GREY:RNKLF - Post by User
Post by
Geodan2on Oct 22, 2018 6:39pm
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Post# 28851927
What "Too Much Gold To Count" does for profits?
What "Too Much Gold To Count" does for profits?Today PR with “Mr. Selby continued "Third quarter production results will be released this week, later than originally expected, due to delays in final outturns from the large volumes of coarse gold processed."
That they got too much gold in 3Q to be able to count it yet (ignoring even more gold in last 22 days waiting to be counted) is good news in many ways. Just one profitability. The low grade pays all the bills, they made a profit in 2Q, so if they got say 50,000 oz of bonanza gold at 95% pretax margins instead of 35,000 oz what would that do?
"RNC had net earnings from continuing operations of $5.9 million ($0.02 per share) for the three months ended June 30, 2018, compared to net earnings from continuing operations of $5.9 million ($0.02 per share) for the three months ended June 30, 2017."
So 35,000 oz X $1550 Cad = %54 million x .95 = 51.5 Million x 10% royalties and Aus taxes(royalty) = $46 million pre Cad taxes, which may be near nothing not sure on tax loss carryforwards. If no Cad taxes then 5.9 mill to $52 million profits or $208 million per year.
But at 55,000 oz 57% more pretax profits so then $81 million Cad. + 5.9 existing run rate = $87 Million. Now if Canada takes 20% still $71 million cad profit for 3Q or $284 million profit annual rate about worst case, it will then have reported profits high enough to be a sub 1 P/E right now based on prior Q.
Amazing!