I agree with you about the conservative PE if you don't have a proven track record. Currently, the production results from KOTH is all over the place and until they can consistently deliver 17koz per month, I would find it hard to see the PE climbing up to 22. PER of 8 - 13 seems fair for the risk now, but if you are forecasting for 3 years with a steady state of 65m-125m NPAT, I would say this would warrant a PE equivalent to GOR and EVN. WIth that said, RED is about 3 years behind GOR operationally, so it's not far fetched.
I did have a view that we won't get much movement until the lead up to June qtr results and that is if they hit production targets. If they do announce monthly results along the way, the share price might pick up traction earlier PROVIDED that they hit targets.
RED Price at posting:
16.3¢ Sentiment: Buy Disclosure: Held
(20min delay)