$50m cash at the end of the last quarter is impressive.CEO Phill Wilding certainly knows how to get value for our money.
I expect his mining plan will also be low Capex.
A recent Expert Call from Petra Capital sees Youami pre-production costs at $300m, which is low for an underground mine.
I wouldn’t be surprised if Phill can reduce this even more.
Now for the MRE.
Both CEO’s Phill Wilding’s predecessors recklessly talked up MREs and feasibility studies. When the reality didn’t match the rhetoric the share price fell and investor confidence in the company diminished.
Phill tells us what he will deliver and does it and then promotes across multiple media.
He says we can expect the MRE to have a reasonable impact with a possible grade improvement.
Given that most of the MRE high grade increase will be able be added to the mining plan that is very positive for the share price going forward.
Keep in mind that every new oz of gold added to the mining plan makes around $3,000 profit so and extra 100,000 oz Au = $300m.
It could be a lot more. the World Gold Council reports that there is a growing consensus that trillions of new USA debt will push the gold price much higher even without a fiscal crisis (or a safe haven demand).
Discovery Alert posted that Strong interest from funding bodies exceeds Rox’s capital needs.
That means that the usual delay between a DFS and getting finance will be minimal.
Highly likely that Rox will post it’s Final Investment Decision immediately after the DFS and that will be followed by a debt financing agreement this year.
(20min delay)