RE:Sour puss arh0070 You wrote: «the price has broken down and apart from very short and minimal up pops it has been relentlessly down. » The day before last bought deal January 15th 2019 share price closed at $0.46 same price as the bought deal. The next day the bought deal closed and then the price went up. January 22nd the stock hit a high of $0.79 and then the market crashed I believe around noon, with DJI ending with -1.22%, SP500 -1.42%, Nasdaq -1.91% and TSX - 0.78%. 2nd set of drill results were combined with Q3 and production let down. So, the stock went down because of the production not the drill results. This time, the purchase agreement option was well received in general, but the bought deal is keeping the stock temporarily at a lower level. If you read between the lines of the news release, RNC Minerals will prioritize accrued development and production with HGO mill and mining below FDV and want to fast track their growth and profitability. Mining under FDV has been long awaited since the specimen’s discovery and 1,406 g/t intersection sitting just 7 metres below the Father's Day Vein area & the mill deal gives access to a USD $100 per ounce saving on AISC.
You wrote: «number of shares» and «endless dilution»
@Huntore March 22nd 2019: «How about facts opposed to thoughts - Researchers at the Stern School of Business at NYU and Emory University looked at more than 40 years of data, from 1962 to 2001, and found that of the 1,600 reverse stock splits, shares underperformed their non-split peers by 15.6% in the first year following the split, 36% in the second year and 54% in the third year. Draw your own conclusions. »
@Huntore April 20th 2019: «I prefer that they forego any reverse-splits or buybacks and grow this company the old fashioned way. Start with getting the mining operation up to full production and putting up profit numbers on a consistent basis. Let the company grow into the share float. Relying on profits rather than increasing debt levels or further dilution is the best option presently in my opinion. What will I be watching for? RNXs’ most-important fundamental data for us as investors, the all-in sustaining costs per ounce mined. AISCs include all direct cash costs, but then add on everything else that is necessary to maintain and replenish operations at current gold-production levels. These additional expenses include exploration for new gold to mine to replace depleting deposits, mine-development and construction expenses. They also include the corporate-level administration expenses necessary to oversee the mines. All-in sustaining costs are the most-important gold-mining cost metric by far for investors, revealing gold miners’ true operating profitability; which will directly drive profitability which ultimately determines stock prices. I believe that investors look for production growth above everything else, as it is linked to company growth. I am assuming that the mine manager will want to sequence processing to ensure that higher-grade ores are fed into the mill in Q3, yielding more ounces produced despite fixed mill throughputs. Why? They seem to like to process their higher-grade ores in Q3s when bonus calculations are on the horizon, and their lower-grade ores in Q1s when year-ends are far away. Will RNXs’ up-coming ore production report in Mid-May reflect the true production possibilities for the entire year of 2019? This will be answered in the spring of 2020. I realize that there is a developing consensus on this board to do something about the size of the float and that my stance seems to be out of sync. I believe at this early stage of direction change and development the company needs to prove the resource and that it can be mined at a consistent profit. »
Also, stage of development is key in determining a reverse split or buy back in the future if deemed strategic.
You wrote: «constant need for financing» this is a mining company and a producer and the first bought deal was to initiate a 40,000 metre drilling program in order to increase 43-101 and develop a mine plan to ramp up the production. The second bought deal was to give RNC the purchase option of HGO which includes a mill that gives access to a USD $100 per ounce saving on AISC. Also, as per AAricia on CEO.ca March 29th 2019: «One thing to remember is the company that sold the mill, believes in RNX enough to take payment in shares!!!!!. So both management teams think there is sufficient gold there to make big money....... »
You wrote: «the highest royalty on a ny gold stock that I have ever seen» RNC Minerals isn’t even trading on the NYSE nor the Nasdaq but on the OTC. Royalty is included in AISC as per
https://www.denvergold.org/wp-content/uploads/DGG-Presentation_GrantMalensek.pdf:
«AISC Adjusted Operating Costs; plus
-Corporate General and Administrative expense -Exploration and study costs (sustaining)
-Capital exploration (sustaining) -Capitalized op stripping and UG development (sustaining)
-Capital expenditures (sustaining) = All-In Sustaining Costs
Adjusted Operating Costs:
-On-site mining costs
-On-site G&A costs -Royalties/Production taxes
-Hedging impacts on operating costs
-Community relations costs
-Permitting costs -3rd party smelting, refining and transport costs
-Non-cash remuneration (site based)
-Stockpiles/product inventory write-downs
-Operational stripping costs
-By-Product credits. »
April 5th 2019
https://ceo.ca/rnx?b653b20e4f45 : RNX gold production costs reduced to USD $698 in 2018 from $1579 USD in 2017.
Mark Selby: «The cash costs going forward is really going to depend on the mix of high grade coarse gold and sort of the bulk production that we have going forward. Again, once we get the resource update and an updated mine plan out subsequent to that, we’ll be able to comment in terms of what that AISC looks like going forward and obviously again, where we end up with on a given transaction will have a big impact on that as well. »
From @Lexcon May 2nd 2019 as per
https://ceo.ca/rnx?99180497dc01 : «200k annual with $950 AISC and 1300/oz POG works out to close to 0.12 to 0.14 per share annual ebita. »
From @Geodan April 18th 2019 as per
https://ceo.ca/@geodan?83985740e4a1: «Did get some info on questions from company. About what guessed. They think 3 grams or more a ton at widths they are seeing would be quite positive cash flowing to bulk mine, especially with mill if they get it. That matches what see in past. And the drilling they have released is better than what they got in 2017 width and grade wise. What they have been seeing width and grade wise is better than what they expected at both shear zones they have have been drilling. They have not explored much below the sediment layer. I am encouraging them to drill downward in the shears, not from the side, just to gauge how shears grade with depth below sediment layer and maybe hit another sediment layer. The next drill report will give us more data below, but really want to know what is 200, 300 meters down in the shears. Could be a big deal. Now 8% up on RNKLF Some more clarification on that, asked at 8 meters width, so at 8 meters they think 3 grams will cashflow well with the mill. That is more like old widths. They have some 20 to 40 meters widths in new drilling at over 3 grams. That should then be very very profitable IMHO. »
You wrote: «Its hard to imagine anyone lending RNX money to buy the plant, if someone did it would be on extremely unfavorable terms (ie high interest rate, the plant and mine as collateral ». Is RNX in poor financial state? Q4 profit was $12,794,000 USD and for 2018 the company lowered net loss by 90,78% from $91,061,000 to $ 8,396,000, quite the turnaround. Also, a 5 km ramp system today which would cost you nearly 400 million $ to put in place just sitting directly above the gold deposits as per
https://ceo.ca/rnx?f974d49981e5 . The latest bought deal would not have come about if RNX could only
finance with junks bonds. Cash portion alternative sources of financing perhaps? Debt, gold specimens (if sold) and mix of high-grade coarse gold with bulk production and cash from bought deal?
You wrote: «Pierre, he suddenly appeared in march» When did I start posting more actively? CEO.ca December 21st 2018, Twitter & Stocktwits & Stockhouse January 30th 2019 and Yahoo February 20th 2019.
You wrote about me: «countless hours attempting to boost the RNX share price prior to the next share offering. » Dissemination of coherent and reliable due diligence content is useless for bashers and those that short the stock? I agree. You spew disinformation.
You wrote: «the only entity to make a profit out of this is the royalty holder Maverix» This is untrue as 2018 annual revenue was $128,770,000 (+76%). They lowered net loss by 90,78% from $91,061,000 to $ 8,396,000, simply excellent. Also, All-in sustaining costs (AISC) were US$698 per ounce sold for the fourth quarter of 2018, a 56% improvement on the US$1,579 per ounce sold in the prior year comparative period.