secret is out, page-17

Thanks Wanelad1, and I appreciate your comments. Certainly the general view on gold seems to have softened, and that must have a significant effect on the appetite for gold shares, and so far RED has also been caught in it as well.

You may have noted that a few times I have shown a level of frustration with RED's share price being caught up, bearing in mind that unlike most other gold shares where you can actually value something by a simply DCF calculation, that in fact RED has NEVER traded at a premium to the fundamental value based on anything like current gold price, whereas I would say ALL other (please correct me if you are aware of one that is similar to RED) gold companies (and I recognise the RED is not yet a producer, just in the throes of becoming one) are trading currently at a significant premium. And further, on a P/E basis, again RED will be trading on a value around 2 - 2.5 which suggests a very short life mine whereas in actuality RED has a 90% stake in at least a 10 year life mine!

But over time, once any further uncertainty is completely removed about RED becoming a gold producer should result in it finally trading at a premium to that implied fundamental value, at the day's gold price whatever that is.

Due to it being backed by excellent fundamentals I suggest that it will be a good buy in time once your charts also confirm it ready to run north again - who knows, the drilling at Mapawa may hasten that move up!