RED - RED 5 LIMITED

[tophat21]

New report just out.

[mercury]

NOTHING REALLY NEW.

 

jUST MORE OF THE SAME. sTILL NO REASON FOR greg edwards to leave. I don't like the reason given 2 weeks ago.

 

But the electricity problem is the real reason for the drawdown of funds. And until production of gold increases and they can give a thumbs up to the plant working constantly and efficiently....then there may be more money needed. That 8 million will go a long way with gold being poured, even if only a little bit. But who knows what is going to come next?

 

Merc

[Black cap]

The (in)activity report is out. Depressing reading. So is the cash flow report where is stated admin costs were $1.3 million for the quarter. I wonder what the next issue/problem will be?

 

BC

[tophat21]

Try again BC

[mercury]

I have been watching RED. Here is a perfect example of a company with one asset in production, and what happens when they have problems. the future looked bright with a low cost for production of gold....but when problems occur...the price of production goes up quickly...or production ceases. Either scenario is a disaster for the share price. And this latest setback (ground movement) may be a killer.

 

The company likes to promote the fact they have some other sites that they would like to explore. But these site explorations are way way down the road....and cost money. without the Siana mine producing profits, they won't be able to do any more exploration without more funding.

 

i was hoping to read that production was increasing with efficiencies and that the future looked brighter. but this latest announcement looks bad. i feel for those who work and live there. The community around that mine supports it very much, for the workers are pretty well all locals. They get paid twice as much as local persons usuallly get paid, so they really like the mine. If it were to close, it would be a big blow to the local economy.

 

merc

[Rufous]

Today received documents for SPP with lots of shares to be issued at 10c.

 

With a last price around 60c there may be some value.

 

The offer is to a friend who is overseas and I don't really know much about the coy.

 

Any comment would be appreciated.

 

Rufous

[mercury]

Haven't paid a whole lot of attention to this stock. although on should have anticipated its rise with the price of gold (being a goldie) .

 

but its fall is also not unexpected to today's price of 7.5

 

One thing that is paramount in my mind. Despite the Phillipino gov't having not much care for the workers on the Mindinao Island, (which means they don't really push for getting the projected restarted for the people's sake...probably some good bribery money needed here)

 

But the company DOES have 39 million Dollars just waiting to be used .

IF they didn't get the go ahead on the Red5 mine....then they still have 30+ million to play with. the people who bought shares to put up that money are no happier than the shareholders who hold. I am looking for one positive low low price to get in. OR an ann. that they can start investing in the mine again. Should that occur, they will still be one of the lowest cost producers around.

 

 

 

 

any thoughts from anyone out there who Might be interested and has followed this stock.

 

 

 

 

Merc

 

 

 

[tophat21]

Hi Merc. I wrote to Norregaard yesterday and asked if it would be possible to supply the stock holders with more up to date information in regards to the Philippines Government.

 

Thanks for your news. Top Hat

[mercury]

I spoke with Noregaard myself a week ago.

 

he didn't sound particularly upbeat. DIDn"T

 

.sounded more like ............ we think it should happen sometime....but no telling when we will get the go ahead,...and if we don't get approval to to do, then we have this money to invest elsewhere."

 

 

 

 

to me this is promising. and a very low cost producing mine if they can get it running. and if they don't get approval....then cash to invest. But for the moment....things are not going well. It is a waiting game. Waiting on government approvals. Can be slow if somebody wishes it to be so. And maybe that is the problem...they don't have a lobbyist to get the game really rolling.

 

 

 

 

I believe he is fed up with the government departments over there. (they have another gold interest (for those who don't know) that is also on the same island. The won't be working on that interest UNLESS Red5 gets up and running. and if it doesn't then they will use the 30 million plus to find another project.... IN ANOTHER COUNTRY.

 

And if they get Red5 running then that will be good. the companies that put up all that capital to get REd 5 running again want their capital back at some time....and don't want to wait forever. But for now...the company has no debt. Just expenses.

 

Staff has been let go, so expenses are not lost there, however, there is still care and maintenance and that can add up on a property that is constantly filling with water. (I have seen this with my own eyes....having visited the mine a couple years ago)

 

merc

 

 

 

[tophat21]

Thanks Merc, From Tophat.