Red 5 is an emerging gold producer with an attractive gold project in Mindanao, in the southern island of the Philippines. The company has raised the equity component to debt finance mine construction. The much higher gold price and any weakness in the $A will have a positive impact on its future earnings. The project should start to generate cashflows in about a year. There is of course the prospect of locking in the higher gold prices that are likely to arise by then.
There is a strong upward sloping trendline offering support at 8c, and a strong horizontal support at 9c.
Join my discussion on Red at Google Finance Forum.
Join my discussion on Red at Google Finance Forum.
- Andrew Sheldon www.sheldonthinks.com
No comments:
Post a Comment