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Capital raising for a West Aussie gold miner... How predictable, at 13.5 cps...ouch! Nearly 4 year lows? At record high gold prices? The only thing that could surprise me less is if genesis/saracen 2.0 take them over.
They just raised capital less than 6 months ago as well and said KOTH was completed on time and on budgetInteresting use of language... Construction is complete - but the mine still not able to support 'steady state' mining without more money. Thought this is where they're supposed to be making profits for their long-suffering shareholders, paying dividends, printing cash hahaha. Where do they keep finding these suckers to invest?
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Anyone really surprised?There's a whiff surrounding this company. Some things don't add up. Their loans and hedging requirements look like they're over a barrel. Two significant CRs in the space of a few months just smells. 'Working capital' in the Dec quarter was $40m. That's a very nice coffee machine update.
RED - my aspiration for a silver spoon this time in March tipping
Who knows
.https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02635194-6A1137695?access_token=83ff96335c2d45a094df02a206a39ff4
Market always reacts with CR by junior miners without understanding they do not have huge cash to play but they do offer multiplied return .
So with 13.5 cents CR, I do believe the price will be good enough in March to bring my tip to the top unless my prediction comes true on 28th Feb and I am back to square . So strongly rampingto bring down the tip price as low as possible.
DNH
Hopefully the brokers will ramp up the price from 1 March to get all SPP fully or over subscribed by 21 March.
However without any bias, the challenge for RED is the low grade, low volume, low recovery and hence high AISC for an underground mine. Lets see how it goes. Reading stock specialist's technical analysis, it will be really a lotto win if RED goes first 10 in March
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Good afternoon peter2From Barry FitzGerald, Stockhead.com.au
Posting this to monitor RED's progress.
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I assume the recent cap raise will strengthen RED's position in the Leonora region anticipating further merger activity.
Are they going to get wrapped up by consolidation in the region?
That's the right question. Good performance and plenty of cash will have them in a better negotiating position.
Dare I say, it almost looks like it's about to break out....There's been several good trades available on RED since mentioned by the maestro last September.
Should be in the RED thread though I guess, it's a bit out of canker territory, price wise at least.
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Was it me, or was it the POG taking a dive last night...?!Dare I say, it almost looks like it's about to break out....
(there, I've put the mocha on to it...)
Not one I have held, it just never appealed to me.There were always suggestions that Raleigh Finlayson’s Genesis Minerals at some point would move in on fellow Western Australian gold miner Red 5.
Sources close to Genesis Minerals had suggested that any deal would be some time off, as the company works to integrate the recently acquired Australian assets of gold miner St Barbara.
But now that Red 5 has largely eliminated debt (its net debt is $81.9m) and is making money – its operations have been cashflow positive since March – some think a deal for the $1.6bn Genesis Minerals to buy the business makes sense sooner rather than later.
And perhaps shareholders think so too, because Red 5’s share price recently tracked higher and its market value is now at $830m. Its shares closed up 4 per cent on Thursday at 25c.
No one knows Red 5’s flagship asset, the King of the Hills mine and processing plant, better than Raleigh Finlayson who sold it to Red 5 for $16m in 2017 when he was running Saracen, now part of Northern Star.
On Thursday, Red 5 told the market there was a continued increase in resource confidence at King of the Hills, with a 185 per cent increase in open pit measured resources and a 102 per cent increase in underground indicated resources.
The business is highly strategic for Genesis Minerals, as its Leonora goldmining assets are close by in WA.
King of the Hills has 6 million tonnes of plant capacity at what is a $226m processing plant and can be expanded to about 7 million or 8 million.
Market sources believe that Red 5’s shareholders would support a buyout of the company that has been led by Mark Williams since 2014.
King of the Hills’ open pit and underground gold mine is located 28km north of Leonora and 80km south of the company’s underground Darlot satellite gold mine in the Eastern Goldfields of WA.
Genesis Minerals has its Leonora gold project, 30km south of Leonora. From St Barbara, it has purchased the Gwalia underground mine, 5km south of Leonora, the Leonora mill and Tower Hill project, Zoroastrian project and the Aphrodite and Harbour Lights projects.
Gwalia is currently producing more than 120,000 ounces of gold annually, while King of the Hills is expected to produce 200,000 ounces of gold per annum.
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