It's not as bad as it seems Look, I'm not thrilled with the sp, but it's not as bad as it might look. The financing is a little low, but these guys know what they need to get things rolling. I'm not going to knock elgin's efforts getting info out of management, because I've spoken with them too. However, what they've told him, and me for that matter, is not the full truth...its what they haven't told us. There's always information being withheld from retail investors.
Just look at RN.TO's institutional holdings...they are climbing, and quickly. 52 million bought in the past three months since early January, and virtually no short interest. You're paying a little less than book value right now. RN has positive cash flow, but free cash flow is way way way negative. That's only due to development costs, so thats very understandable.
I havent poured any more cash into for a while, but we've hit the floor, so i might start again. One thing management really hit the nail on the head with is paying the creditors via production output. The creditors were also very generous to accept that as well. It's a good all around, because it will keep the creditor engaged. Hey they are even taking on spot gold risk in our favour.
There are many minds around the details of this financing, and they are far more in the know than any retail investor. The lowest upside target for RN is $1.50 and the median target is $2.25. Investing in juniors is a fine art of averaging in, and knowing when. I think we'll be surprised by year's end.
Hang in there RN'ers.
~BT