Royal Nickel Corp. RNKLF

Dirrection

[christopher11]

Although I don't think management has done a great job of articulating direction my take is as follows: de emphasise the Dumont dog given large capx of +$1B and needing sustained nickel prices of +$8 which is not going to happen any year soon and not by a junior. Goal accomplished by selling half to Waterton and quietly backing out. Purchased nice copper play which is cash flow positive and should pay out Aurament copper loan in 6 months. As non operators no muss no fuss and should start providing good source of cash flow once debt is done especially if they can prove up more reserves. Focus on new acquisition Beta Hunt the Jewel in the company which could be really really big. Unfortunately a less than perfect start up last year hurt the company and used up significant cash. Technical issues are now in check and personal have been dramatically improved at the site, however still need to do more development to really ramp up that operation quickly to reduce cost/oz and make serious money. There in lies the problem big loan on gold property and need more cash to really get going, can probably finance development internally with gold production now being done but of course the time line is way extended given tight cash restraints which is heavily penalized by the markets and lenders. Still some heavy lifting to be done on this one but a huge amount accomplished over the past year.