red pros and cons

RED Pro's vs Cons

Pro's

1. Siana just increased resource 135700 ozs of Gold and 2417000 ozs of silver

2. Broker valuation of $3.70 on 31-10-11 (red5limited.com/files/Petra%20Capital%20October%2031st%20Report.pdf)

3. Cash in Bank with no debt - profit to pay dividends as Equity funders/holders will want a return on investment

4. Gross margin over $1000 per ounce (Cash cost per oz US$354)

5. Mine almost complete 1st gold pour imminent, gold production ramping to about +120K ozs from the 4th year (thats $140M @ $1K an oz)

6. Exploration potention at Mapawa has the possibility of "Eclipsing" the Siana

7. Strong Institutional investment over 60% and past equity funding

8. Share consolidation to entice new OS investment

9. Experienced strong Board of Directors which have finally delivered a working Gold mine, ready to profit from any SP increase via their performance shares

10. It's GOLD need I say more !!



Cons

1. Sovereign risk of mining in Philippines with associated political and local rebel risks

2. Possible Institutional control of share price

3. Comapny doesn't appear to be PR friendly to the smaller holders