the worm is turning

All of us long term followers of RED have been anxiously waiting for completion of the milestones necessary to bring Siana closer to development and production. It has been a long, drawn out and frustrating time, and in that process many of even the true believers have either given up or rubbished management or both, I admit to being one of those that has openly shown frustration with the long and winding drawn out process.

BUT most of the long term posters on hotcopper re RED have remained bullish, we are still in the stock for the day that the worm finally turns! Although I am not a technical trader, I can see it in the trading nowadays, with increasing strength in the bids and ever-building support for the stock.

AND my prior bullish frustrated self has been completely replaced by a TRUE BELIEF that the project development announcement is just around the corner, and that the company is about to be totally re-rated upwards with much bigger players about to realise that RED will becoming a very serious gold producer in just over a year or so.

If you look at the gold producers within the ASX there are comparatively few of significance, and RED's gold production story is on an ever-evolving ramping of production as it commences with Siana open-pit, increases gold production from substantially higher grade underground (and probably augments that production with either of trucking or additional stand-alone production from Mapawa). It is indicated from current reserves that project life is a plus ten years affair, and likely to increase with underground exploration and commencement of Mapawa exploration.

RED will be a ripe target for takeover from the bigger gold stocks just waiting for RED to have done the hard work in pushing through the difficult Philippines bureaucracy into production.

But takeover target or not, RED will be on the screens of many bigger traders, investors and institutions as its market capitalisation steadily builds. Just note, that currently RED has ~ $23 million in cash, and market cap of ~$58 million, and a GOLD project with an NPV of no less than $200 million (RED's share!), based on past feasibility studies, an increased gold reserve, and a gold price 50% higher than feasibility studies! (I believe RED has a NTA including NPV of 34 cents per share).

Based on most economic forecasters suggesting that gold is likely to be heading north in the next year as world-wide inflation increases and the US dollar slides, there is no better way to hedge your own investment positions than taking exposure to gold producers, and there are few gold companies not yet already re-rated. RED has had a minor re-rating, the big move is yet to come.

I can say, pun or no pun intended, EVERY DOG HAS ITS DAY, Go RED, you're still to get white hot in my view!