emperors new clothes?, page-7

Wow, rish, let's get back into facts:

"Which means we both expect gold pouring to be less than 5000oz this quarter, say around 2500oz."
FACT: RED's "gold and silver sales proceeds from the doré shipped to Metalor in Geneva are being received on an increasingly regular basis" (Chair's statement). Also, last quarter production was less than 50% uptime vs currently 61% uptime (although uncertain about Oct or Dec.) So, 2500oz is unlikely if sales have increased, unless Oct and Dec are complete writeoffs.

"A takeover at this level also does not seem likely given continuous operational challenges & exodus of senior personnel"
FACT: "exodus" refers to a mass departure of people, usually of their own volition. RED removed top operations staff (involuntary), who were replaced beginning in September by (apparently) highly skilled former Leighton managers.

"Might buy back again after 2-3 quarters when the new management team has had a chance to fix some of the operating issues and get a chance to focus their efforts on gold production"
FACT: No one knows when RED will get the operational issues sorted out, but some of the key equipment is already in place and the self-powered pump will be installed within the next 3-4 weeks. The Chair pointed out the processing plant is operating very well. The other key improvement would be hook up to the 69Kv grid in 2-3 months. Of course, could be more troubles down the road, but 2-3 quarters sounds more like ramping (or self-justification for selling at this price).