Roxgold: Undervalued Producer And Potential M&A Target (OTCMKTS:ROGFF

published 28.07.2020 01:21

Image of article 'Roxgold: Undervalued Producer And Potential M&A Target (OTCMKTS:ROGFF'

Although no deal has appeared in the last few years since bringing Yaramoko into production, gold is now sitting near all-time highs, and with the upside of Seguela it will be a much more attractive target.

After being a rumoured M&A target for years, but without any deals materializing while gold was languishing around $1,200/oz, management decided to go on the offensive and become a buyer themselves with the Seguela acquisition.

When they acquired the project just last year, when gold was still below $1,300/oz, the asset had an inferred resource of 430,000 ounces gold at 2.3 g/t gold.

To solve their resource and jurisdiction problems, management were proactive and found a growth asset in the region that has turned into a potential cornerstone asset for the company, buying the Seguela gold project in Cote d’Ivoire from Newcrest for $20 million in cash in April 2019.

As investors and would-be acquirers were turned off by Yaramoko’s relatively short mine life, management found a new growth asset in their backyard with the Seguela acquisition, picking it up from Newcrest for $20 million last year.

by Galt Research from seekingalpha.com

Free awesomeness straight to your inbox!

Sign up now for this free newsletter to receive hand picked content, covering topics like Lifestyle, Business & Technology.

Free Newsletter Sign up now!

..or jump directly to the latest posts!