Hedging, page-25

If RED produces 17,000 ounzes for each of April, May and June, it'll only JUST put them ahead of the bottom range of their earlier forecasts of 90,000-105,000 ounzes for this Half Year. April output may be impacted by a shorter month for Easter and could look a bit disappointing if daily production rates just matched March daily rates.

To restore a bit of credibility for management, and faith in how well KOTH is going for shareholders, I'd like to see production average 21-22,000 ounzes each month for the next three months thereby delivering a half yearly performance at the top of the 90,000-105,000 range.

If output at the top of the range is achieved, this would probably help push the ASIC to the lower end of the $1,750-$1,950 range earlier forecast by management.

In this happy situation, and with a positive outlook delivered by management when they announce the results of how the company performed this current Half Year, we might just see the end of a RED share-price trading in the teens.