America’s Vanguard Group takes substantial stake in Red 5

One of the world’s largest investment funds, the Vanguard Group, has acquired a substantial stake in Australian gold producer Red 5 (ASX:RED).

Pennsylvania-headquartered Vanguard manages around US$8 trillion ($11.8 trillion) in funds and over 50 million investors. The firm has launched 423 funds globally over the years, with over 200 of them outside of the US. Vanguard is owned by its member funds, which in turn are owned by fund shareholders.

Following a series of transactions undertaken between 15 March and 5 July 2024, Vanguard has amassed a 5% interest in Red 5 with a holding of over 340 million shares.

Red 5, which has a market capitalisation of $2.78 billion, reported earlier this week preliminary group sales for the June quarter of 110,818 ounces of gold and 165 tonnes of copper. 

Sales for the 2024 financial year amounted to 455,259 ounces of gold and 1,037 tonnes of copper.

Gold sales from the Western Australian operations reached 110,818 ounces and 447,454 ounces for the quarter and FY24 year respectively. 

Red 5 says the King of the Hills, Mount Monger and Deflector operations all met or exceeded their respective sales guidance ranges.

The company finalised the acquisition of fellow gold miner Silver Lake Resources in early June 2024.

At the end of June, Red 5 had cash and bullion of $453.7 million and debt of $92.9 million. Subsequent to the end of the quarter, the company cleared its outstanding debt.

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Written By Angela East
Managing Editor Angela East is an experienced business journalist and editor with over 15 years spent covering the resources and construction sectors and more recently working as a communications specialist handling media relations for junior resources companies.