The importance of remaining calm and rational Have you noticed how quiet it is on SH? Clearly, market psychology is in a sorry state. Whether you are a fan of cryptocurrency, technology, energy, gold or anything else, no one is spared. For some investors, this is a disaster.
Regarding the subject of this publication, I believe that we must indeed remain calm and rational. Beyond the consternation caused by the SP, the shareholders of Robex are in an enviable position for all of its fundamentals. All the upheavals observed in the financial markets reinforce the importance of having a portfolio made up of companies that generated profits such as Robex. After more than a year of preparatory work on the East Zone, operations at the Nampala site continue to improve by reducing stripping costs; the reduction of energy costs by the start-up of the solar power plant; the increase in production capacity and finally, by an increase in the gold grade.
At the top of the ladder, the administrative structure of Robex has been enriched with the arrival of Aurelien Bonneviot in January 2021 and Alain William last June. Regarding Augustin Rousselet, his responsibilities have evolved as a result of the acquisition of the Kiniero project in Guinea. If Aurelien Bonneviot and Benjamin Cohen have the merit of having reached an agreement with the Sycamore company, Mr Rousselet has for his part that of coordinating the preparatory work of Kiniero, in addition to ensuring the smooth running of Nampala's operations. Regarding Mr. William, he takes over the position of Director of Financial Operations with the firm intention of using his knowledge as a "sell side" analyst. In summary, the reorganization of the team is the first step in engaging in this important phase of operations development. At the head of Robex, we have George Cohen, who has accumulated success for more than 40 years, as well as a team entirely dedicated to the success of the company, in all its forms.
Regarding the conclusion of the acquisition of the Kiniero project, confirmation will be obtained by the filing of the 43-101 technical report; audited financial statements of the Sycamore Company; the withdrawal of the Lomati project and finally, by the approval of the Canadian market authorities. This transaction will be finalized in the coming weeks. To determine the quantity of shares to be issued, a first calculation will be made to consider Sycamore's debt while the second will take into consideration certain payments for which Sycamore is responsible. In the end, I estimate that the maximum amount of shares to be issued will be reduced by ~100,000,000.
Planned for the year 2022, the consolidation of the shares in a proportion of 10 to 1, in addition to the transfer of the trading of the share to the Toronto Stock Exchange. For my part, I believe that the presence of Robex on the Vancouver market is an aberration. It should have been done a long time ago. Fortunately, a process was initiated during the PDAC and will continue until the official announcement. The information obtained to date confirms that Robex already meets the membership criteria. Considering that the market capitalization is ~10 times higher than the average of companies listed on the Vancouver Stock Exchange, this will allow trading in a market place consistent with the value of the company; better comply with the rules of portfolio management companies and finally, gain visibility on both the Canadian and international markets. Therefore, it is to be hoped that these changes will bring the SP back to a compliant level, while allowing the company's growth potential to be better exploited.
For the volatility of the POG, Robex's business model which consists in maximizing the financial return on several axes; through the efficiency of its field operations; its administrative and corporate structure; its low level of indebtedness, provides a considerable advantage over most gold companies. Consequently, POG volatility has much less negative impact on Robex's results than on most other gold companies. For example, a production of 50000 ounces of gold at $1500 profit whose financial results are identical to a production of 100000 ounces of gold at $750 profit, the volatility of the POG has much less effect in the first case than in the second. Knowing this, I consider POG volatility to be a particularly useful tool for seizing opportunities.
More recently, we can also observe that Morgan Stanley has been hammering the SP without any subtlety since the beginning of July. Considering that this brokerage has participated in ~70% of sales and only ~2% of purchases for the past 13 days, there is either consensus (sarcasm) at Morgan Stanley or the appearance of manipulation. I leave it up to you to think about that. One thing is certain, don't let these transactions cloud your judgement, keep the faith and if you wish, profit from it.
With that, my best regards and GLTA.