This is likely to be an exciting week for RED shareholders, as an announcement is imminent early in March (thus possibly this Friday announcement) of how Siana is going with respect to its first month of gold production. And interestingly RED share price is sitting close to its historic high gold price, reached intra-day of $2.60 at the time of the heady days in late 2003 when RED was being courted by AngloGold for a position within some of its exploration areas about Siana.
We know that first gold was poured on Feb 3, thus almost an entire month of gold production has occurred, but given that they are still going through a ramp up phase of production from the pit and processing its unlikely Siana has reached anywhere near the top of its processing capacity at this early stage. But this first month of gold production is likely to provide much confidence for the big insto following that RED enjoys, hopefully to start building bigger positions within the company. If that is to occur, and that is speculation, we could see the historic high of $2.60 topped, but first of all its necessary to break through the more recent resistance levels of $2.30's that has held sway for traders to make cash as it has range traded in more recent times.
I have no doubt that with the months to follow of increasing gold production we will see the $2.60 finally breached and a move towards and beyond $3.00 is likely. I hope we see new highs made earlier than later, as it is likely to finally break to trader view that RED is a range bound stock, and as Mgm1a put it, following a transformation path similar to that enjoyed by RRL. I think his analogy was well made and I look forward to RED finally beginning to show share price performance that us longer term shareholders have been waiting for, for so long!
Ok RED, now its your turn, up, up and away!!!