RE:RE:RE:Why is RBX so low. PE is less than 10. Robex obtains its operating profitability through its ability to process large volumes; by the exploitation of a mineral that requires little processing; and by optimizing all the steps that make up the operational process.
Robex calculated that it was more profitable to orient its business model towards the exploitation of low-grade gold ores that cost less to process. The production cost per ounce of gold produced speaks for itself.
Given its low operating costs, Robex is able to profit from very low gold grade ores, down to 0.25 grams/tonne. The treated gold grade of ~0.80 grams/tonne, presented in the operating statistics, is therefore a grade adjusted during operations, and a consequence of its operational efficiency. In this case, the calculations have shown that it was more profitable to treat the less rich ore than to transport it to the disposal site. By processing more low-grade ores, this results in a very low stripping ratio; slower consumption of mineral resources; and an increase in the life of its operations; without compromising profitability.
Regarding the capacity to grow, it is infinite because the permits that have a large quantity of oxide and lower gold grades are not permits that most operators are looking for. These projects deviate from the classic model, and are more difficult to finance during the exploration phase and even more so for the construction of a plant. Consequently, Robex can obtain these permits at a low acquisition cost, which overall also contributes to achieving the desired economic efficiency.
Given that Robex currently generates ~$50,000,000 in free cash flow; that Kiniero will generate ~3 times more; that its shareholding is 80% made up of strategic investors; and that they have access to conventional financing; the capacity for growth is unlimited.
If the low gold grade still creates a diversion, I can assure you that the combined financial performance of Nampala and Kiniero will astonish. From now on, Nampala must be considered as the pilot project while Kiniero, the flagship project.