down to $0.18 is disappointing, but...WAF is over 30% of its highs. WGX is 30% off its highs. CMM is 25% off its highs... I could go on. REDs huge number of shares make it a plaything, so the swings are going to continue to be larger, until as you say, the plant hums...
I am sort of surprised no one has had a tilt at RED, considering there are not other real options for the mid tiers to jump up a production profile with just 1 pit. Anyway, I wonder if RED will give another update in mid March about Febs production. I hope so. As that will hopefully be because they have good news to spruik.
RED Price at posting:
18.5¢ Sentiment: Hold Disclosure: Held
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