Australia's largest stock trading and investment forum Australia's #1 stock forum

RED

Click for more information

0.00%

34.5¢ red 5 limited

Breakout, page-10

First 10 Last

Share
Profile

Follow
Carloyal

64 Posts.

29

12/02/19

16:27

Post #: 37412959
Share

Originally posted by brianchu82: ↑

I like where the price of this company stock has been heading. However, I have sold a bit of over the past month as the price increased. I did not do that because I think the company is not going to do well. Rather, at the current price, the company is being valued as if it is a mid-tier company. The current production level is 100-115koz p.a. at AISC $1 350-1 550/oz, still justifying itself as a junior producer. Further, the company currently has a relatively thin net cash position of around $8m after deducting the $8m loan from the 5 015oz gold loan arrangement.

Going forward, I believe Red 5 is going to do well. However, for KoTH to deliver more ounces and hence propel the company to mid-tier status, I suspect they will need additional funds. I believe that it is possible they do a modest equity raising, although debt funding is also likely. However, either one of them may result in the stock price pulling back a bit because the current cash balance is thin and the AISC is still quite high. Should AISC improve and they generate more free cash flow, then that may be a different story.

Expand

Hi Brian

Possibly when some good assay results come out they might do to the market to raise some capital

Cheers

RED Price at posting: 13.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

NEU

Neuren sees FDA greenlight for 3rd trial into children with Phelan-McDermid syndrome

CHM

Leukaemia patient shows complete response in Chimeric Therapeutics' latest trial

RCE

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Arika to pump $3.2M into gold exploration at WA's Yundamindra following strong maiden program

NYR

Nyrada rat study shows no genotoxicity in brain injury drug NYR-BI03

There are more pages in this discussion • 6 more messages in this thread...

First 10 Last

Add RED (ASX) to my watchlist