Rox’s DFS has outlined a long-life, high-margin gold mine targeting more than 800,000 ounces of production over an initial seven-year mine life. The company has also secured $200 million in fresh capital, bringing the project to a development-ready stage and creating a much sharper focus on Venus’ royalty.
Adding further weight to Venus’ valuation case, the company has also run the ruler over its Bellchambers gold project near Sandstone in Western Australia, with a recent independent assessment pegging the asset at about $4.4 million in today’s terms. However, that figure only captures the existing resource base. Beneath that sits a newly defined exploration target that could add meaningful ounces at depth if drilling delivers.
Add in metallurgical work pointing to simple, non-refractory processing and a pathway toward feasibility studies, the project clearly appears to have plenty of legs to grow.
As part of Venus’ defence strategy, the board has also reminded shareholders of what they give up if they accept. Once shares are gone, so is exposure to any future resource growth, project development or corporate interest that might emerge once the dust settles.
With more than $1.3 million in cash, a strong working capital position and a portfolio tied closely to a buoyant gold market, Venus is under no pressure to sell.
QGold may have called its bid final, but Venus’ directors are calling it inadequate. For now, the standoff continues, with shareholders left to weigh a modest premium today against what the board believes could be a much larger prize tomorrow.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
