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RED - RED 5 LIMITED


banjine

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RED appears attractive for a short term Gold trade--now have an interest.

 

Fundamentally it will be producing gold in the Philippines in 12 months time

 

RED's projected production costs are USD351 per ounce

 

No Gold hedging in place

 

Tight register: 977m shares on issue.

 

2 major holders own 25.8% both appear to be hedge funds.

 

Reasons-- apart from the above Fundamentals--am expecting USD Gold to move upwards shortly following the FOMC meeting and the implications of more money printing in the US. Also my two favourites wont fall back enough for a re-entry.

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sjl: I'm only looking at RED as a short term trading vehicle, if successfull will ad RED to AVO & AND as my 3 gold trading alternatives.

 

At this stage cant spot any Fundamental flaws, funding package needs approval. Southern Cross did some research back in November 2009, where they had a 12 month target of 27c for RED.

 

Longer term it appears the research has RED at around 35c, using USD Gold at 1100 per ounce and an AUD exchange rate of 93c

 

All seems OK to me, next 6 months probably critical as RED approaches production.

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Thanks flower.

 

One question I have which you may know the answer - I believe in a recent presentation they may have indicated there is also a lot of Silver at the mine. I'm probably mistaken but if this is true, it doesn't seem to be factored into any of the analysis I have seen. Are you able to shed any light on this?

 

Thanks

 

sj

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I think there was a typo, that should be 849,000 ounces of gold for any other listeners.

 

Yes so I'm not sure how much this effect will have on earnings estimates but I figure it must be a good thing. I've read a couple of articles that predict Silver to be the next flavour of the month.

 

I think i'm beginning to convince myself for a top up!

 

Thanks very much flower.

 

Cheers

 

 

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