Where to from here?, page-4

Today, SLR is having another exceptional up day - creating a new high since the dark days of 2014 .... 5 yrs to regain less than 50% of 2012 peak SP .... SLR's problem was in the first instance to get rid of underperforming assets .... and this caused considerable angst ... whereas RED acquired underperforming assets and turned them into ... 'gold mines'. SLR also had a problem with the markets perception that it had a short average LOM.
This has been overcome by exceptional exploration of existing assets, and strategic acquisitions. Now, it has a MC of close to A$1.5bn .... for a production of 250,000oz p.a. .... this may increase if they expand their mills or high grade production
. If RED establishes KOTH and expands Darlot as the exceptional management and geology dept expect, then POG permitting, RED's total production (sans Siana) will be in 300oz/yr (?) and hence RED should have a MC well in excess of A$1bn, giving a SP of 80-100c in 2 years time ?
SLR surely has ambitions to grow to SAR size, and so too should RED .... which means M&A will need to happen sometime in the not too distant future. The current SP malaise is not uncommon after a large shareholder exits, but I'm sure analysts are telling clients RED's still a bargain.
Harold McMillan when asked what determined outcomes replied "events dear boy, events.." Gazza has outlined the event schedule that will see RED market profile transformed over 2020 from a "Speculative Strong Buy" to "Strong Buy". Only a general market crash or a drastic decline in the POG will cause the gold share bull market to reverse .... so if you believe in the gold bull market, then RED is going to give you great leverage relative to gold and other gold miners, IMHO.