Ann: Russell Clark appointed as independent Non-Executive Chair, page-18

First 18 Last

Share
Profile

Follow
MRRC

641 Posts.

197

27/06/23

21:33

Post #: 68501010
Share

Originally posted by JoeKing2: ↑

colincj - I can fully appreciate that you're not a huge fan of RED's management for the reasons you set out.

However, I reckon it's worth reflecting on some of the more positive things they have achieved.

They DID get hold of the KOTH tenement in the first place from Saracen. And at a time when gold miners weren't flavour of the month, they DID get up a BFS acceptable to bankers. And then they raised capital to fund a portion of KOTH with what appeared to be quite brilliant timing when the Ukraine situation blew up. And they DID manage to have the construction of the KOTH facility come in on time and on budget despite rising cost pressures within the construction industries nationwide (and particularly in WA). Let's not forget COVID made things a bit more difficult again.

The Sianna mine had been closed because of forces outside their control. Disposing of this problematic asset in the Pacific and concentrating management time and resources, and shareholders capital, towards developing a new mine near Leonora in a Tier One location seems to me to be a fairly reasonable call on balance. Despite the enormous amount of shareholder funds effectively written off as a result, I have the phrases "don't throw good money after bad" and "know when to cut your losses" in my head.

The two most recent capital raisings have certainly damaged the credibility of management and RED's Market Capitalisation (which is down more than 40% from its peak). Despite traders selling down shares over recent times, I see no references to management selling shares (in fact, they've been buyers) so they must at least think the business will be operating better in future.

Even with regard to the most recent capital raising, it's interesting to look at some of the analysis done by Patron. There seems to have been a vast (and expensive) build up in ore stockpiles in early 2023 which impacted negatively on cashflow but which will soon start to see those cash outlay's recovered and banked.

The KOTH mine seems to be producing at levels originally forecast (though ASIC costs appear to be higher) so management hasn't really done too badly on this front either.

If management continues to deliver results into the future like they have in the last 3 months, and they regain a bit of credibility from doing so, they might even begin to score some kudos for what they HAVE actually achieved.

But more importantly, I'd hope such outcomes might see the Market Cap. of RED rise back up to the billion dollar range again. This might rely a bit on the gold price not crashing but that aspect is outside the control the management of every gold miner in the world.

Not ramping, just attempting a bit of balanced reflection.

Expand

Nicely Said.

RED Price at posting: 17.5¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

BTH

Bigtincan bounces 9% after $409M merger proposal sets stage for Nasdaq listing

Superannuation Essentials: Building Wealth for Your Retirement

KAU

Kaiser Reef sets up $8M capital raising to boost expansion at A1 gold mine

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

WTC

A sex scandal is unlikely to hurt Australia's tech crown jewel – just look at trades

There are more pages in this discussion • 17 more messages in this thread...

First 18 Last

Add VAU (ASX) to my watchlist

(20min delay)
Last 39.0¢		Change 0.020(5.41%)		Mkt cap ! $2.652B

Open	High	Low	Value	Volume
38.5¢	39.3¢	37.8¢	$12.24M	31.73M

Buyers (Bids)

No.	Vol.	Price($)
8	700310	38.5¢

Sellers (Offers)

Price($)	Vol.	No.
39.0¢	332507	9

View Market Depth

No.	Vol.	Price($)
8	700310	0.385
17	941121	0.380
17	993797	0.375
16	834256	0.370
5	171557	0.365

Price($)	Vol.	No.
0.390	298537	8
0.395	1202291	16
0.400	1645366	38
0.405	427035	11
0.410	921297	17

Last trade - 16.10pm 21/10/2024 (20 minute delay)

VAU (ASX) Chart

Ann: Russell Clark appointed as independent Non-Executive Chair, page-18

Bigtincan bounces 9% after $409M merger proposal sets stage for Nasdaq listing

Superannuation Essentials: Building Wealth for Your Retirement

Kaiser Reef sets up $8M capital raising to boost expansion at A1 gold mine

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

A sex scandal is unlikely to hurt Australia's tech crown jewel – just look at trades

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Russell Clark appointed as independent Non-Executive Chair, page-18

Top Stories

Bigtincan bounces 9% after $409M merger proposal sets stage for Nasdaq listing

Superannuation Essentials: Building Wealth for Your Retirement

Kaiser Reef sets up $8M capital raising to boost expansion at A1 gold mine

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

A sex scandal is unlikely to hurt Australia's tech crown jewel – just look at trades

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News