A standout growth opportunity
Stock Code:
ASX: RED
Company Exposure:
Gold
Project Locations:
Australia
Red 5 Limited (ASX: RED) is an Australian gold producer which is well advanced on a growth trajectory to become one of the leading mid-tier gold producers on the ASX by the middle of 2022 with the commissioning of its new state-of-the-art 100%-owned King of the Hills gold mine in Western Australia’s Leonora region.
King of the Hills is a top-10 Australian gold project with a 16-year mine life, forecast production of 176koz pa and outstanding economic and financial returns.
Red 5’s existing production comes from the 100%-owned Darlot Gold Mine (FY22 guidance: 62- 72koz), which will transition to become a source of satellite ore feed to the new 4.7Mtpa King of the Hills process plant next year.
Red 5 has a strong balance sheet, a Tier 1 project finance debt facility (with Macquarie Bank, BNP Paribas, and HSBC) and is delivering positive cash flow to fund its ongoing exploration and growth programs.
Investment Highlights
- Construction of a stand-alone bulk open-pit and underground mining and processing operation at King of the Hills – 4.12Moz Resource and 2.4Moz Ore Reserve
- Australia’s next major gold mine is forecast to produce first gold in June Quarter 2022, and is expected to produce over 200koz pa for the next 16 years
- Located in one of the world’s most attractive gold regions
- Sale complete for Siana Gold Project in the Philippines – US$19M cash received & US$36M NSR royalty
- Extensive exploration potential at both Darlot and King of the Hills
- Experienced leadership team with a unique project development skillset – management team are ex-Evolution, Glencore, Xstrata
