Rox won’t need to raise cash until FID?
But that doesn’t mean there will be no more dilution this year.
We are entering a period of intense jockeying for market share of the billion dollar company that Rox is destined to become.
Regardless of the dilution to come we will all do well but following is how I see the competitors for a bigger slice of Rox.
Hawke’s Point including options on about 22% will not be happy with that share.
Over at Ora Banda they are on 36% and they will pressure the Rox Board to give them at least 10% more.
Stoitis, Mair and Dennis on the Rox Board will agree to it.
That’s got nothing to do with Rox needing the cash and everything to do with increasing the share of the major stakeholder.
Venus CEO and Rox Director Matt Hogan will come out fighting for the same share to be issued to Venus and Q Gold.
Hogan may succeed but will hopefully be outvoted.
He has been placated with a Youanmi off-take agreement for Bell Chambers but will still argue for more cheap Rox shares.
Led by Dennis, the chair during the Grace, visible gold and Paddy’s Lode fiascos, directors are guaranteed generous free share bonuses for delivering the DFS and FID but will also want more.
Rox Board meetings will be interesting this year.
One positive is that as the share price increases this year, the diluting CR share price will be higher.
But the bottom line is that Rox will not just print more shares and dilute our holdings to get extra cash as needed.,
They will do so to increase the stakes and profits of the major holders and Rox insiders.
Retail owns about half the shares but that does not translate into Board representation.
Some years ago Mr Jackson self-nominated for the Rox Board to represent retail holders but was rejected.
After the recent CR at 14 cents that largely excluded retail, the need for our voice on the Board has never been more obvious.
Another self-nomination as a director might be better received in the AGM vote this year if anyone is interested.
No special qualifications are needed.
My opinion
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