RED 3.51% 27.5¢ red 5 limited

some reassurance

  1. 1,870 Posts.
    RED share price has held reasonably well in the face of a shaken gold price, but IMO it has fsllen excessively, especially when you consider:

    1. It has already received the first tranche of equity funding to advance Siana development. Those very same 31 fundees are to provide the final tranche of equity that assures entire equity funds, now ONLY subject to shareholder approval. Any shareholder would be crazy to vote against this resolution, and i don't believe its a real risk whatsoever.
    From what I understand THERE IS NO RISK that the equity won't be provided by the 31 insto's!

    2. The debt funds ARE NOT DEPENDANT ON MAINTENANCE OF A PARTICULAR SHARE PRICE. THE ONLY RELEVANT CONDITIONS FOR DEBT FINANCE IS USUAL DUE DILIGENCE OF PROJECT TECHNICALS. Since Siana has already been the subject of intense scrutiny by the former Soc Gen technical reviewer which came up satisfactory PLUS the fact it has since been worked on by bank accredited technical consultants, IMO there is no way Siana won't get debt finance.


    3. At US$1,100 Siana is worth around 33cps (+ cash = 35cps) based on cash flow analysis, thus the reason why 31 insto's prepared to fund at 15.5 cents. Even at US$1,0000 Siana is worth around 27.4cps (+ cash = 29.5 cps).

    4. Mapawa drilling is now ready to reassert additional value, whether it be just the shallow gold resource, or potentially a major gold/copper porphyry.

    IMO why get uncomfortable because RED share price is already completely discounted now. Don't add to the discount by selling at this time. RED share price will be much higher once its in production, that's my firm belief. I'm not selling, I want full value for RED!
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