Rox Resources (RXL) Q1 2025 TU earnings summary

Executive summary

• Delivered Pre-Feasibility Study (PFS) for the Youanmi Gold Project, confirming a high-grade, high-margin standalone operation with a 7.7-year mine life and low AISC of A$1,676/oz.

• Commenced Definitive Feasibility Study (DFS) with detailed project scheduling, metallurgical, geotechnical, and flotation testwork underway.

• Initiated an 11,000m drilling campaign for resource definition and near-mine exploration, with encouraging high-grade gold assay results at Paddy's Lodes and United North.

• Appointed Phillip Wilding as CEO and Nathan Stoitis as Non-Executive Director; Andrew Shaw-Stuart joined as Exploration Manager.

• Cash balance at 30 September 2024 was $3.4 million.

Financial highlights

• PFS base case assumes a conservative gold price of A$3,100/oz, yielding pre-tax free cash flow of $855m and post-tax $597m.

• NPV8 (pre-tax) of $486m and (post-tax) $322m; IRR (pre-tax) 42%, (post-tax) 33%.

• Payback period of 2.9 years (pre-tax) and 3.3 years (post-tax).

• Cash outflows for the quarter totaled $3.4m, primarily for stamp duty, exploration, and administration.

• Net cash used in operating and investing activities for the quarter was $2.8m and $1.3m, respectively.

Outlook and guidance

• DFS targeted for completion in 2025, with strategies being explored to accelerate the timeline.

• Ongoing drilling and exploration expected to further grow resources and potentially extend mine life.

• Company expects to maintain similar cash outflows in the near term as drilling programs continue.

• Plans to raise additional funds and monetize non-core assets, particularly the Mt Fisher-Mt Eureka Gold Project.