RED 3.64% 28.5¢ red 5 limited

bullish perspective of gold stock investment

  1. 1,870 Posts.
    I'm an unashamed outspoken bull when it comes to RED. My view remains that RED is still seriously discounted below fair value based on its particular circumstances, relative to most (if not all!) gold producers and soon-to-be producers.

    I estimate, AT A DISCOUNT RATE OF 10%, NPV/shares on issue plus cash(20 million only!) RED share price = 14.5cps for a gold price of US$776/oz !!!
    (AND I have kept A$1=0.90!!!)

    This value considers Mapawa value at ZERO!!!

    This is despite most gold producers continuing to trade at a premium to their reserve positions at current gold price. ie RED has been unfairly singled out and unreasonably discounted based on its current share price.

    As an important consideration to the overall gold bull argument (ie not just RED) I refer you to the following article which adds strong technical argument to gold stocks outperforming during 2010:

    If you believe what that article suggests, there is even more argument to investing in RED as it re-rates moving towards production in early 2011.
watchlist Created with Sketch. Add RED (ASX) to my watchlist
(20min delay)
Mkt cap ! $558.2M
Open High Low Value Volume
28.0¢ 29.0¢ 27.5¢ $3.268M 11.53M

Buyers (Bids)

No. Vol. Price($)
11 469091 28.0¢

Sellers (Offers)

Price($) Vol. No.
28.5¢ 646912 2
View Market Depth
Last trade - 16.10pm 05/06/2020 (20 minute delay) ?
0.010 ( 5.05 %)
Open High Low Volume
28.0¢ 29.0¢ 28.0¢ 981762
Last updated 15.51pm 05/06/2020 (live) ?
RED (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.