Some loyal holders and new holders are complementing management...

Some loyal holders and new holders are complementing management on a bold and strategic initiative since Siana is on hold; yet other non holders and holders are questioning what is going on here.

Lets look at Darlot the Gold Fields (GFI) acquisition; RED have stated they are looking for a strategic partner in the Philippines; both RED & GFI have ECC problems which is well documented, a good talking point one may say. Historically the average producing margin for the Darlot mine is only $71 per oz for the last 3 years, yet the costs to acquire Darlot reserve (450,000 oz / $33M net costs incl environmental liability) is a whopping $594 per reserve ounce......ouch! Add onto that mining, processing, admin, labour etc etc etc.. and ask yourself the question can you still make a measly $71 per oz.



Lets look at King of the Hills  underground (SAR seller) which is located 100km from the Darlot processing plant,  the trucking costs alone IMO would be at least $190 per oz of gold. Historical data showed an average margin of $263 per oz yet one must consider the distance to the processing plant is changed considerably.



Let's look at the pro forma value of the sale of the mine deals; for GFI  the deal may realise $36.2M and for SAR the deal could be $31.6M (see below).....wow!!!!!

For loyal RED SH's the pro forma EV per share may realise 6.3c per share if all your share options were purchased, but, but, but that includes Siana which is on hold indefinitely, it does not include the risk of trucking ore from King of Hill underground  100km to Darlot and it does not include the fact that King of Hill is a resource only; the current SP is 4.2c per share and I doubt it will rise to 5c given the many many uncertainties presented.

Yet they may explore if they have capital and as others have stated this could be a golden point drop field gold proposition for success....

So who would be the winners here; obviously GFI,  SAR & RED management IMO; please do your own research & calculations obviously.