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Rox Resources Limited ASX: RXL
Introduction
Rox Resources Limited is a Western Australian gold development company focused on bringing the high-grade Youanmi Gold Project into production. The company’s flagship asset is the 100 percent owned Youanmi Gold Project, located near Mt Magnet in the Murchison region of Western Australia, around 480 kilometres northeast of Perth. Rox describes Youanmi as one of the highest-grade new gold development projects of scale in Western Australia. The project hosts a global Mineral Resource of 12.1Mt at 5.6 g/t gold for 2.17Moz gold.
The key attraction is simple: Rox is not just an early-stage exploration story anymore. It has a high-grade resource, a defined reserve, a completed Definitive Feasibility Study, final investment decision approval, debt funding secured, equity funding completed, and a clear target to pour first gold around mid-2027. The Youanmi DFS outlines a production target of 817koz of gold doré over an initial roughly 7-year processing period, averaging about 117koz per year.
The bull case is that Rox is building a high-grade underground gold mine in a Tier 1 jurisdiction at the right time in the gold cycle. Youanmi has historical production, existing underground access, a meaningful resource base, strong grades, and a DFS showing very attractive margins at current gold prices. The company says the project is fully funded into production after completing A$218M of equity funding and securing a syndicated A$300M facility, plus A$20M cost overrun facility and A$30M bank guarantee facility.
The main risk is execution. Rox now needs to move from study success into construction, commissioning, ramp-up, grade control, debt drawdown, and real underground mine delivery. The asset looks strong on paper, but the market will now judge Rox on whether it can build the mine on time, on budget, and deliver the grades shown in the DFS.
The strongest upside comes from four things: the very high-grade Youanmi underground resource, the low projected AISC, the strong DFS margin at higher gold prices, and the potential to grow the mine life and production rate with further drilling.
Projects / Location / MRE / Grades
Project 1: Youanmi Gold Project, Western Australia (Flagship Development Asset)
Main asset
Youanmi is Rox Resources’ flagship asset. The project is located in the central Youanmi Greenstone Belt within the Southern Cross Province of the Archaean Yilgarn Craton in Western Australia. Rox states that the project is surrounded by million-ounce mines and major gold producers, and that the historic Youanmi mine produced 667koz gold at 5.42 g/t from open-pit and underground mining.
This matters because Youanmi is not a remote greenfield project starting from zero. It has a long mining history, an existing decline extending to around 600m below surface, historical open pits, existing site knowledge, and development momentum already underway.
Rox now owns 100 percent of the Youanmi Gold Project, including 90 percent to 100 percent gold rights in regional tenures. The company’s strategy is to restart Youanmi as a high-grade underground gold mine, then use exploration and resource growth to increase mine life and potentially lift the production rate over time.
Grade feel
Youanmi is high grade. The total Mineral Resource is 12.1Mt at 5.6 g/t gold for 2.17Moz. The underground portion is even more important: 10.9Mt at 6.0 g/t gold for 2.1Moz. This is a strong grade profile for an Australian underground gold development project.
The current Ore Reserve is also strong: 4.4Mt at 4.8 g/t gold for 674koz. Rox’s initial mine plan is 5.7Mt at 4.9 g/t gold for 900koz contained gold, with a production target of 817koz gold doré.
This is one of the main reasons Rox stands out. Many gold developers have resources, but not many have this combination of grade, jurisdiction, DFS, reserve, funding, and near-term production pathway.
Youanmi Mineral Resource Estimate
Rox reports the Youanmi Mineral Resource as:
| Metric | Details |
| Total Mineral Resource | 12.1Mt at 5.6 g/t Au for 2.17Moz gold |
| Open-pit portion | 1.2Mt at 1.7 g/t Au for 0.07Moz gold |
| Underground portion | 10.9Mt at 6.0 g/t Au for 2.1Moz gold |
The underground resource is the heart of the story. Youanmi is not mainly an open-pit bulk-tonnage project. It is a high-grade underground restart story with exploration upside.
Youanmi Ore Reserve
Rox has declared a Probable Underground Ore Reserve of:
| Key Point |
| 4.4Mt at 4.8 g/t Au for 674koz gold |
| Proved Reserve |
| Probable Reserve |
| Total Underground Ore Reserve |
This gives Rox a stronger development foundation than a pure resource-only explorer. It has moved into the mine-development category.
Youanmi Definitive Feasibility Study – Economics
The Youanmi DFS is the main valuation anchor for Rox Resources. At a base-case gold price of A$5,200/oz, the DFS outlines a high-margin underground operation with low AISC and very strong project economics.
Key DFS figures:
| Metric | Details |
| Life of mine | 6.8 years |
| Plant throughput | 900ktpa initial mine plan |
| Plant capacity | 1,000ktpa |
| Material mined | 5.693Mt |
| Mined grade | 4.9 g/t Au |
| Contained gold | 900koz |
| Gold production target | 817koz |
| Plant recovery | 90.8% |
| Pre-production capital | A$383M |
| Sustaining capital | A$172M |
| Total capital | A$554M |
| C1 cash cost | A$1,590/oz |
| AISC | A$1,978/oz |
| Base-case gold price | A$5,200/oz |
| Pre-tax undiscounted FCF | A$2.251B |
| Pre-tax NPV8 | A$1.433B |
| Post-tax leveraged NPV8 | A$965M |
| Pre-tax IRR | 69% |
| Post-tax leveraged IRR | 55% |
| Pre-tax payback period | 1.6 years |
| Post-tax leveraged payback period | 1.9 years |
The most important number is the margin. At A$5,200/oz gold and A$1,978/oz AISC, the project shows a very wide cost margin. That is why Youanmi becomes highly leveraged to gold prices. If gold remains strong, Rox could generate very meaningful cash flow relative to its current market capitalization.
The second most important point is funding. Rox has moved past the “how will they fund it?” question, at least for the initial build. The company says Youanmi is fully funded into production through a mix of equity and debt facilities.
This changes the story. Rox is no longer just waiting for a major funding solution. The next test is execution: construction, underground development, processing plant build, stockpile build, commissioning, and ramp-up.
Project 2: Near-Mine and Regional Exploration (Mine Life Extension Upside)
Youanmi already has enough defined inventory for an initial mine plan, but the bigger opportunity is mine life extension. Rox states that the Mineral Resource remains open down dip and along strike, and that further drilling could increase the production rate and extend mine life.
This is important because the current DFS mine life is only around 6.8 years. That is not bad for a high-grade underground restart, but the market usually gives a better valuation multiple when it can see a longer mine life. If Rox can convert more of the 2.17Moz resource into reserves and add new ounces near existing mine infrastructure, Youanmi could become more than a 7-year restart. It could become a longer-life underground gold platform.
The company’s May 2026 update highlights several near-term development and exploration steps:
| Key Point |
| Continue camp expansion |
| Advance United North decline development |
| Commence stockpile build |
| Continue dewatering of underground workings |
| Continue surface drilling |
| Mobilise underground diamond drilling |
| Advance processing plant and associated infrastructure |
| Remain on track for mid-CY2027 gold pour |
This is a good setup. The project has a base mine plan, but the larger value creation could come if Rox keeps adding high-grade ounces close to existing development.
Project 3: Other Optionality (Regional Tenure)
Rox also has regional exploration optionality around Youanmi. The company highlights near-mine exploration, regional opportunities, Currans Find, and Penny South as part of its broader exploration portfolio.
This optionality is useful but not the main investment thesis today. The main story is Youanmi development. Regional exploration becomes more valuable after the mine is built because any new discovery could potentially feed the central processing infrastructure.
The cleanest way to view Rox is this: Youanmi is the core value driver, near-mine drilling is the mine-life extension lever, and regional exploration is the long-term optionality.
Share Structure / Ownership / Insiders
Capital Structure
As of Rox’s May 2026 corporate update, the company reported:
| Metric | Details |
| Shares on issue | 1,390M |
| Share price | A$0.435 |
| Market capitalization | A$605M |
| Performance rights | 30.4M |
| Cash and cash equivalents | A$200M |
| Cash date | 31 March 2026 |
Using shares on issue plus performance rights, the rough fully diluted share count is:
| Metric | Details |
| Fully diluted shares | 1,420,400,000 |
Using A$0.45 share price from ASX market data and 1.4204B fully diluted shares:
| Metric | Details |
| Fully diluted market cap | about A$639M |
| Fully diluted market cap in USD | about US$460M using Rox’s May 2026 presentation FX assumption of AUD:USD 0.72 |
Share structure feel
The share structure is not tight. Rox has a large share count after raising the equity required to fund development. That is the negative side.
The positive side is that the dilution has funded something real: a high-grade gold mine moving into construction. The company completed A$218M of equity funding, representing around 40 percent of the roughly A$450M funding requirement, and secured debt facilities from four tier-one banks.
So the question is not simply “was there dilution?” Yes, there was. The better question is: did the dilution materially de-risk the path to production? In Rox’s case, the answer is yes.
This makes the share structure acceptable, but not perfect. It is not a super-tight discovery stock anymore. It is now a funded developer moving toward production.
Ownership / Institutions
Rox’s May 2026 corporate update shows a meaningful ownership base, including L1 Capital, institutions, QGold, Hawke’s Point, and other holders. The ownership chart shows L1 Capital at 30.8%, institutions at 24.6%, QGold at 13.2%, Hawke’s Point at 13.4%, and other holders at 18.0%.
This is positive because Rox has serious capital backing. Institutional support matters for a mine developer because the company is now entering the highest-risk execution phase: construction, commissioning, ramp-up, and debt repayment.
Insider ownership does not look like the main strength here. The stronger ownership signal is institutional and strategic capital support.
People / Management
| Person | Role | Relevant Background | Management Feel |
| Phillip Wilding | Managing Director & Chief Executive Officer | Phillip Wilding was appointed Managing Director and CEO in October 2024. He is a mining engineer and corporate executive with around 20 years of experience. Most importantly, he previously served as Chief Operating Officer for Westgold Resources, where he was responsible for three operating mining regions. He has overseen studies, constructed underground and open-pit mines, and helped refurbish and commission Westgold’s Tuckabianna mill and Cue mining operations, including Big Bell and Great Fingall. | This is highly relevant experience. Rox needs an operator, not just a promoter. Wilding’s background fits the company’s current stage. |
| Stephen Dennis | Non-Executive Chairman | Stephen Dennis has been involved in the mining industry for more than 40 years. He has held senior executive roles in Australian resource companies and was previously CEO and Managing Director of CBH Resources, the Australian subsidiary of Toho Zinc. | Dennis brings long-cycle mining and corporate experience. Useful chairman profile for a company moving into development. |
| Nathan Stoitis | Non-Executive Director | Nathan Stoitis is a metallurgist with more than 25 years of experience in plant management, operations, and global sales and marketing. He worked with Bellevue Gold on testwork, design, and commissioning of the Bellevue processing plant, and has been involved in project design and commissioning for gold mines including Ora Banda and Northern Star operations. | Very relevant. Metallurgy, processing, commissioning, and plant performance are critical for Youanmi. |
| David Boyd | Non-Executive Director | David Boyd is a geologist with more than 25 years of mining experience. He worked in senior exploration roles with RGC/Goldfields, Placer Dome Asia Pacific, and Barrick Gold. He was involved in gold discoveries including Raleigh and Homestead underground gold mines in Western Australia. | Strong geological background, useful for high-grade underground gold systems and resource growth. |
| Alan Rule | Non-Executive Director | Alan Rule brings more than 30 years of senior financial and executive experience across ASX-listed mining companies. He has experience in debt and equity financing, risk management, governance, M&A, and major mining projects. He was CFO of Galaxy Resources until its acquisition and previously held CFO roles at Sundance Resources, Paladin Energy, Mount Gibson, and St Barbara Mines. | Very relevant for Rox because Youanmi is now debt-funded and moving into construction. Finance discipline matters. |
| Greg Hoskins | Chief Financial Officer & Company Secretary | Greg Hoskins has 24 years of corporate experience, including more than 12 years in mining. He was previously CFO of OreCorp, which was advancing the Nyanzaga Gold Project before being acquired by Perseus Mining. He was also involved in financing and transaction negotiations, and previously spent more than 10 years with Base Resources. | Strong project finance and transaction background. Useful for a developer moving into construction. |
| Oliver Keene | General Manager – Operations | Oliver Keene is a mining engineer with over 19 years of resources experience. He has managed mine start-ups including Great Fingall and Fender for Westgold, King of the Hills for Red 5, and Andy Well for Doray Minerals. | This is directly relevant. Rox needs mine start-up experience, and Keene has it. |
| Daniel Marchesi | General Manager – Studies | Daniel Marchesi has more than 20 years of mining experience and has worked across underground mining, technical studies, consulting, feasibility work, and project execution. | Useful for converting the DFS into a real operating plan. |
| Andrew Shaw-Stuart | Exploration Manager | Andrew Shaw-Stuart is a geologist with over 20 years of experience across exploration and mining companies, including Western Areas, Millennium Minerals, and Panoramic Resources. | Important for the next value driver: drilling more high-grade ounces and extending mine life. |
Risks / Catalysts / Timeline
Key Risks
| Risk | Why It Matters |
| Construction risk | Rox must build the mine, processing plant, tailings facility, infrastructure, and underground development on time and on budget. |
| Ramp-up risk | Even strong DFS projects can disappoint during commissioning and ramp-up. |
| Underground grade-control risk | Youanmi is high grade, but underground gold systems can be structurally complex. Actual mined grade may differ from the model. |
| Resource conversion risk | The production target includes inferred resources. Rox itself notes that the production target is partly underpinned by inferred resources, and there is no certainty that further work will convert those resources or that the production target will be realised. |
| Debt risk | The project is funded partly by debt facilities. Debt reduces dilution but increases financial pressure if construction or ramp-up is delayed. |
| Cost inflation risk | Labour, energy, consumables, underground mining costs, processing plant costs, and contractor costs can move against the company. |
| Metallurgical risk | The DFS assumes 90.8% plant recovery. Rox must prove this at operating scale. |
| Permitting and approvals risk | Rox has achieved important approvals, but further approvals and compliance steps remain part of the development process. |
| Gold price risk | Youanmi looks highly attractive at strong gold prices, but project value and debt-service comfort would fall if gold prices weaken materially. |
| Share dilution risk | Rox has already raised equity. If costs rise, if timelines slip, or if ramp-up takes longer than expected, additional funding may be required. |
Catalysts
| Catalyst / Timing | Details |
| 2026 | Continue site establishment |
| 2026 | Camp expansion completion |
| 2026 | United North decline development progress |
| 2026 | Stockpile build |
| 2026 | Underground dewatering progress |
| 2026 | Surface and underground drilling results |
| 2026 | Processing plant construction progress |
| 2026 | Further regulatory approvals |
| 2027 | Construction and commissioning progress |
| Mid-CY2027 | Targeted first gold pour |
| 2027 onward | Ramp-up toward commercial production |
| Medium term | Mine-life extension through reserve/resource growth |
| Medium term | Potential re-rating if Rox proves Youanmi can operate as a high-margin gold mine |
Rox stated in its May 2026 update that Interquip was expected to mobilise in May and that the project remained on track for a mid-CY2027 gold pour.
Expected Timeline to Full Production
2026
The key year is construction execution. Rox needs to continue site works, camp expansion, decline development, dewatering, stockpile build, processing plant construction, regulatory approvals, and drilling. This is the transition year from funded developer to active mine builder.
2027
This is the critical year. Rox is targeting first gold around mid-CY2027. If the company hits this timeline, the market may begin valuing Rox less like a developer and more like an emerging producer.
2028 onward
If Youanmi ramps up successfully, the story shifts to cash flow, debt repayment, reserve conversion, resource expansion, production growth, and potential mine-life extension. This is where Youanmi could become much more valuable than the initial DFS mine plan.
Valuation Summary
FCF Multiple Model at US$6,000/oz and US$7,000/oz Gold
This is a simplified free cash flow valuation model. It uses the DFS base-case pre-tax undiscounted free cash flow, then adds additional gold-price upside using the DFS production target. It does not adjust for higher taxes, royalties, cost inflation, debt interest, hedging, future dilution, construction delays, ramp-up issues, financing costs, or changes in mine plans.
Key assumptions:
| Valuation Point |
| DFS base gold price |
| DFS production target |
| DFS pre-tax undiscounted FCF |
| DFS life of mine |
| FX assumption |
| Fully diluted shares used |
| US$6,000/oz gold = approximately A$8,333/oz |
| US$7,000/oz gold = approximately A$9,722/oz |
Youanmi FCF Model
US$6,000/oz Gold Scenario
Step 1 – Convert gold price to AUD
US$6,000 / 0.72 = A$8,333/oz
Step 2 – Gold price uplift
A$8,333 − A$5,200 = A$3,133/oz
Step 3 – Extra revenue
817,000 oz × A$3,133 = A$2.560B
Step 4 – Adjusted LOM FCF
A$2.251B + A$2.560B = A$4.811B
Step 5 – Average annual FCF
A$4.811B ÷ 6.8 years = A$707.5M/year
Youanmi Valuation at US$6,000/oz Gold
| Valuation Point |
| 10× FCF = A$7.075B market value = A$4.98/share |
| 15× FCF = A$10.612B market value = A$7.47/share |
| 20× FCF = A$14.150B market value = A$9.96/share |
US$7,000/oz Gold Scenario
Step 1 – Convert gold price to AUD
US$7,000 / 0.72 = A$9,722/oz
Step 2 – Gold price uplift
A$9,722 − A$5,200 = A$4,522/oz
Step 3 – Extra revenue
817,000 oz × A$4,522 = A$3.695B
Step 4 – Adjusted LOM FCF
A$2.251B + A$3.695B = A$5.946B
Step 5 – Average annual FCF
A$5.946B ÷ 6.8 years = A$874.4M/year
Youanmi Valuation at US$7,000/oz Gold
| Valuation Point |
| 10× FCF = A$8.744B market value = A$6.16/share |
| 15× FCF = A$13.115B market value = A$9.23/share |
| 20× FCF = A$17.487B market value = A$12.31/share |
Updated Valuation Summary Table
| Gold Price | Asset | Avg Annual FCF | 10x FCF/share | 15x FCF/share | 20x FCF/share |
| US$6,000/oz | Youanmi | A$707.5M | A$4.98 | A$7.47 | A$9.96 |
| US$7,000/oz | Youanmi | A$874.4M | A$6.16 | A$9.23 | A$12.31 |
Summary & Quick Scorecard
| Category | Checklist | Overall | Commentary |
| 1. Management | Previous successful project, discovery, mine build, or company sale: Yes Exploration to development: Yes Big mining company experience: Yes Strong capital markets track record: Yes | ✅ Strong | Management looks strong for this stage. Rox has added real mine-building, operations, metallurgy, finance, and underground development experience. The team is built more like a development and operating team than a pure exploration team. |
| 2. Projects | High grades: Yes MRE size: Yes Optionality: Yes | ✅ Strong | Youanmi has a strong combination of grade, scale, reserve, DFS, infrastructure, and exploration upside. The main limitation is the initial mine life, but the broader resource gives Rox a clear opportunity to extend it. |
| 3. Cost Structure | Low AISC: Yes Low Capex / Existing Infrastructure: Yes | ✅ Strong | The DFS AISC of A$1,978/oz is attractive, especially at current gold prices. Pre-production capital of A$383M is not tiny, but it is manageable for a project producing around 117koz/year, especially now that funding is secured. |
| 4. Share Structure Discipline | Fully diluted shares: 1,420,400,000; Fully diluted market cap: approximately A$639M; Fully diluted market cap in USD: approximately US$460M | ✅ Strong | |
| 5. Insider / Ownership | Institutional and strategic ownership: Strong Insider ownership: 25% insider aligned | ✅ Good | Rox has strong institutional and strategic ownership support, including L1 Capital, institutions, QGold, and Hawke’s Point. That is a positive sign for financing and market confidence. The ownership strength is more institutional than insider-led. |
| 6. Location | Tier 1. Western Australia is one of the best mining jurisdictions in the world. | ✅ Strong | Location is a major strength. Western Australia has mining culture, infrastructure, technical labour, capital market understanding, and established regulatory systems. |
⭐ RT Rating, Commentary
Rox Resources is on our watchlist.
We rated this as 5 out of 5 stars.
Rox ticks most of the key boxes: high-grade gold, Tier 1 jurisdiction, completed DFS, declared reserve, strong management, clear timeline to production, and funding secured. The project is no longer just a dream on paper. It is moving into real construction.
The only reason it is not a clean 5-star rating is the large share count, debt execution risk, and the fact that the current DFS mine life is still relatively short at around 7 years. If Rox can extend the reserve, add mine life, and deliver first gold on schedule, this could become one of the stronger Australian gold development stories. The big test now is simple: build the mine, hit the grade, control costs, and prove Youanmi can become a high-margin underground gold producer.
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