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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

Comment by oxinoson Mar 06, 2020 6:55am
109 Views
Post# 30773975

RE:RE:Cash flow is considered the most important metric...

RE:RE:Cash flow is considered the most important metric...That was the very first that popped in my search for a good Price to cash flow multiple.
I did not suggest that it is comparable to a s/p stock. Why don't you check other gold mining stocks what their price to cash flow multiples are and you'll see that they are a lot higher than 15-20 times I used. Wake up, this is a growth company. It deserves a higher multiple because of the prospect of bringing other deposits into production very soon. They have paid down their debt and have a good cash balance. They are able to fund their development projects from the cash flow. The only negative is that the operations are in Africa. But they certainly don't deserve to be trading at 3 times their cash flow. I would say for now a 6 times their cash flow would be very reasonable, which would mean a $2.00 plus share price.
Semafo which is also in Africa has a 4.3 price to flow multiple and it is considered as very undervalued. In fact many junior gold mining stocks don't even have a positive cash flow. At least Roxgold has positive cash flow that many other juniors would love to replicate.
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