Ann: Quarterly activities report, page-19

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Exised

6,273 Posts.

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16/07/20

19:03

Post #: 45918652
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Originally posted by MIStragic: ↑

Its a funny old world - "Exised" after taking issue with your pro-RED comments, then contradicts himself by disagreeing with michaelmruc ..... is this cognitive dissonance or the product of making so many comments on different blogs one doesn't know whether your Exised or NonExised ...that's my question. While people bad mouthing RED and advising people to "stop loss" and move on .... to BGL perhaps with a MC of A$820m, no plant no FFS and a long history of "gunna be champions" ... while poor old RED with 2 mines and soon to be 2 plants kicking out 250-300k oz p.a. has half the MC. Lets do a thought experiment. If you had a company that had a project that was within weeks of announcing its FFS for a long life low cost gold mine(140k oz p.a @ AISC A$1200), and it had a lot of the preliminary construction work completed as well as pre-existing infrastructure and still had $122m in the kitty, and the overall estimated cost was $218m (which will be partially covered by the $122m) ... what would that be worth in todays gold bull market ..... hint: 140k x A$1000 = A$140m profit p.a.
PE of 5 = $700m MC PE of 10 = $1.4bn MC .... simple math or too simplistic. NST PE approx 50 ... But thats different I hear say .... Then after this simple thought exercise ask what a company with no debt, a functioning mill producing 90-100k oz p.a. with a temporary blow-out in AISC to $A2000 but with many prospects for a much longer LOM than many think .... what would it be worth ? NOT zero.
The answer to the first thought experiment is obviously way more than RED's current MC .... and Darlot's gets thrown in for free. The amount of cant on this blog is mind boggling ridiculous. He who holds RED when the market properly values the FFS (and Darlot) or the takeover occurs by a big company with a big PE ... he will laugh last.
RED remains my largest holding and will remain so till the true value is declared by the market ... before years end.

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I'll digest it for you in fewer words. Red is a good company but you will need to be patient. PIP hunters need not apply....

Clear enough? If you want it in even fewer words. Look at my sentiment below. It is there for a reason.

Last edited by Exised: 16/07/20

RED Price at posting: 22.0¢ Sentiment: Hold Disclosure: Held
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Ann: Quarterly activities report, page-19

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