Because if they didn't have the $65M equity raising they would be underwater last quarter? I think they are spending too much as their "growth and exploration" costs are sky high. They have lumped pre-stripping in with exploration to hide the true cost of production.
In the next quarter I think their total spend will be around 120M inclusive of interest and loan repayments. If they produce 45,000 in the next quarter, they need to realise a gold price of $2,700/oz to break even. Considering they have a hedge at $2,420/oz I think they would only end up with a realised price of around $2,550/oz.
By my calc's they would be $10M in the red for the quarter. Their focus needs to be on cost control to turn the operation around and $14M in corporate overheads per year should be a start.
I'm not a holder, although I've always had an avid interest in RED. I would like to see them succeed, but they have a lot of hard work to do.
Ann: Outstanding drill results from King of the Hills, page-8
-
- There are more pages in this discussion • 34 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add RED (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
42.5¢ |
Change
0.005(1.19%) |
Mkt cap ! $2.891B | |||
| Open | High | Low | Value | Volume |
| 43.5¢ | 43.5¢ | 41.5¢ | $11.42M | 26.92M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 11 | 222136 | 42.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 42.5¢ | 1437793 | 11 |
View Market Depth
| Last trade - 16.10pm 12/07/2024 (20 minute delay) ? |
| RED (ASX) Chart |