West African political risks shadow Robex’s ambitious Kiniero development IPO

Robex Resources' ASX IPO – A Strategic Move

Robex Resources Inc., a Canadian-based gold exploration, development, and production company, has announced its initial public offering (IPO) on the Australian Securities Exchange (ASX). The company aims to raise A$120 million through the issue of 38,585,209 CHESS Depositary Interests (CDIs) priced at A$3.11 each. This move marks a significant step in Robex’s strategy to access Australian capital markets and accelerate the development of its flagship Kiniero Gold Project in Guinea.

Each CDI represents one underlying share in Robex, enabling investors to trade the company’s shares on the ASX despite its Canadian incorporation. The IPO is fully underwritten by leading financial institutions, ensuring the capital raise’s success and providing confidence to prospective investors.

Kiniero Gold Project – An Advanced West African Asset

The Kiniero Gold Project is an advanced mineral development located in the Kankan region of Guinea. It encompasses two permit areas; the Kiniero Permit Area and the Mansounia Permit Area; with a combined JORC-compliant indicated mineral resource of 71.23 million tonnes at 0.96 grams per tonne (g/t) for approximately 2.2 million ounces of gold. The project also holds a probable ore reserve of 45.5 million tonnes at 0.97 g/t, containing about 1.41 million ounces of gold.

Following a comprehensive feasibility study update in early 2025, the project is positioned for a targeted first gold pour by the fourth quarter of 2025. The study highlights a post-tax net present value (NPV) of US$647 million at a long-term gold price consensus of US$2,320 per ounce, with an expected mine life of around nine years and all-in sustaining costs (AISC) of US$1,066 per ounce.

Nampala Mine – A Mature Gold Producer in Mali

Complementing the Kiniero Project, Robex operates the Nampala Mine in southern Mali, which has been in continuous production since 2017. The mine holds an indicated mineral resource of 8.6 million tonnes at 0.94 g/t for approximately 261,000 ounces of gold and a probable ore reserve of 4.04 million tonnes at 0.93 g/t for about 121,000 ounces.

The Nampala Mine benefits from established infrastructure, including a hybrid solar-diesel power system and reliable water sources, supporting its operational continuity. The mine’s life-of-mine plan extends to late 2026, with ongoing exploration targeting extensions and regional prospects.

Use of Proceeds and Financial Position

Proceeds from the IPO, alongside existing cash reserves and drawdowns from a US$130 million Sprott Facility Agreement, will primarily fund the development and construction of the Kiniero Project, including engineering, earthworks, equipment procurement, and pre-production costs. Additional funds will support corporate expenses, financing costs, and working capital requirements.

Robex’s financial statements, prepared under IFRS and audited by PricewaterhouseCoopers LLP, reflect a company transitioning from exploration to production, with a focus on sustainable growth. The company’s management team, led by CEO Matthew Wilcox, brings extensive experience in West African mining projects.

Risks and Governance

Investors should be aware of the inherent risks associated with Robex’s operations, including political instability and regulatory uncertainties in Mali and Guinea, permit renewal challenges, and operational risks related to mine construction and production ramp-up. The company has addressed these in its detailed risk disclosures and maintains robust corporate governance structures, including an experienced board and management team with African mining expertise.

Robex has also implemented comprehensive environmental, social, and governance (ESG) strategies to manage its impact and maintain strong community relations in its operating regions.

Outlook

Robex’s IPO on the ASX represents a pivotal moment, providing the capital and market presence to advance its Kiniero Gold Project towards production while sustaining operations at Nampala. The company’s strategic focus on mid-sized, high-quality gold assets in West Africa positions it well to capitalize on favorable gold market conditions, despite the geopolitical and operational challenges inherent in the region.

Investors and analysts will be closely watching the progress of permit approvals, project development milestones, and the company’s ability to execute its growth strategy in the coming months.