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Ann: Youanmi Gold Project - Positive Pre-Feasibility Study, page-21

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Corgi

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25/07/24

20:52

Post #: 74921354
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Originally posted by Sumit000: ↑

Canaccord’s analysis of the PFS price target 51 cps
https://www.roxresources.com.au/wp-content/uploads/2024/07/240725-Canaccord-Genuity.pdf
The Net Present Value (NPV) of the company is Rox $648m or $468m after tax with an 8% discount applied. The market valuation is just $53m. As Rox proceeds through the feasibility process the NPV and the market valuation will converge. When the DFS is released the NPV and the market valuation are both likely to be far higher. The price of gold also drives the NPV. Note that the assumed price of gold in the PFS is $3,100/oz, which is a 15% discount to the spot price today. Mo
st peers when announcing a FS use a discount of ~10%.
The Canaccord research cautions against the risk of dilution to raise funds for the upcoming drilling campaign. Rox needs to convert more inferred to indicated gold and it is typical for a PFS to have 20 to 30% Inferred in a LOM. The DFS will likely have 90%+ in Indicated
Keep in mind that Rox did not spend large sums of $$ last year on converting Inferred to Indicated and the results were outstanding.
Rox’s conversion rate from 1.1Moz Indicated Resource to ~ 0.55Moz or 50% in the Mine Plan is average for a mid-sized explorer. Items that affect the conversion are mining and economic parameters such as the cut-off grade is 3.0 g/t Au and the stope shapes applied at a minimum width of 2.5m.
Rox has come a long way since the Scoping Study.
The Scoping Study had 37% LOM Inferred Resources and 70koz pa of which Rox only had 70% or 49koz pa. Rox now has 100% of 100kozpa.
Within 2 weeks Rox will commence its drilling campaign at the targets shown below. Much of this will be infill drilling but includes unexplored and underexplored near mine areas including Paddy’s that may surprise on the upside.

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"The Canaccord research cautions against the risk of dilution to raise funds for the upcoming drilling campaign."

RED FLAGS

Another Cap Raise early 2025...

When will it stop?

RXL Price at posting: 13.3¢ Sentiment: Sell Disclosure: Not Held
1 Upvote

0 Great analysis

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Ann: Youanmi Gold Project - Positive Pre-Feasibility Study, page-21

Buxton projects new graphite province discovery at WA Narryer play

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

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Cokal upgrades infrastructure for BBM ramp-up in Indonesia

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

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Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

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Ann: Youanmi Gold Project - Positive Pre-Feasibility Study, page-21

Top Stories

Buxton projects new graphite province discovery at WA Narryer play

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

BCI reaches close of funding facility for salt-first part of Mardie project

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

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