RXL

3.57%

13.5¢ rox resources limited

what i would like to know, and what wasn't clear in the resource...

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CashedUpBogun

8,284 Posts.

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01/06/24

13:35

Post #: 74117649
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Originally posted by smartdude: ↑

Predicting share prices is a very difficult task. Some general points which relate to small cap stocks:

- There a recency bias for stocks of about 15 minutes. AAR recently did a CR at $0.05, there was lots of moaning at the time, but now nobody even remembers that as the share price hit levels above $0.09 this week. This can also happen to RXL quite quickly.

- These low trading volume shares can move up and down quite materially with the smallest amount of buying or conversely selling pressure.

- The current selling (which is quite low) may include shares picked up for $0.165 simply to get access to the attached options? This type of selling will naturally dry up.

- Share prices often settle at or slightly below a CR price temporarily.

Realistically, the company has provided more than enough information to date to suggest that the PFS numbers will be positive. Once the data filters its way into the market, I would hope that this creates some ongoing buying pressure. Likewise I would expect all but desperate (those that need money to pay expenses) sellers will not be willing to sell at a low price like today’s. This share price could easily settle at above $0.25 in July. With the Management Performance Right share price hurdle of $0.25, I cynically expect the bag of tricks to come out after the PFS. Whether that will include disposal of non core assets or the like, time will tell? If the company can achieve a cash injection, that will naturally decrease the financing risk for the period up to the DFS and make the company a more attractive investment.

I do not expect VMC to sell shares. I believe their game is to take dilution hits but to hold their position. With Mr. Hogan as a Director of RXL, I would be surprised if he sold any of VMC’s shares.

This is a macro view that I hold rather than a RXL specific view, but some gold analysts are predicting $US 3,000 gold this year. If that happens, which I believe is quite feasible, I sense that stocks like RXL will play catch up and overshoot other players that have already moved (eg SLR may double but RXL may triple +). There is clearly a disconnect between market cap and value (which the PFS will highlight) and those disconnects never remain permanent.

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what i would like to know, and what wasn't clear in the resource update is how much oxide and transitional gold resource is available.
it's can't be too much, maybe grace has been written down to zero. but is it zero?
therefore can assume there is no opportunity to mine free milling ore and send it to a nearby mill (as long as the grade is sufficient to pay for it and there is a mill with spare capacity)
therefore again assuming there is no opportunity for early cashflow to support the project otherwise it would be noted.
am i right on this?

RXL Price at posting: 16.5¢ Sentiment: None Disclosure: Not Held
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(20min delay)
Last 13.5¢		Change -0.005(3.57%)		Mkt cap ! $55.17M

Open	High	Low	Value	Volume
14.0¢	14.0¢	13.5¢	$25.78K	189.2K

Buyers (Bids)

No.	Vol.	Price($)
2	11707	13.5¢

Sellers (Offers)

Price($)	Vol.	No.
14.0¢	67814	3

View Market Depth

No.	Vol.	Price($)
2	11707	0.135
9	709924	0.130
7	266280	0.125
8	1501008	0.120
2	18198	0.110

Price($)	Vol.	No.
0.140	17814	2
0.145	140000	2
0.150	164806	5
0.155	300972	6
0.160	361356	5

Last trade - 13.13pm 16/08/2024 (20 minute delay)

RXL (ASX) Chart

what i would like to know, and what wasn't clear in the resource...

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what i would like to know, and what wasn't clear in the resource...

Top Stories

Argent begins search for VMS mineralisation at Kempfield Cu-Pb-Zn-Au-Ag play in NSW

EIS co-funded campaign sees Miramar kick off maiden drilling at Bangemall, Gascoyne WA

IMDEX to receive $10M in out-of-court settlement with Boart Longyear over downhole tool patent

Victory Metals dips -8% even as company set to grow heavy REE resource at North Stanmore

Court of Appeal upholds environmental group's challenge to Silver Mines Ltd's Bowden project

EQ Resources transitions historic Mt Carbine tungsten mine to owner-operator system

Emerald & Azure score Digger & Dealer awards

Bitcoin: Current State of Play & Where to Next | Swyftx

Wellnex sees first special access scheme prescriptions for new Wellness Life brand

Week 33 Wrap: US recession fears forgotten; RBNZ’s surprise rate cut; more iron ore trouble

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News