Royal Nickel Corp. RNKLF

lets do a little math on this one

[christopher11]

facts: mgmt. expect to do 40 - 45 kt/m underground @ say 3g/t (per press release) mgmt. expect to do 30 kt/m open pit @ say 2.5g/t (per press release) blended say 2.8g/t x 70ktm = 75,000 oz per annum (very good recoveries) mill purchase: $50M (stock and cash ) Savings per tonne on mill acquisition: 25% on toll milling of A$45/t (per 7/30 press release) say $11.25/t Pay back on mill: $50,000,000/$11.25 = 4,444,444 tonnes throughput 4,444,444/70ktm=63 months or 5.25 years payback which there are no current reserves to cover this time frame so never paid back unless new discoveries (which is highly probable / possible) high cost producer say $1,100/oz (generous based on published numbers to date) so say $400 profit/oz x 6,250 oz/month (July @ 7900 was great but not sustainable given they used up a stock pile) but to be generous lets say 7,000 oz/m X $400 x 6 months = $16.8M profit for Q3 & Q4 but in the hole $19M at June so no profits this year perhaps could start making some cash flow which would start to repay debt and or provide development money. Pretty leaky boat filled to the gunnels lots of bailing to do on this one.