RE:RE:RE:AGG Investor presentation - January 2021 Hello shorelunch,
Let's start by correcting some information ...
I must tell you that the money used for drilling is not a waste but rather an investment. So regarding this $ 15,000,000 investment that you are referring to, it's more like $ 13,000,000 and I would like to clarify that it is a budget and not what was spent. For the first 9 months of 2020, Robex has invested $ 4,400,000 in drilling and identified 300,000 ounces of gold in additional indicated grade resources. This investment, in addition to the distribution of 6 cents in dividend, was made from realized profits (without dilution).
On the surface, Kobada can indeed demonstrate greater potential than Nampala. I remind you on the other hand that during the time when Kobada diluted the share capital to finance its drilling, Robex put its drilling on standby to finance the establishment of a factory. The result is that today, Kobada continues to seek financing with the objective of increasing the quantity of its mineral resources to $ 25 per ounce of gold while Nampala generates an EBITDA of nearly $ 80,000,000 annually in selling ounces of gold at $ 2,400, distributes dividends and funds the restoration of its mineral reserves from its profits.
I remind you that Kobada does not have a factory, that the strip ratio is an estimate, that the gold grade is an estimate, that the recovery rate is an estimate, that the quantity of mineral resources is an estimate, that the cost of the factory is an estimate and ultimately, the financial package to build this factory is probably what worries you the most. In short, I consider it risky to compare two such different gold companies on the basis of mineral resources alone.
Finally, I find that your assessment of the value of Robex lacks rigor. Considering that Robex generates an EBITDA of $ 78,000,000 annually, or 13 cents return for a 45-cent share, I have many doubts about your qualifications. Of all the companies I monitor, Robex is definitely the best performing and its stock price is vastly undervalued.
That being said, I still believe that Kobada is an interesting property and that I will continue to follow its development.
GLTA and beware of bad comparisons.