GREY:RNKLF - Post by User
Post by
arh0070on Apr 20, 2019 11:09am
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Post# 29650826
Share buy back
Share buy back Who can disagree with motherhood.The problem is that RNX has a relentless need for money to develope the mine ,find the reserves ,access it and mine it,buy the plant to process the ore and get it all running smoothly .This will all take several years .During that time there will be at least 100-200 million more shares issued depending upon the share price .They dont have any other obvious sources of revenues since RNX is basically a one pony show which is dragging a huge wagon which is very heavy and contains the 7.5% royalties .In reality. There are very few junior miners that ever buy back shares .Yamana is buying back some but that has multiple projects(it has just sold one)and a small royalty company called abitibi which has free cash flow and about 10 million shares out .
The only hope for Rnx to get cash flow positive is to find about 3-5 more Father’s Day veins in the next year .This is a low probability .If they becoome just a medium grade gold miner with all their financial responsibilites there is no chance .