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Silver Lake Resources the accumulator of approx. 11% of Red 5 stock.
VAU - Vault Minerals
- Thread starter Uncle Festivus
- Start date
Sean K
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It's like a game of musical chairs.
But, those of us who have been following full time and not made a bet should hang our heads in shame.
Silver Lake Resources has kicked off a new wave of jostling over the rich Leonora gold district in WA, snaring an 11 per cent stake in Red 5 in a surprise raid on the gold producer.
As revealed in The Australian’s DataRoom column on Monday, Silver Lake snared its stake at a slight premium to Red 5’s last trading price, building a big enough stake in the gold producer to either launch a future move – or to block an alternative offer from a rival gold player such as Genesis Minerals.
The surprise raid was launched as the bulk of the world’s gold sector meets in Colorado in the US for the annual Denver Gold Conference – Silver Lake is the only one of the major producers in the Leonora region that is not presenting at the conference. Red 5 is due to present overnight, Australian time, with Genesis presenting the following day.
Sean K
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Any guesses what happens from here? Does Silver make a full TO offer or does Genesis ask for their parcel and take them over. Surely this is not just a strategic investment or blocking stake with no strategic plan for RED to be absorbed into one or the other?
Good morning
Had been reported Gresham Partners were engaged by RED as a defense adviser .... Red 5 doesn't appear to have any appetite to open up the business for anyone who wants to have a look ... with two already in a makeshift tent
Have a very nice week.
Kind regards
rcw1
Sean K
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Looks like punters are assuming this gets taken out at some sort of premium.
Dona Ferentes
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some commentary.
.
Shares in emerging WA gold miner Red 5 (ASX:RED) jumped to a 52-week high of 33 cents yesterday after the company's annual meeting heard an update forecast from the new chair, Russell Clark.
Red 5 shares climbed a solid 8% at one stage after the meeting heard Mr. Clark forecast that the company would exceed guidance for gold production from its still-growing King of The Hills mine in WA's Leonora gold district.
The company's KOTH mine is now operating at an annualized throughput rate of up to 5.5 million tonnes per annum. Mr. Clark said this is almost 40 percent above its nameplate design capacity.
"This firmly establishes King of the Hills as the largest and lowest-cost processing hub in the Leonora district. It provides a clear indication of the large scale and potential of this outstanding asset," he said.
The mine produced 55,009 ounces of gold in the three months to September (June Quarter: 61,705 ounces) at an all-in sustaining cost (AISC) of $A1,696/oz. Quarterly gold sales were 54,383 ounces (June Quarter: 58,960 ounces), resulting in operating cash flows of $43.8 million for the September Quarter.
"Our production performance this financial year puts us firmly on track to achieve the top end of our forecast production guidance for the 2024 Financial Year, which is between 195,000 and 215,000 ounces of gold," Mr. Clark stated.
"In addition, the strong cash flow generation from our mining operations has enabled the company to reduce its debt, with the King of the Hills debt facility reduced from $175 million at the end of the 2022 financial year to $112.8 million at the end of the September Quarter. Red 5's net debt position stood at $68.2 million at the end of September, with $44.6 million held in cash and bullion.
"These collective achievements have been appropriately reflected in a steady increase in the company's market capitalization over the course of the year, to well over $1 billion, supported by a robust gold price environment.
"Given the quality of our assets, I have little doubt that there is additional room for growth in this regard, provided we continue to deliver on our undertakings to the market.
"The quality of King of the Hills has certainly attracted the attention of our peers, and we welcome the addition of Silver Lake Resources Limited onto the register as our new largest shareholder."
.
Shares in emerging WA gold miner Red 5 (ASX:RED) jumped to a 52-week high of 33 cents yesterday after the company's annual meeting heard an update forecast from the new chair, Russell Clark.
Red 5 shares climbed a solid 8% at one stage after the meeting heard Mr. Clark forecast that the company would exceed guidance for gold production from its still-growing King of The Hills mine in WA's Leonora gold district.
The company's KOTH mine is now operating at an annualized throughput rate of up to 5.5 million tonnes per annum. Mr. Clark said this is almost 40 percent above its nameplate design capacity.
"This firmly establishes King of the Hills as the largest and lowest-cost processing hub in the Leonora district. It provides a clear indication of the large scale and potential of this outstanding asset," he said.
The mine produced 55,009 ounces of gold in the three months to September (June Quarter: 61,705 ounces) at an all-in sustaining cost (AISC) of $A1,696/oz. Quarterly gold sales were 54,383 ounces (June Quarter: 58,960 ounces), resulting in operating cash flows of $43.8 million for the September Quarter.
"Our production performance this financial year puts us firmly on track to achieve the top end of our forecast production guidance for the 2024 Financial Year, which is between 195,000 and 215,000 ounces of gold," Mr. Clark stated.
"In addition, the strong cash flow generation from our mining operations has enabled the company to reduce its debt, with the King of the Hills debt facility reduced from $175 million at the end of the 2022 financial year to $112.8 million at the end of the September Quarter. Red 5's net debt position stood at $68.2 million at the end of September, with $44.6 million held in cash and bullion.
"These collective achievements have been appropriately reflected in a steady increase in the company's market capitalization over the course of the year, to well over $1 billion, supported by a robust gold price environment.
"Given the quality of our assets, I have little doubt that there is additional room for growth in this regard, provided we continue to deliver on our undertakings to the market.
"The quality of King of the Hills has certainly attracted the attention of our peers, and we welcome the addition of Silver Lake Resources Limited onto the register as our new largest shareholder."
bux2000
"Don't rely on your memory.....just write a bl**dy
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I have picked RED this month for the December stock pick.
My reason is the steady uptrend on a daily chart and it appears to have broken previous resistance on a weekly chart.
Does that sound like I know what I am talking about or what ?????.......but the Tradingview Screener sees it as a Strong Buy..........so what the hell 
bux
PS just looking at this mornings charts.......perhaps I should have stuck with Uranium.
My reason is the steady uptrend on a daily chart and it appears to have broken previous resistance on a weekly chart.
Does that sound like I know what I am talking about or what ?????.......but the Tradingview Screener sees it as a Strong Buy..........so what the hell
bux
PS just looking at this mornings charts.......perhaps I should have stuck with Uranium.
Last edited:
Sean K
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I have picked RED this month for the December stock pick.
My reason is the steady uptrend on a daily chart and it appears to have broken previous resistance on a weekly chart.
Does that sound like I know what I am talking about or what ?????.......but the Tradingview Screener sees it as a Strong Buy..........so what the hell
bux
PS just looking at this mornings charts.......perhaps I should have stuck with Uranium.
Gold having a healthy pause as expected. Just needs it to hold above $2030 at the end of US trading tonight and if it bounces from that could be a significant rise in gold, and RED, next month. POG has to stay above $2030 though.
Sean K
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Not sure why I never bought this. Probably because I'm already loaded with gold and was just topping up on what I've got. In retrospect, this would have been a very good addition a few months ago...
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BtL FInance mentioned on Sunday that Silverlake's stake in RED has doubled or something since they bought it.
Not Held
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I had a bad experience and realised the board members were absolute crooks years ago when they mined or pretended to in the Philippines.
Divested after nice loss and only traded them since.
Is and will remain in my blacklist for investment
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I was thinking the same until they got rid of the Philippines mine. They still struggled but IMO they turned for the better when they got KOTH finally producing gold.
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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.
View attachment 162047
I forgot to put it in here as well.
My apologies.
From the " Popping Festering Cankers" thread 5th September.
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Selected to gain value in 2024.
After a long struggle to get their King of The Hill gold mine started RED is already being rerated. RED will gain value if the POG rises as many pundits are tipping. There's another potential bonus for RED shareholders, a buyout or merger with another local miner.
After a long struggle to get their King of The Hill gold mine started RED is already being rerated. RED will gain value if the POG rises as many pundits are tipping. There's another potential bonus for RED shareholders, a buyout or merger with another local miner.
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GOOD LUCK!
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RED 5's price has drifted lower during Jan 24 as the price of gold drifts lower.
Dec Qtr report: Production is hitting goals and excess cash is being used to reduce debt (slowly). Net debt ~$50M (vs $68M Sept 22).
Pretty thin report with no updates on costs.
Dec Qtr report: Production is hitting goals and excess cash is being used to reduce debt (slowly). Net debt ~$50M (vs $68M Sept 22).
Pretty thin report with no updates on costs.
Dona Ferentes
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RED is in the green but SLR slipped
RED and SLR to merge.
-Each Silver Lake shareholder will receive 3.434 Red 5 shares for every Silver Lake share held
-Upon implementation of the transaction, Red 5 shareholders will own 51.7% of the merged entity and Silver Lake shareholders will own the remaining 48.3%
RED and SLR to merge.
-Each Silver Lake shareholder will receive 3.434 Red 5 shares for every Silver Lake share held
-Upon implementation of the transaction, Red 5 shareholders will own 51.7% of the merged entity and Silver Lake shareholders will own the remaining 48.3%
Sean K
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I'm still not sure what happens to one of your 2024 picks due to the takeover/merger, or whatever it is. Is it still RED?
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HY Financial Results 6 mths to Dec 23.
A strong operational performance from both the KOTH and Darlot gold mines (WA).
The merger of RED with SLR will now proceed in Mar/April. I haven't gone through the details of the merger myself. I'll watch the market to see how price reacts.
Note: Once this merger is done there's the possibility of another located nearby.
A strong operational performance from both the KOTH and Darlot gold mines (WA).
The merger of RED with SLR will now proceed in Mar/April. I haven't gone through the details of the merger myself. I'll watch the market to see how price reacts.
Note: Once this merger is done there's the possibility of another located nearby.
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March 2024 update: RED share price is now at yearly highs thanks to the gold price rally.
The chart looks very bullish with a cup and handle pattern promising higher prices.
The chart looks very bullish with a cup and handle pattern promising higher prices.