Sign up Australia
Proactive Investors - Run By Investors For Investors

Red 5 delivers maiden gold production ahead of consolidation strategy

Red 5 had cash and gold bullion of $21.8 million at the end of the half year.
Cash and gold
Gold sales were 16,150 ounces at an all in sustaining cost of A$1,291 per ounce.

Red 5 Limited (ASX:RED) has transitioned from gold explorer to producer as evidenced in its result for the six months to 31 December 2017.

During this period the company achieved a strong maiden production performance from the Darlot operations in the Eastern Goldfields of Western Australia.

Gold sales were 16,150 ounces at an all in sustaining cost of A$1,291 per ounce.

Cash and bullion of $21.8 million

Red 5 had cash and gold bullion of $21.8 million at the end of the half year.

The robust cash position at the end of December 2017 was driven by a strong quarterly performance from the newly acquired Darlot mining operations.

READ: Red 5 provides maiden gold production guidance for 2018

While plant issues will stifle March quarter production, management is expecting that it will be in a range between 12,000 ounces and 15,000 ounces.

Underground development began at the King of the Hills project in January 2018 using experienced underground mining contractors, Pit N Portal Mining Services.

Resource definition work starts

Resource definition work has also started this quarter at Darlot and King of the Hills.

This work will potentially increase costs for the next two quarters.

Mark Williams, managing director, said: “We are encouraged by the performance of the Darlot operation and confident in our Eastern Goldfields consolidation strategy.”

“This should maximise throughput at the Darlot mill by processing ore from both the Darlot and King of the Hills underground mining operations.

“Stage II of the strategy will centre on increasing the reserve and resource base in the Eastern Goldfields through regional exploration within the 25,700-hectare tenement footprint acquired under the Darlot and King of the Hills transactions.

“Assessing additional opportunities”

"It will also see the company assessing additional business development opportunities which we are executing.

“This was recently demonstrated from our announcement of the intention to make a conditional off-market takeover bid for all fully paid ordinary shares in Bullseye Mining Limited.”

Red 5 continues to pursue other acquisition opportunities in areas surrounding its core assets.

It is also advancing permitting approvals for the Siana Gold Project in the Philippines.

View full RED profile View Profile

Red 5 Ltd Timeline

December 31 2012

Related Articles

Pioneer Resources: Access latest PPT from Proactive's CEO Sessions
June 19 2017
David Crook talked cash from caesium with investors.
June 24 2017
There is of course a big buzz around lithium these days...
Underground mining in action
March 07 2018
A recent debt and equity restructure has set the company up to explore growth opportunities.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use