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Roscan Gold Corp V.ROS

Alternate Symbol(s):  RCGCF

Roscan Gold Corporation is a Canadian gold exploration company focused on the exploration and acquisition of gold properties in West Africa. The Company has assembled a significant land position of 100%-owned permits in an area of producing gold mines (including B2 Gold’s Fekola Mine which lies in a contiguous property to the west of Kandiole), and major gold deposits, located both north and south of its Kandiole Project in West Mali. The Kandiole Project consists of nine contiguous gold prospective permits, encompassing approximately 402 square kilometers, located within the Kenieba Cercle, an administrative sub-area of the Kayes Region, approximately 400 kilometers (km) west of Bamako, the capital of Mali in West Africa. The prospective gold permits include Dabia South, Kandiole North, Kandiole West, Mankouke West, Moussala North, Niala, Segando South, Bantanko East, and Segondo West.


TSXV:ROS - Post by User

Comment by ABDPhilon Jun 08, 2022 12:40pm
196 Views
Post# 34740712

RE:AGG has 3.1m oz and $20m market cap!

RE:AGG has 3.1m oz and $20m market cap!
For it to be valid, a comparison must not be limited to the quantity of mineral resources.
 
For the next few years, ROS will have to invest a lot of money to turn its indicated resources into reserves. While specified category resources may suffice when the plant is already in operation, this is not the case for all other situations.
 
Whether it is to sell a project, finance a mine, merge with a partner, obtain an exploitation permit, develop a PFS, ... these mineral resources must be transferred to the category of reserves. ROS will have to continue to issue shares to finance this work, for the sole purpose of improving the quality of the estimates, without adding mineral resources. Most gold exploration companies are confronted with this phenomenon and it is the shareholders already in place who pay the big price.
 
ROS is no different from the others and will be confronted with the same problems, namely increasingly expensive financing and for which the positive consequences are less than the negative consequences resulting from the dilution of the shareholders.
 
Without wishing to denigrate this project, only exceptional projects do well and Kandiole is not one of those. For example, Bankan from Predictive Discovery is one of them, as well as Kiniero/Mansounia, whose finalization of the sale to Robex will be concluded in the coming days. These are 2 projects of 3,500,000 ounces of which that of Predictive Discovery is composed of mineral resources in the least reliable category (inferred) while that of Robex contains 2,000,000 ounces of gold in the indicated category and 1,500,000 in the inferred category. The price paid by Robex is similar to the market capitalization of ROS, in addition to including 3 exploitation permits, 2 exploration permits, 1 functional airstrip, a partially built factory, ... and 3 times more mineral resources of similar gold grade.
 
All of these projects are at different stages and the sole purpose of the comparison is to better assess the risks associated with the Kandiole project. The comparison made by zzstocks70 highlights the overly generous evaluation of ROS, in consideration of the problems encountered by AGG during the development of its Kobada project. The approximate valuation of $20,000,000 of African Gold Group is (IMHO) linked to the fact that the quality of the project does not allow financing a factory without a reputable partner, just as it is unable to sell this project at a suitable price, for want of to be the best project. Considering the maximum of parameters, AGG is relatively well valued while the value of ROS is still very exaggerated, considering the number of outstanding shares.
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