beatle ramblings from afar, page-7

more from beatle:

A few points to consider with things that have happened over the past weeks with RED:
1. Anglo has sold down 14 odd million shares. That is a positive for RED IMO as it removes an obstruction to any serious major company that may want to do a deal with RED on todays commercial terms for JV's (on Mapawa) or takeover based on the "new normal" - JiZin for instance, the huge Chinese mining group that has taken over Tampakan and has indicated its interest in getting more Philippine based resources will be amongst that group. (I understand that at least 1 company has already approached RED with an expression of interest out of the blue (RED is not seeking any JV on Mapawa).

2. Mapawa grade, at 1.0 g/t is HUGE!!! IF Mapawa is to be developed, unless there are differences to it than at any other porphyry style mineralisation it will be developed as a huge open pit, it would not be developed as an underground. Note that grades in the top zone have already been drilled by Suricon with indications of grades in the 1.5 - 2.5g/t range, thus it has fantastic likelihood of being developed as economic proposition with ore grades at surface ie unlikely to be handicapped by large overburden pre-strip that was an issue with Boyongan when it was assessed for development a couple of years ago (but since then commodities prices have risen appreciably so its more likely to be economically viable now - Philex the owner of Boyongan would do well to consider a JV with RED to co-develop a large project consisting of Boyongan and Mapawa, of course, IF Mapawa continues to prove its mineralisation extends beyond 1 hole!).
(Hole 2 at Mapawa is not expected to be as good as hole 1, but hole 3 is a biggy!).

3. Project finance for Siana development is due any time soon. When that is finalised, that should be the trigger to a re-rating of RED based on valuation solely of Siana (which suggests at current gold price ~33 cents cps). With upside of Mapawa the current RED valuation is around 45 cps.

4. The ups and downs of the market and commodity price will also have its effect on RED, but this should be to a lesser extent when the market is assured that Siana development is underway with debt finance approved.
This likelihood has been increased with the recent acquisition of Merrill Crowe Corporation, increasing equity of Siana by RED and its employees to 100% (also Mapawa from 80% --> 100%) and ensuring ownership of each MPSA is now under RED control.

Soon it should be up up and away!

thanks Beatle