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Rox Resources: Stock Price Estimate at $4,000/oz Gold
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Project Details and Financials
1. Youanmi Project:
Total Resource: 2.3M oz gold.
Annual Production: 100,000 oz.
AISC: $1,100/oz.
Capex: $161M.
NPV: $211M (at $1,800 gold).
IRR: 33% (after-tax).
2. Current Market Cap: $67M.
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Free Cash Flow Calculation
At a gold price of $4,000/oz:
1. Revenue:
Revenue = 100,000 × 4,000 = $400M USD.
2. Operating Costs:
Operating Costs = 100,000 × 1,100 = $110M USD.
3. Free Cash Flow (FCF):
FCF = Revenue - Operating Costs.
FCF = 400M - 110M = $290M USD.
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Valuation Calculation
1. Market Cap (using a 10x FCF multiple):
Market Cap = 290M × 10 = $2.9B USD.
2. Stock Price Calculation (assuming 100M shares):
Stock Price = Market Cap ÷ Shares Outstanding.
Stock Price = 2,900,000,000 ÷ 100,000,000 = $29 USD/share.
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Conclusion
If gold hits $4,000/oz and Rox Resources achieves 100,000 oz annual production, the estimated stock price could be $29/share, showcasing immense upside potential compared to their current market cap of $67M.
This highlights Rox Resources’ strong leverage to rising gold prices.
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