GREY:RNKLF - Post by User
Post by
arh0070on Jul 01, 2019 9:15am
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Post# 29877986
Dilution and news
Dilution and news The issue about share dilution and RNX is very important .There has clearly been enormous dilution over the last 3 years .RNX however has the most impressive use of spin and aggressive p/r campaign with multiple participants that I ever remember on these bbs .That of course does not necessarily translate into profits ,often I have noticed an inverse relationship long term between number of postings and increase in share price .
On another point ,I was reading an article online on ABC news (australia) about the renaissance in the Victoria goldfields where Fosterville is located .The assistant mine manager was talking about fosterville and how high grade it was and the low price of production of gold per ounce .he also said that the average “low grade “underground mine in Australia was 4-5 grams per ton .Right now the beta hunt reserves are significantly below that at 3 grams per ton .I own a tiny company exploring in the Victoria gold fields and they are restricting themselves to looking for 10 grams per ton indicating they dont want to be distracted by the low grade stuff.
In my opinion given the beta hunts severe and unfavorable royalty structure and the enormous number of shares outstanding the only hope for shareholders to make a decent return long term is more Father’s Day finds ,which they apparently havent discovered yet .these type events are very rare .The other hope is in some of thier deeper drilling they found higher grade but still below 10 grams per ton .If they can find higher grade reserves above 10 grams per ton average then even with thier royalty structure they may make a decent profit .Time will tell and as indicated before ,watch for more dilution over the next 6 months ,wouldnt be surprised based on past experience that that will happen .No amount of quoting of rnx personnel or brokerage recommendations will change that.If they need more money as I expect they will ,then there will be further dilution ,rnx may very well spin it as the money is needed for something else .So we will see what happens in the next 6 months .