It was reassuring to hear MD Rob Ryan restate the June PFS...

It was reassuring to hear MD Rob Ryan restate the June PFS target date, confirming that it is on track.

Re the discussion here about the refractory ore at Youanmi: PFS metallurgic results are important but not critical to the viability of the Youanmi Gold Project. Ultra Fine Grinding and oxidisation at a PFS level to produce gold bullion is a preferred option and in the live presentation Rob Ryan mentions again that refractory gold processing has seen significant developments recently.

Even if this is not supported for the DFS, Rox will progress the concentrate route as per the 2022 Scoping Study. Both pathways will generate a free cash flow based on a production of around 100K oz gold a year. An AISC margin of at least AU1,500 oz Au is likely by the time Rox gets into production. That’s a free cash flow of around $150m PA. Confidence in the price of gold in the future is boosted by analysis (eg *****) that the West has lost control over the price of gold and a gold Super cycle is underway that will last for many years.

Following the PFS, Rox will launch a large drilling campaign to add more gold to the Reserve through infill and exploration drilling, at Link and Currans, Paddy’s, Midway etc

This will need funding and Rob said there is interest in the non core asset Fisher Gold as would be expected with the POG soaring. It’s likely Rox will be able to sell Fisher rather than dilute the share registry by issuing more shares.

Interesting that the lithium deposit is not regarded as a non-core asset indicating that Rox will conduct further exploration.

I see our neighbour Ramelius had a free cash flow of $150m in the last quarter and has $407m in cash and gold. Rox has market cap today of around $68m. Good idea to not release the Youanmi metallurgy results early.