Ann: March 2022 quarterly presentation, page-2

An impressive presentation by an impressive team - the transformation of the BOD and management has resulted in a world class mining organisation in charge of a world class gold project, delivering on time, on budget in an extremely difficult labor shortage and inflationary environment. The multiple synergies that the project offers, such as being close to the regional airport, which helps attract FIFO Perth based staff, proximity to the gas pipeline and the new solar farm etc etc will make RED5 an attractive company to work for for the next several decades !
The debt can be repaid early with expected cash flow, and the hedging will be discharged over 3 yrs. Although this is not desirable, the trade off has been the early start on KOTH and the ability to lock in, fixed price contracts, with leading mining contacting companies.
The focus for the next 2 quarters will be on achieving full commissioning, and ongoing organic growth of resources, reserves and production efficiencies, but beyond that in CY23, regional M&A will be actively pursued to consolidate KOTH expansion potential and longevity.
The MD on several occasions emphasised the quality of the team and the fact that RED was an ambitious company with great belief and determination to grow the company and shareholder value.
Darlot and KOTH was bought for A$34.5m and now has a MC of A$920m with potential to be A$1.5-2bn = outstanding !!!
The buoyancy of the SP this morning, albeit on low volume is encouraging, and my sources opine that they expect relevant institutions to make the most of this final opportunity to get in before the full rerate occurs .... that would be nice.