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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
Post by challenger426on Jun 07, 2017 1:11am
285 Views
Post# 26333543

Value of ROXG

Value of ROXG
I just worked with some numbers and it appears we are at the low end of the value range for ROXG.

At $1.18/share would imply that we produce at the low range of production guidance and at the high range of AISC.  This number is based on the avg gold price so far this year which is $1234 and rising.  If the avg gold price goes higher, then this is a bonus for ROXG and other gold producers.

Now at the high range of production guidance and at the low range of AISC, I came up with a value of $1.46/share.

It is quite simple to come up with these numbers.  I used the AISC range of $740 - $790 and used the production range of 105,000 - 115,000 oz of gold.  Then take the avg gold price of $1234 (which is rising), subtract the AISC x Production, divide it by the number of shares outstanding (371M).  Finally, from this number, multiply by the reasonable multiple of 10  subtract the non-sustaining cap ex ($28M) divided by the number of shares outstanding (371M).

So ROXG is at the bottom of my $1.18 - $1.46 range and could easily jump back to the $1.40's or higher if the price of gold holds or goes higher.

Keep in mind that debt also plays a factor in the share value.  Hope this info helps you.  ROXG is definitely one that should go higher. 

By the way,  in my opinion, PRU (Perseus Mining) seems way undervalued using their numbers and the formula I provided....should eventually double or triple from 30 cents as they ramp up production soon.
"Edikan's Life of Mine Plan ("LOMP") was updated based on the re-estimated Ore Reserves. This updated plan forecasts average annual gold production of 240,000 ounces at an AISC of US$875 per ounce for the next five years;


Cheers.
Bullboard Posts