Let's face it, Red has had a very bad run of late. But things...

Let's face it, Red has had a very bad run of late. But things are starting to turn. H2 2022 and 1Q CY2023 was a terrible period for Red. With their mining schedule falling behind and the loan repayment looming, they had to expedite their mining. This was communicated to the market with the KOTH catch up plan, but what wasn't alluded to was the potential extra cost of this catch up plan.

Red has renegotiated the repayment profile. They have $22m to repay this quarter, and $14m next half. This should be comfortable funded by existing cash reserves from the capital raising and cash flow from their operations. They advised March is the first month they have been cash flow positive from operations. Given the production in April was higher than March, by necessary implication, April was also cash flow positive. I would think that April was $3m better in cash flow that in March.

May's production numbers are expected to be lower. Anything above 16koz is good in my books. The lower production is due to the planned maintenance shut down. I am budgeting 5 days. June numbers should be 17-20koz. Expecting AISC for half to come in slightly below $1900