RED - Red 5 Limited

[Uncle Festivus]

Symbol RED
Issuer Name RED 5 LIMITED
Security Description ORDINARY FULLY PAID
GICS Sector Materials
Last Price $0.082 Todays Movement 0.011 15.49%
Last Traded 14/09/2007 10:44:28 AM

Security Details
Symbol RED ISIN AU000000RED3
Issuer Name RED 5 LIMITED
Security Description ORDINARY FULLY PAID Web Site http://www.red5limited.com
Issuer Type Mining (M)
Security Type Ordinary (1)
GICS Sector Materials GICS Industry Group Materials
GICS Industry Metals & Mining
GICS Sub Industry Withheld by ASX
GICS Code 15104000 Issuing Currency Dollars (Australia)
Index Participation Does not participate in an index
Quoted Security Quoted and Tradable
Short Sell Status Security cannot be short sold
CHESS Eligibility CHESS eligible

Fundamentals
Total Class Issue 309,288,043
Market Capitalisation $25,361,620
Asset Backing $0.00 Earnings Rate Per Share -$0.0051
Earnings Yield N/A
Price/Earnings Ratio N/A
Paid Up Value $0.0000
52week High/Low 0.130 / 0.070

Substantial Shareholders

Mathews Capital Partners 19.5%
AngloGold Ashanti Australia Limited 13.0%

-------------

Main project - Sianna, Philippines
Open pit Jorc Resource - 340Kozs Au, 870Kozs Ag
Combined inferred resources open pit + undergound - 720kozs Au, 1.34Mozs Ag
Total Ind & Inf - 1Moz Au, 2.2Moz Ag

Cash costs/oz - $US392

[golfmos123]

Thanks Uncle F,

Do you want to let us know why you posted all the details but without anything personal from you?? Why the interest in this one??

I made some money trading this one a long while back when it was hovering in the 10-12s type area but haven't looked at it since. I'm interested to hear other thoughts on it too....

[Uncle Festivus]

Thanks Uncle F,

Do you want to let us know why you posted all the details but without anything personal from you?? Why the interest in this one??

I made some money trading this one a long while back when it was hovering in the 10-12s type area but haven't looked at it since. I'm interested to hear other thoughts on it too....

A bit of a work in progress, I ran out of time to update with more details.
From their reports they are getting close to giving the go ahead to mine. Only one problem maybe - raising the $60m odd to buy the plant. In this climate it could go either way - if their fundamentals are compelling enough for financial backing then it's game on for a 10-12 year gold/silver & copper mine.

There is also the close proximity to Anglo America-PhilEx Joint Venture's Boyongan copper-gold deposit (15moz) also, who may or may not be looking to expand/merge/takeover.

Just one to keep on the watchlist around this price (7-8c) maybe?

[Uncle Festivus]

Announcement out today, progress towards funds for Siana project.

[Fab]

I noticed this company being mentioned this week in the Eureka report as one of many potential takeover target company. I am wondering if someone has been following it and what are they doing exactly ??

[Miner]

If I could add : Last Saturday there was a big advertisement from RED (through a head hunterI in Wester Australia asking for a snr project manager for its plant engineering and set up by 2009. With normal standard such positions are asked at a reasonable closer time of execution.
It is a good sign. For example there are many exploration type companies like Poseidon who do not have any project manager visible.
With the price it is a good speculative buy. I am keeping watch for a low price to strike.

Regards

[Fab]

Indeed I see them as a good speculative buy. I bought SDL recently @0.13 and they did very well. I am looking for another one like that Are they only a gold miner ? I think if Charlie Aiktens mentions them in the Eureka report as a potention takeover target they must be worth a look

[Uncle Festivus]

Indeed I see them as a good speculative buy. I bought SDL recently @0.13 and they did very well. I am looking for another one like that Are they only a gold miner ? I think if Charlie Aiktens mentions them in the Eureka report as a potention takeover target they must be worth a look

Fab, some data already posted in previous posts re what they mine and a reason for takeover; as well as having a look at the company website.
Summary - a lot of the ground work already done, need money to mine, could be swallowed up by neighbour eg Anglo America-PhilEx Joint Venture??

[Uncle Festivus]

Up over 110% since first post, but now looks to be in holding/consolidating mode since hitting resistance @15c. Some excellent grades from the recent drill holes, more to come. Resource upgrade potential.

[Uncle Festivus]

Update

30/11/07 - Substantial shareholder notice from CBA - 7.6%

Drilling to complete in Jan 08. Past results include 7 metres at 11.7g/t gold and 5.8% zinc.

[alphman]

Shares: 659,288,043
Last Sale: $0.090
Market Cap: $59,335,924
Cash: $33,056,000

Siana Gold Project, Phillipines

Resources: 6,263,000t @ 5.30g/t Au for 1,057,000oz Au (incl. 2,183,000oz Ag @ 8.6g/t)

EV/oz: $24.86 (Au only)

Societe Generale CIB mandated for US$42m senior debt financing. Equity financing completed with 350m shares issued at $0.10. LOM cash costs for Siana Project is $309/oz based on approved "accelerated case" for initial 65,000oz+ open pit operation, increasing to 100,000oz+ with underground resource. Currently drilling underground resource to 60% indicated status as required for debt draw down. Results and updated resource statement due shortly.

From their quarterly report:

The BFS estimates of the financial returns for Siana were based on gold and silver prices of US$650 and $13 per ounce respectively. Since then precious metal prices have continued to increase.

At a price of US$850 per ounce of gold the pre-tax NPV (at 8%) is US$208M (an increase of 91%) with an internal rate of return of 83% (an increase of 73%).

Current spot prices for gold and silver are approximately $US$900 and US$17 respectively which should add more flavour to the project financials. Not sure what's holding this one back. IMO, one of the cheapest goldies out there at this stage of the game.

[cuttlefish]

I think everyone will feel more comfortable when they actually hold the title to the project - the transfer from the old JV partner has been in the wings for quite a long time now and still isn't complete - still working through the bureacratic machinery. (environmental approvals yet to be completed as well).

[Uncle Festivus]

Not withstanding a further marked deterioration in equity markets generally, I would not foresee a retest of the previous lows from Sept 07 around 7c, due to the advancement of the project and pm commodity fundamentals if anything. 9c has been a solid support level even without the current more favourable project status ie looks to be still heavily discounted?

We need the last few hurdles to be overcome as per cuttlefish and continuing support for the gold price, then she may be re rated. Those out of the money 10c'ers must have seen some upside for their investment, as long as they don't get cold feet and exit any time soon.

[Uncle Festivus]

The huge volumes can now be attributed to ANZ Nominees taking a 20% stake through Matthews by the looks. Not sure if that's good or bad with ANZ atm?
Something could be up with the permits as increased activity recently suggests? A Bollinger breakout perhaps?

[Uncle Festivus]

Progress continues, looks like title transfer a step closer.

Siana Gold project, philippines
• Title transfer to Merrill Crowe Corporation completed,
transfer to Red 5 operating company in progress.
• Selected pre-development capital activities approved
including mine road permitting and final power negotiations.
• Initial underground resource upgrade programme nearing
completion - includes 2 metres at 18.6 g/t and 6.3% Zn,
7 metres at 9.8 g/t and 1.1% Zn, 2 metres at 25.6 g/t and
2.2% Zn, and 7 metres at 7.3 g/t and 4.2% Zn. Additional
holes planned.
• Final open pit mine equipment and design optimisation
well advanced.
• Construction manager, Warren Mathews appointed.
• Environmental Impact Statement on schedule for
mid-May 2008 submission.
Mapawa MpSA and Jv
• All required documentation submitted and grant awaited.
Finance and corporate
• Société Générale bank syndicate (total four banks) confirms
indicative term sheet for Siana development.
• Net cash position $31.9 million (unaudited).

Société Générale bank syndicate provides indicative term
sheet for Siana debt funding.

Société Générale Corporate and Investment Banking and three
other international resource focused banks have confirmed an
essentially unchanged indicative debt funding package for
Siana development.

The indicative term sheet identifies minor increases to fees and margins
as would be anticipated in the current debt financing environment.

The size of the facility and the loan amortisation schedule are unchanged.

[Uncle Festivus]

An update of the chart with some interest shown today, nice breakout?

[MRC & Co]

You lucky cat if you were onboard! Unfortunately, I wasn't! Was thinking of putting this in the bottom drawer, but already have 3 of those and don't really want anymore with the markets too strong at the moment, something has to give!

Some resistance at 11.5 which was tested before failing so far today.

[alphman]

Number of shares: 659,288,043
Last Sale: $0.047

Market Cap: $30,986,538

Cash: $30,614,000


The market today has effectively valued the 1moz (yes, 1moz!) Siana Gold project at $350k. That's 35c/oz of gold. Ridiculous! Absolutely ridiculous! Who in their right state of mind would sell so close to the cash asset backing??????


DYOR

http://www.red5limited.com/

[alphman]

One to watch guys. Today's close of 3.8c gives RED a market cap of $25 million while their cash asset is 4.6c per share ($30 million). Ridiculous.

[Uncle Festivus]

Some movement today on upgrade of resources.

Underground Resource increased to 3.4 million tonnes at 7.1 g/t
gold (0.77 million ounces) and 10.7 g/t silver (1.16 million ounces),
up 11 percent. Includes inaugural Indicated Resource category.
Combined underground and open pit Resources now 6.7 million
tonnes at 5.2 g/t gold (1.1 milllion ounces)
Project Indicated Resource increased by 127 percent (gold ounces)
and 63 percent (tonnage)
Indicated Resource represents 77% of total Resource tonnage
and 69% of gold Resource ounces