Which gold company's shares have hit a record high on new production news?

Mining has started at this company's new gold project in West Africa.

Key points
  • Robex Resources has started mining at its African gold project.
  • The company expects to produce its first gold shortly.
  • Robex is also in merger talks with Predictive Discovery.

Robex Resources Ltd (ASX: RXR) shares have reached a new record high after the company announced that mining has commenced at its Kiniero Project in West Africa, with gold production expected to commence soon.

Robex said mine development at Kiniero, in Guinea, was "tracking according to plan", and mining of ore had started on "day and night shift", with ore being stockpiled while the final elements of the processing plant were finalised.

The company expects to pour its first gold at the project in the fourth quarter of calendar year 2025, and its previous announcements to the ASX have said the company estimates the mine will produce an average of 139,000 ounces per annum over nine years.

Robex also operates the Nampala Gold Mine in Mali, which is forecast to produce 46,000 to 47,000 ounces of gold this calendar year.

Robex is also in the midst of merger talks with fellow West Africa-focused gold producer Predictive Discovery Ltd (ASX: PDI), which would create a company worth more than $2 billion.

Robex Managing Director Matthew Wilcox said on Thursday the company was approaching the "tail end" of construction at Kiniero.

It is pleasing to see the continued efforts and dedication of our teams to complete this project safely while meeting our time and budget considerations. Mining is now underway, with delivery of ore to the run of mine pad and drilling and blasting set to commence shortly. Major components of the process plant have taken shape and are nearing the commissioning phase, which is scheduled to commence next month.

Robex is also continuing to drill at the project for grade control purposes.

The company said concrete works for the processing plant and the power station at Kiniero were complete, and "the process plant will quickly transform as construction is accelerated''.

The next steps for the company included completing the processing mill installation and continuing with earthworks for the tailings storage facility.

View of a mine site.

Image source: Getty Images

Merger in the wings

Robex recently told its shareholders it had agreed to a merger agreement with Predictive Discovery, with further details on that deal to be sent to shareholders soon.

Under the plan, Robex shareholders will receive 8.667 Predictive Discovery shares for each Robex share they own.

Based on the Predictive Discovery share price of 62.5 cents on Thursday, this would value Robex shares at $5.41.

Robex shares hit a new record high of $5.32 in early trade on Thursday before settling back slightly to be changing hands for $5.20, up 4.6%.

Shareholders have made good gains on the stock over the past 12 months, during which it has traded as low as $3.20 per share.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

Stacked gold bricks.
Gold

This ASX gold technology company could rise by more than a third, RBC Capital Markets says

The potential market for this company is large, the broker says.

Read more »

3D render of gold dollar with arrow sign.
Gold

Why are Northern Star shares rocketing 8% on Wednesday?

Northern Star shares surge on takeover speculation.

Read more »

Smiling Indian manager leaning on chair.
Gold

Up 250% in 12 months, Bell Potter says this ASX 200 gold stock can rise another 73%

This gold stock hasn't peaked yet according to the broker.

Read more »

Businessman planning and analysing investment data.
Gold

Is the Northern Star share price a cheap buy?

I take a closer look at whether this gold share still offers value after Yesterday's jump.

Read more »

Judge's gavel and justice scales
Gold

Guess which ASX stock is rocketing 46% today

This gold explorer is making headlines.

Read more »

Gold bullion leaning on a stack of gold ingots.
Gold

Why I'd buy the dip in top ASX 200 gold stocks like Newmont, Northern Star and Evolution Mining shares today

I think the recent pullback in top ASX gold stocks like Evolution Mining presents an opportune buying opportunity.

Read more »

Stacked gold bricks.
Gold

If I'd put $3k in this ASX 200 gold stock 12 months ago, I'd have $12,500 now

The gold shares have slid lower on Thursday, but that doesn't tell the whole story.

Read more »

Two miners examine things they have taken out the ground.
Gold

$10,000 invested in Evolution Mining and Northern Star shares 3 years ago is now worth…

Here’s how the three-year returns from Evolution Mining and Northern Star shares stack up.

Read more »