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Roxgold Inc. T.ROXG

Roxgold Inc is a Canadian gold mining company. It is engaged in acquiring and exploring mineral properties. The company has two reportable segments; Mining operations and Exploration and evaluation of mineral properties, located in Burkina Faso. Its key asset is the Yaramoko Gold Mine, located in the Hounde greenstone belt of Burkina Faso, West Africa, and Seguela Gold Project located in Cote d'Ivoire, West Africa. The company's primary income is derived from the sale of gold.


TSX:ROXG - Post by User

Bullboard Posts
Comment by sun_shineon Oct 13, 2011 12:34pm
210 Views
Post# 19145920

RE: ...

RE: ...I am not sure predictions of $3 are correct, you still have to look at fundemantals. At current price, the FD market cap is around $135mm. This means that the market is valuing in around 3mm+ oz Au. At $2, ROG would be expected to define over 4mm to 5mm oz Au. I am using a generous $50/oz Au valuation for an African play.

For e.g look at GCU, which is expected to have over 5mm oz Au. after all is said and done. At around $250mm market cap, its trading around $50/Au oz.

This means that they are fully valued right now. Only time will tell how many ounces they can add up and how quickly. Not to discount the fact they will get a premium for the higher grades and being only one of the few exciting plays in this market.

GTLA
Bullboard Posts