RED Phoenix

The amount of 'doom & gloom' 'hopeless management' 'gold going to 500' etc etc is typical for this part of the cycle and RED comes into for far more than its fair share of criticism. Scathing comments about the SP, without noting that the whole sector is down by as much or more, and even mid tier icons like SLR are trading at 40% of all time SP highs, even though the A$ gold price is less than 10% below all time highs ....

The problems that led to RED, not meeting guidelines, and needing a CR, are problems that SLR fessed up to in its first quarterly report - these have afflicted the WA mining industry widely. The December quarter should see big improvement in production and grade, and full commissioning is possible, at 4.7mtpa run rate. BUT 5.5mtpa is a short term objective, and if further ore sources can be obtained from Gwalia (?) then KOTH can be ramped up to 10mtpa .... now that's a Super Plant. Remember, KOTH is powered by cheap gas, with fixed price for the next 5yrs !!
KOTH has lowest quartile cost, and by far the lowest cost in the Leonora region. It's the natural regional consolidation core.

Meanwhile CMM "hopes to be producing" less than half KOTH June 23 production, has a MC almost x3 RED. Even if RED's SP doubles in the next 6month, the MC will only we 75% of CMM ..... you cant be serious.
The selling by Nth American based funds is driven by redemptions, and is affecting gold companies across the board. Look at SLR, RMS SP - wow.
If the A$ gold price remains in the profits zone, then these profitable producers will become cash cows with lots of M&A ammunition.