Ah yes MIStragic, this may come together beautifully. The thing that is missing at the moment is capital to bring all three mines to their best potential. With the time line for KOTH is locked in, and assuming it is fully funded, KOTH should reach steady state production in June Q in 2022. After that, with copious amounts of free cash, there is flexibility on where to next turn our focus Looking at this logically, by June 2022 KOTH will be at steady state producing 150,000 plus oz pa. Meanwhile if Darlot’s cash is reinvested back into Darlot as exploration and open pit development, by June 2022, Darlot should be humming along nicely as a low AISC operation producing 100,000 plus oz pa as KOTH reaches stead state. This leaves Siana, presently sitting idle and chewing up $6 mil pa, with the capacity to pump out 100 plus oz pa. To get there it will require $100 mil plus in capital, for development of both Siana and Mapawa. Given the boards need for mining policy certainly in the Pines the May 2022 presidential election, and an assumed retreat of the COVID threat by then, support a restart of operations at Siana, possibly in 2023, assuming there is a significant change in heart by the office of the president. With all three mines operational by the end of 2023, 2024 would be a good time to refurb Darlot to a 150,000 plus oz pa operation. By 2025/2026 there is a possibility/probability that RED will be pumping out in excess of 400,000 oz pa bringing it well into the mid tier ranks. While there are a lot of assumptions, and may be pure conjecture on my part, it presents a clear path to managements stated objective. One last question MIStragic, does your stated support of 32-34 cents take into account the potential significant increase in reserve/resource in tomorrows release, or do you think this has already been factored into the present SP. Good luck to all tomorrow.
RED Price at posting:
31.5¢ Sentiment: Buy Disclosure: Held
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