Red 5 Ltd Shares Rise after Releasing Results (ASX:RED)

Red 5 Ltd Shares Rise after Releasing Results (ASX:RED)

The Red 5 Ltd [ASX:RED] released its full-year financial results today. Red 5 is an Australian gold producer with operations in Western Australia.

Red 5 shares its full year financial results.

For the financial year ending 30 June 2021, Red 5 sold 75,907 ounces, which brought in $173.4 million in revenues. Gross profits from operations came in at $2.3 million and Red 5 registered a net loss after tax of $9.5 million for the year.

Their Darlot processing plant processed 984,220 tonnes of ore, from which it recovered 76,104 ounces of gold.

Red 5’s Managing Director, Mark Williams had this to say:

The past financial year has been an important period of development, growth and operational transition for Red 5, laying the foundations for the Company to achieve its objective of becoming a leading mid-tier Australian gold producer. This will be underpinned by the successful development and delivery of what is expected to be Australia’s next major gold mine — our flagship King of the Hills (KOTH) project in WA’s Eastern Goldfields.

Looking ahead, our key focus is the completion and start-up of the KOTH Project and the implementation of our new Darlot mine plan and KOTH Hub Strategy. Together, this will see Red 5 elevated as a mid-tier gold producer and will mark the beginning of an exciting new chapter in our history.

The company is developing their fully owned King of the Hills (KOTH) project, which is located 28 km north of Leonora in the Eastern Goldfields. So far, Red 5 has invested $79.5 million on the development of KOTH and expects to produce its first gold by the middle of next year.

As of 30 June, Red 5 had $21.4 million in cash and bullion and another $28.5 million in restricted cash.

Share price slightly up after the announcement

Shares were up 2.38% at time of writing with shares trading at 21.5 cents.

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Selva Freigedo

The Daily Reckoning

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