Some good news but a long road ahead. Still about 10 quarters of debt to pay if they keep going at this rate. So RED5 won't be debt free until maybe end of FY24. No update on that huge hedge book or whether they delivered some ounces into the hedges

Red5 up 11% to 0.295 and outperforming the rest of the gold sector. Approaching all time highs.

Wish I had this in my RL portfolio instead of my comp one.

Much of the recent share price action coming from strategic investment from SLR

Or maybe it could mean something more? Potential takeover perhaps after failing to acquire SBM's leonora operations?

Silver Lake Resources Limited (“Silver Lake” or the “Company”) wishes to advise that it has acquired approximately 383 million shares in ASX listed gold producer, Red 5 Limited (“Red 5”). The purchase represents approximately 11% of Red 5’s issued capital.

The acquisition of the holding in Red 5 is considered a strategic investment. Red 5 owns the King of the Hills operation and has an established broader footprint in the Leonora district in Western Australia. Silver Lake’s significant organically generated cash balance and forecast free cash flow provides it with the ability to move quickly on opportunities as and when they arise. Silver Lake will continue to make investment decisions and deploy capital into organic and external opportunities, consistent with its stated strategy to become a larger, lower cost and longer life business.

Although I don't look at gold miners that much, I can't ignore that Red5 looks like the only gold stock that has not followed the fall in the price of gold

However Red5 is working from a low base

Probably one reason is that they had positive operating cashflow for the quarter

The reserve size of KOTH is also double the size of Karlawinda

One negative is the cost of AISC ( around AUD 1837) due to the mix of Underground and Open Pit mining.

Another negative is the hedge book and debt.

Rough calc of the KOTH NAV is around $1.6bn AUD going by the AISC and average GP of $2860. This however does not include hedging or debt.

At the current market cap of $650m this seems materially undervalued but lots of things need to happen for a rerate a few being consistent production and cashflows and paying down debt quickly.