Agree, Redsand20, the new MD needs to reset the Rox culture of overpromising and underdelivering that has inflicted a lot of reputational damage over the years.
For example, they are talking up production of well over 100K oz Au PA when what they have right now in the mining plan is more like 70K oz Au PA.
The delay, capex needed, and share dilution to reach their target will almost certainly disappoint.
What’s wrong with 70K oz Au PA??
Absolutely nothing!
With the soaring price of gold ($3,844 oz today and a strong bet to hit $4,000 and beyond), it will generate a tsunami of cash.
The free cash flow will pay for exploration without diluting the share registry.
Rox can learn from Meeka Metals (MEK), with a smaller, lower grade reserve than Rox but getting into production fast with their modest mining plan based on what they have in JORC-compliant indicated and measured gold ozs rather than what they dream of having.
They are also not splashing out at every opportunity with free shares for highly paid management while the share price crashes.
MEK share price 51 cps partly because of their modest and disciplined approach. RXL is on the canvas at 14 cps as gold fever lights up the sector.
Looking to the future, the upcoming drill results are likely to be excellent and perhaps spectacular.
A new, very experienced MD plus Mr Metallurgy on the Board, exciting drill results, more gold in the DFS mining plan and the gold price soaring make Rox a strong bet to join the other goldies in the sector re-rate.
RXL Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
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