Roxgold Inc. T.ROXG

TempleTooth2 Yes. Roxgold is

[cigarbutts]

Undervalued.    I like boring simple companies.   Easy to understand and get my head around it. 

I see about 5-6 years mine life.   I see about $40M US Net Working Capital,  net of all debts.

Lots of CASHon the Books.

I see about $200M  US Market Cap after deducting $40M  US  Net working Capital.

I see about $80M (or so)  EBITDA or OPerating Profit before items.

So  we are about 2X  EBITDA on  5X Mine Life...............

I like this math.

I agree with you we should not be wasting money on promote trips to SA to look for investors.   On the margin,   the cash should be used to BUYBACK sharesin the open market.    We do NOT need a divie.     BUYBACK is the answer.   Every year,  at these levels,  buyback 10% of the float,  or 5%, whatever the TSX allows. 

The problemis that management  does not really have enough skin inthe game.   They do NOT think like owners.  They want to preserve their salaries and bennies,  so they waste it going to   SA.   They hold $70M US today for really very little benefit to anyone.

I do not understand how their is NO private equity in Canada or US that would not be willing to take this company out at 30% premium to today's price.    I would invest in it.
Spend a little on drills and hope these zones continue at depth.    

Even paying 3 times Cash Flow for a 5-6X  mine life return is a great deal today,  at these low interest rates.    Every year I extend the mine life is just gravy.

[flashcash]

It will go no where until the management are sorted ! It’s a management problem.