Red 5 (ASX: $RED) March 2024 Quarterly Report

Red 5 Limited (ASX: $RED) has reported a solid performance in the March 2024 quarter, with 50,132 ounces of gold produced, positioning the company to deliver at the top end of its FY24 production guidance of 195,000 - 215,000 ounces. The company's all-in sustaining cost (AISC) for the quarter was A$1,926/oz, and it has reduced its net debt position by $7 million to $42.5 million at the end of March 2024.

Executive Commentary on March 2024 Quarterly Performance

The March Quarter marked another solid period of consistent delivery by the Red 5 team and our fourth successive quarter of production above 50,000 ounces. While we are pleased to see the TRIFR continue to reduce, we did record two lost time injuries during the March Quarter. The lost time injuries serve to remind us that, while our safety performance has improved, we must remain vigilant and continue the front-line leadership safety focus. Production at the KOTH Hub was impacted during the quarter by a planned SAG mill reline in March and unplanned downtime in February relating to a SAG mill lube system fault, which reduced overall mill utilisation. Mining and processing operations also experienced minor impacts from short outages which reflected some of the extreme heat and rainfall events experienced during the quarter. With no further major shutdowns planned for the rest of the financial year, Red 5 is firmly on track to achieve the top end of the published FY24 production guidance range of 195,000 - 215,000 ounces, at an AISC of A$1,850 - A$2,100 per ounce.

Summary of March 2024 Quarterly Report

Red 5 Limited has reported a solid performance in the March 2024 quarter, with 50,132 ounces of gold produced, positioning the company to deliver at the top end of its FY24 production guidance of 195,000 - 215,000 ounces. The company's all-in sustaining cost (AISC) for the quarter was A$1,926/oz, and it has reduced its net debt position by $7 million to $42.5 million at the end of March 2024. Red 5's proposed merger with Silver Lake Resources Limited is expected to create a diversified, leading mid-tier gold company with a strong balance sheet to pursue growth. The merger is subject to approval by Silver Lake shareholders at a Scheme Meeting expected to be held in late May 2024, with completion anticipated before the end of the 2024 financial year. The combined entity is projected to have a combined gold production profile of ~445koz pa for FY24, with a significant Ore Reserve and Mineral Resource inventory of 4.0 million ounces and 12.4 million ounces, respectively. Red 5's consistent operational performance in FY24 to date has underpinned the decision to invest additional growth capital spend to $50-53 million for FY24, primarily on accelerated waste stripping in Stage 2 of the KOTH open pit, to further de-risk future ore supplies by advancing the pre-strip mining in Stage 2.