Royal Nickel Corp. RNKLF

RE:RE:Questions & Answers about RNC Minerals Projection

[Geodan2]

johnny007 wrote: C$ 1.66/sh is far too low a 12 month PT considering:
- Beta Hunt Revenues C$3.40/sh or just 50% for now C$1.70/sh
- Beta Hunt C$1B NPV C$2.08/sh
- DuMont NPV ?? C$1B as well? C$2.08/sh

That's above C$5 per share conservatively speaking:

MIF C$3.40 PT
500,000 tonnes @ 150g/t - 200 tpd ; $1B NPV

500,000 tonnes @ 150g/tonnes = 75,000 kg Gold -> $2625M USD, C$3403M CAD or C$7.09/sh @ 480M OS
 1  tonne =     35,274 oz = $35M USD
 1k tonne = 35,274,000 oz = $35B USD

Just BetaHunt: With 200tpd @CaptainFrostyRocket:
- 500,000 tons of gold laden ore at 200 tons per day, assuming 365 days a year is 2500 days or 6.8 years.
- This is also 30,000 grams per day, or 964 ounces per day which is also ~352,000 ounces for the year.
- Currently $RNX makes $518 USD per ounce and that number will get better as they mine more high margin, easily recoverable gold, but it's conservative for this calculation.
- At $518, they make $182M USD a year, or $.38 USD EPS per fully diluted (477,000,000 total outstanding) shares or .494$ CAD per share
- which makes $RNX worth 4.94$ CAD per share at a 10 P/E."

Both of you have reasonable #s. Suggest a few things though,  first have never seen a 10 PE in a stock that ten bags in 2 weeks to start off, and to get to just $2 that means a 40 bagger, and the company has skyrocketed both sales and profits on top of that at that point.

Never seen that once and have seen a fair number of 20 baggers fortunately.  As crazy as the numbers get suggest a minumum of 20 PE which is what stody old slow growth companies get or they get even better than that.    Just asked myself what is a stody old slow growth company?  Campbell Soup popped into head, checked it https://finance.yahoo.com/quote/CPB/   ITS 46 PE!!

Also Dumont my be worth a billion, but the market is not valuing it there, here is somewhere to be conservative, call it $50 million for now. 

On ounces do think both your amounts are reasonable it could worst case be 100,000 oz a year and best case maybe 2,000,000 oz a year, but 400,000 oz a year is good middling ground.

That is the big unknown and no one knows now what oz will be.  BUT will bet we will not see any stinking 10 PE if its doing 100,000oz a Q and already up 20 bagger by then.