I think I will steer clear of the, ah, frustrated posts Suffice...

I think I will steer clear of the, ah, frustrated posts

Suffice to say, I think this slightly dated (but... I feel extremely accurate) report from EagleRes provided me with all I needed to re-affirm the huge potential of RED.

RED5 July 2019 report

To me what stands out, is that RED5 will be a dual mine company, very much similar to RMS and SLR (good peers). With their respective market caps of AUD $920m and $1.3b. Yet both companies have total production of around 240k-260k p.a. Both have reserves of 840k and 1.1m.
As compared to RED5 1.75m ounces.

Patience will be required, but.. assuming (dangerous of course) that RED5 sticks to its plan, the good capital growth will be seen, now that the large raising is complete. They will still need debt to finish of the KOTH plant, BUT... how much will depend on how well they can utilize Darlot (the report above implies 1.2mtpa can be achieved with little cost). RED should try to emulate PRU and how its self funding its 3rd project (very successfully I might add).

I did mention the two bolt on acquisitions RED had already secured (or soon will), which once drilled out, will ad hopefully 2 years to Darlot alone.
I do caution that RED needs to really prove that they can run Darlot well, otherwise, they will handicap themselves, like PNR did over the past 12 months.

RED is only about 10% of my portfolio, as I still feel there is lots of execution risk, but... the raising which big, also ensures that RED can protect itself, from corporate action too (although... that might seem counter intuitive right now, considering the dilution).

Finally... with the huge demand for the companies script, it would seem REDs shares are in demand. I think that clearly implies that other than the quaterly, news flow is going to be quite impressive.