gold looks set to break out from here.
Red 5 according to Hartleys is the cheapest gold stock on the market, so most leveraged to a break out in the gold price.
what i like most is they are sitting on cash, forecast to produce 80,000 ounces and the already low cash cost should come down EVEN FURTHER because the waste to ore ratio is set to go from 8:1 to 3:1 from this month on. Last quarter EBITDA was $20 million. This quarter should be even better. And with $20 million cash you are still only paying $80 million for the company.
i value it at $0.25 excluding any upside for exploration.
RED Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
