EUROZ HARTLEYWe think RXL is fundamentally undervalued, and now is the time to get a position into the stock as the company moves toward a production outcome.
Well-funded with $57m in cash to see through initial development and pre-production works, we maintain our Speculative Buy but increase our PT to $0.52/share.
Junior miners trade low because they are heavily exposed to completion risk.
But Rox is well ahead of the pack as the lowest-risk junior on the development pathway.
It says a lot that Rox can advance multiple work streams simultaneously for the DFS.
• Works for major Definitive Feasibility Study (DFS) work streams underway, including:
o Processing plant design
o Metallurgical test work (Albion ProcessTM)
o Geotechnical
o Hydrology/ hydrogeology
o Tailings dam design
That capability shows the expertise and competence of the work teams that CEO Wilding has assembled. It’s what you would expect from a billion-dollar Tier 1 gold miner, but in my decade of investing in junior gold companies, I’ve never seen it before.
Rox’s development pace is unprecedented in the junior gold space.
For example, Rox is already working with debt advisors to progress project financing.
It is very possible that the DFS, FID, and finance for restarting the Capex at the Youanmi mine could be delivered this year.
A contract for site infrastructure and mining will be sign off ready before financing.
2026 will see a frenzy of mine construction activity.
This is remarkable progress that the market is failing to recognise,
Target 51 cents a share according to Euroz Hartley’s and 61 cents is the target from Capital Markets, the latest research on the Rox Resources homepage.
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