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Bullboard - Stock Discussion Forum Robex Resources Inc V.RBX

Alternate Symbol(s):  RSRBF | V.RBX.WT

Robex Resources Inc. is a Canada-based gold mining company. The Company owns two assets in the prospective Birimian Greenstone belt: the Nampala producing gold mine in Mali, and the Kiniero Gold Project in Guinea (Conakry). The Kiniero Gold Project is a 470 square kilometers (km2) package of mining licenses in the prolific Siguiri Basin, Guinea, and consists of the adjacent Kiniero (mining) and... see more

TSXV:RBX - Post Discussion

Robex Resources Inc > Evaluate first, choose later.
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Post by ABDPhil on Mar 26, 2024 10:23am

Evaluate first, choose later.

What investors will end up understanding is that the two subjects covered in the latest press release are inseparable.
 
If Robex can afford to talk about closing Nampala in 2026, it is because we have Kiniero which presents unique economic parameters.
 
Gold mining requires a lot of capital to start up, and the same is true to maintain operations. In financial statements, the AISC cost of production represents this information.
 
The economic parameters of Kiniero are so good that Robex can already evaluate different scenarios. That said, it is possible that the capital to be invested to maintain operations in Nampala in perpetuity is less of a good investment than if it were invested in Kiniero. This assessment does not make Nampala an unprofitable project, but Kiniero an even more profitable project, in comparison.
 
To date, a warning has been issued to the tax authorities of Mali, and we are still awaiting agreement on the establishment convention with Guinea. For Mali, a favorable agreement with the tax authorities would allow the long-term value of the project to be fixed in a predictable manner. In this specific case, Robex will either be able to quickly recover part of the capital invested with the depreciation, or benefit from a higher future value.
 
Concerning the signing of the establishment agreement with Guinea, it is a step which will determine the following ones. This agreement will determine the fiscal framework of the Kiniero project, and these parameters will influence what will happen to Nampala. That said, it's as if Mali and Guinea were in competition. In other words, good fiscal conditions in Mali could ensure the future of Nampala while less good ones could favor a project like Kiniero.
 
For my part, I believe that the Nampala asset could be sold, at a price which will be determined based on the conclusions issued by the tax authorities. Consequently, Robex could focus on Kiniero, which presents better economic parameters; infinite potential; and which would be capitalized by the sale of Nampala.
 
In conclusion, I assume that Robex is evaluating all possibilities, and that the agreement with the tax authorities of Mali, and the establishment agreement with Guinea, are information that will guide the choices that will be made. Until the final choices can be made, Robex will continue to collect ~$15,000,000 in EBITDA per quarter, while continuing to develop the Kiniero project, without loss of time.
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