Roxgold

Website: www.roxgold.com
Primary ticker: TSX:ROXG
Stage of development: Production, Development
Commodity: Gold
Project to promote: Seguela Gold Project
Project location: Cote d’Ivoire
Company presentation: Click here

Live financials

Cash: USD$50M
Debt: USD$37M

Major shareholders:
Appian Natural Resources – 13.3%
IFC – 6.25%
Ruffer – 6.22%
Van Eck – 5.41%
1832 – 5.02%
Management Ownership – 3.7%

Roxgold is a Canadian-based gold mining company with assets located in West Africa. The Company owns and operates the high-grade Yaramoko Gold Mine located on the Houndé greenstone belt in Burkina Faso and is advancing the development and exploration of the Séguéla Gold Project located in Côte d’Ivoire. Roxgold trades on the TSX under the symbol ROXG and as ROGFF on OTCQX.

Management Profile

John Dorward, CEO & President

Mr. Dorward has over 20 years of experience in the mining and finance industries and most recently served as Vice-President, Business Development at Fronteer Gold Inc. He was an integral part of the team that sold the large Michelin uranium deposit, acquired AuEX Ventures Inc., and successfully advanced Fronteer Gold’s properties prior to the Company’s sale to Newmont Mining Corp. for $2.3 billion in 2011. Prior to his role at Fronteer Gold, Mr. Dorward was the Chief Financial Officer of Mineral Deposits Ltd. from 2006 to 2009, where he was responsible for financing the construction of the Sabodala Gold Project in Senegal, West Africa. He was a non-executive director of Pilot Gold Inc. from 2011 to 2015 and is currently a non-executive director of Navarre Minerals Ltd., an ASX-listed explorer, and Contact Gold.


What is your rationale for attending 121 Mining Investment?

The 121 Mining Investment Conference offers us the opportunity to meet with investors to discuss Roxgold’s past, present, and future. We look forward to discussing our recent PEA results and development plans for the Séguéla Gold Project in Côte d’Ivoire and our operating achievements at our high-grade Yaramoko Mine Complex in Burkina Faso – together which will drive Roxgold towards becoming West Africa’s next multi-asset producer.


What recent news would you like to highlight to investors attending?

14 April – Roxgold delivers robust PEA for the Séguéla Gold Project with after-tax NPV of $268 MILLION and 66% IRR
8 April – Roxgold Reports Strong First Quarter Production Results at Yaramoko
20 Feb – Roxgold Announces Further High Grade Drilling Results at Séguéla and Boussoura


What are your key goals for the next 3, 6 and 12 months?

3 Months:
File permits for the Séguéla Gold Project, continue exploration program at Séguéla to grow project ounces, exploration at Boussoura

6 Months:
Advance Séguéla towards permitting, initiate underground exploration campaign at Yaramoko

12 Months:
Begin construction of Séguéla, issue maiden resource at Boussoura, update resource at Yaramoko


What do you think makes your company such a compelling investment?

Roxgold offers investors exposure to one of the most profitable gold producers in the industry, leveraging the strong cashflows of the high-grade Yaramoko Mine Complex to build the highly value accretive Séguéla Gold Project – enabling the Company to become West Africa’s next multi-asset gold producer.

Analyst Insight – provided by Independent Investment Research

Roxgold is a TSX-listed gold mining company that owns and operates the high-grade Yaramoko Gold Mine located on the Houndé greenstone belt in Burkina Faso, while advancing the Séguéla Gold Project, located in Côte d’Ivoire, towards development.

During 2019, the company recorded production of 142,204 ounces, compared to 132,656 ounces in 2018. It achieved record plant throughput of 466,157 tonnes in 2019, exceeding nameplate capacity by 16%, with cash operating costs of $489 per ounce produced and AISC of $844 per ounce sold.

The Yaramoko gold mine consists of two high-grade underground gold mines: the 55 Zone and Bagassi South. Production at the 55 Zone began in May of 2016 and Bagassi South in September 2019. Bagassi South is located less than 2km from its Yaramoko processing facility.

The Bagassi South Feasibility Study outlined an after-tax IRR of 53.2% with a 1.8 year payback on initial capital, based on a gold price of $1,300 per ounce, with average total cash costs of $426 per ounce (including royalties) and an average all-in sustaining cost (AISC) of $630 per ounce.

Roxgold released a PEA during April 2020 for its Séguéla gold project in Côte d’Ivoire. It outlines Life of Mine gold production of 841,000 ounces, with average annual gold production of 103,000 ounces. Average cash costs are estimated at $605 per ounce over the LOM, including a cash cost of $475 per ounce over the first three years of production. AISC are estimated at $749 per ounce over the LOM, including an AISC of $600 per ounce over the first three years of production.

Estimated pre-production capital is estimated at $142 million (including a $20 million contingency), utilising a conventional processing plant with a processing rate of 1.25 million tonnes per year, with scalability incorporated into plant design for potential expansion. LOM after-tax net cash flow is estimated at $354 million at a gold price of $1,450 per ounce, with project payback of 1.2 years.

For 2020, the company anticipates gold production of between 120,000 and 130,000 ounces, with cash operating costs of between $520 and $580/ounce, and AISC of between $930 and $990/ounce.