Ann: Entitlement offer to raise up to $7.62 million, page-109

In Jan 2022 the market value of Rox was $77m and the share price was 49 cps.

There were 157.6m shares.

Today, the market valuation is around $55m and the share price is 13.5 cps.

There are now 407m shares so a lot of dilution.

But since Jan 2022 Rox has made significant progress:

Rox moved to 100% ownership of almost all of Youanmi

Announced outstanding very high-grade MRE as the basis for the PFS.

Rox pointed to high Mining Reserve growth prospects for the DFS.

The company announced outstanding metallurgy recovery rates ahead of the PFS (previously a key risk).

The PFS is imminent.

The assumed price of gold in the PFS can safely be at least $500 oz Au higher than in the Scoping Study.

We have all seen and heard Refractory Rob crush the myth that Youanmi can’t be a great money maker.

We watched his impressive presentation that convincingly detailed a future free cash flow that should be at least $100m PA.

But despite these positives, the market valuation has not kept pace with the share dilution. If the market valuation had remained the same as Jan 2022, the current share price would be close to 20 cps. Rox should be valued at $100m+ with a share price of 25 cents+. But, despite the positive news flow, the number of shares has more than doubled since 2022 while the market valuation has been falling sharply with a share price currently near a 10-year low.

Is Rox a bargain or a value trap?

My opinion