Chart About to break upwards?, page-17

Wouldn’t say I have been a consistent believer, I’ve been extremely critical in the past. My belief is that the worst is behind them. I want the leverage of a high $A cost producer in my portfolio and a SLR offers this being a undervalued producer with a pretty stable, well understood operation. It is an option on the $A gold price. If in the next 6-12 months the operations don’t start producing good cashflow I’ll move somewhere else. I’m not intent on doing anything. I reassess all the time.

On RED, I held them many years ago somewhere around $1.50. They have had plenty of issues in Phillipines. Maybe going underground that changes but I’d be cautious believing cost forecasts. In WA they have purchased older operations that are high cost. KOTH was bought by SAR (who bought it from SBM) only a couple of years ago and they already on sold it. That is a warning sign. GoldFields have been trying to sell Darlot for a few years. These companies are not stupid and would’ve tried to make the mines profitable. RED will no doubt need to invest significantly to get anything like the production numbers you’re mentioning. See troubles of WPG over last 2 years.

RED is much more of a gamble than SLR at this point.