the story unfolding

This is an interesting gold play unfolding. Some of the facts/data that appeal to me:

1) Employment of a well respected CEO and appointment of key personnel to drive the gold project. Look at the MGX chart while LT was CEO (5 bagger at its peak).

2) Funding should be announced on Monday. Note that it is not a capital raising so it is a conventional borrowing or borrowing instrument of some type.

3) Replacement value of the gold production assets are quoted at $100m. RDR picked this up for a song from a lazy administrator.

4) The resource has been increased since acquisition.

5) For those who quote the prior owner's financial woes, note that in 2008 the gold price was approx $800/ounce. I am one of those gold believers who think that we ain't seen nothing yet as far as how high gold can move.

6) The stage 1 mining is low risk. I am not a geologist but that to me means a simple to implement mine plan that meets production and cash cost targets.

7) Capex has remained within budget.

I agree that the way the last capital raising was handled was poor and the resulting dilution not great for shareholders at the time but the next 6 months could see the RDR share price dramatically move if a $50M EBIT pa is on the cards. This will not be a story that we will have to wait years to play out.

I am looking forward to Monday's announcement and the next quarterly report.