We recently visited RED’s King of the Hills operation. The trip included viewing both the open pit and underground mines and the surface process plant and power infrastructure. Our key takeaways from the tour were the scale of the operation, which provides RED with flexibility to expand production in stages. The ground conditions of the underground were materially better than we had anticipated. We reiterate our BUY rating on RED and lift our price target 9% to A$0.50 to reflect a four-year extension of the King of the Hills underground vs our previous estimates and a 10% increase in mill throughput and reiterate our BUY rating. Progress on the proposed merger with Silver Lake Resources
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