red resources, page-7

Megles,

I respectfully disagree with some of your assumptions.

Firstly: The Comet Vale "sale" is NOT a done deal. It's simply an MOU with a potential purchaser to carry out due diligence for 2 months with conditions attached. There is NO certainty that any "sale" will eventuate. Hence the $6m revenue cannot be relied on. Remember,RDR has a habit of exagerated matters.
Secondly: The last quarterly stated that the company received revenue during the period from a $19m facility plus $10m via a CR. The stated net total received from these raisings was in fact only $26.963m ("after financing costs").
Subsequently,at the end of the quarter the company reported it had only $19.248m cash at bank.(Note that Other moneys are "restricted deposits" and NOT available.) Hence, with the stated $25.259m outgoings this qtr this leaves a shortfall of $6.011m.
You say that "The Comet Vale sale will now fill that gap." In my opinion this is flawed assumption, however the Reeds may also choose to use that spin.
The big worry for me is the silence regarding ozs of gold produced. In my opinion there will be negative news surrounding this issue otherwise the SP would not be at a record lows.
I can't agree when you say "this is a GREAT punt". There are much safer punts around. Try one of David Reed's dodgy horses at 50/1.