RED has sold the A$137m of treasury shares it acquired through the merger with Silver Lake Resources. The sale processed will boost RED’s current cash and bullion balance to over A$500m, presenting a strong war chest to assess potential acquisitions or accelerate organic growth opportunities. We believe upgrading the process plant capacity at King of the Hills is the most prospective organic growth opportunity, with modest capital also likely to be deployed to re-start the Sugar Zone project in Canada. Further acquisitions now that the merger with Silver Lake Resources has been completed are also possible in our view. We lower our price target by 6% to A$0.51, reflecting the recent fall in spot prices and we reiterate our BUY rating.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
