Rox a billion dollar company, page-258

.Ramelius Resources underwater today on disappointing results featuring an AISC blow out.



Labour and haulage costs are mentioned but the underlying problem is that RMS has a low grade resource requiring a huge tonnage or ore to be hauled to large mills and processed. The results announced today will be followed by many other gold miners that also have a low grade resource.


Rox has nearly 2.2Moz Au at ~7g/t Au in the Deeps and more with the latest ann.
Rox's Near Surface Resource (1m -1.5m ozs Au imo) will be at a grade more than double RMS's.
The AISC of that shallow, oxide free milling gold will be no more than $1000 oz Au and probably more like $850 oz Au.
At a time of soaring costs, miners will high grade resources have a big advantage - a smaller mill, lower Capex. lower haulage and labour costs.
All these savings compound to produce a much higher AISC margin and profitability.
Rox has a rare combination of a large high grade resource, existing infrastructure including a decline, on a disturbed site and the financial backing of Hawke's Point.