Ann: September 2023 Quarterly Activities Report, page-39

Red 5 Limited (RED) - Top end of guidance in sight (Petra 19/10/23)

As previously reported, RED achieved another solid production result in Sep. Q’23, allowing FCF to accelerate debt repayments and ensuring output is on-track for the top-end of FY24 guidance. The AISC of A$1,696/oz is impressive, remaining below the A$1,850-2,100/oz full-year guidance and less than our A$1,902/oz Sep. Q forecast.
With the King of the Hills (KOTH) operations at steady state in a robust A$ gold price environment, we see strong FCF quickly improving the balance sheet and enabling dividends to be paid from FY25.
These factors, in addition to the highly strategic appeal of KOTH within a region undergoing rapid consolidation, will drive a continued share price re-rating.
BUY, PT $0.40/sh (prev. $0.34/sh) after revised long-term A$ gold prices.