Undervalued or overvalued?, page-2

I'm not going to argue with your relative valuations in a theoretical sense at the times you state, but I personally am going to ignore what the market valuation is till after the FFS is announced and fully digested by the market. Assuming that this precedes peak Trump, and hence assuming the POG will remain relatively strong, I expect a major re-rating on the basis of the KOTH plant and mine achieving debt financing, followed by an expedited construction and mine plan. Then in retrospect, the CR will be seen as a master stroke in the most extraordinary of circumstances. If Virgin cant get further debt finance, and this credit squeeze is only going to get worse, what chance would RED have had in several months time, prior to the FFS ?
I would suggest, Buckleys and no chance ... especially if the SP had further retreated. A 1/3rd of RED's MC is cash ! Obviously this will decrease over the short term, as RED's management has clearly indicated its intention to maximise all aspects of achieving the FFS while laying the ground work for an accelerated KOTH plant and mine plan .... much has already been achieved. RED has only 2 choices .... stay small and hope for the best or go for broke and get big and take advantage of an historic gold bull market .... I think most would agree with me that the latter is the only viable choice. Those expecting a V shaped recovery are probably drinking Charlie Aitkins Cool Aid. The search for yield and capital growth will ensure the gold miners are more broadly held for the short to medium term IMHO. One more thing - the March quarter result has already been flagged by management as being not much better than the previous quarter, but the June quarter will be substantially better ... but that won't stop the perennial RED detractors from going full whinge .... none of them think RED is anything but undervalued and hence should believe that all thats to argue about is the amount of upside ... but they will still say that this is "the same old RED" (LOL) and this management that acquired KOTH and developed it to the point of an FFS for WA's next big gold mine in remarkably short time "cant be trusted" (LOL). I will take up my second tranche in the CR and full expect a multiple bagger return over the next year ... all other factors being equal.