Royal Nickel Corp. RNKLF

Credibility established

[geodude13]

Clearly RNX is building credibility for Dumont.  The latest news release isn't adding any value to the RNX balance sheet.  But the royalty re-purchase agreement has credibility.

RNX will need $1B in financing by year end with interest rates increasing they'd be crushed in weeks.  My opinion is that they're building the story to sell the asset to a super major miner and then chase one of the other properties they're developing.  Maybe they retain a minority position in Dumont, and a small royalty in the the purchase and sale agreement.

RNX isn't going to be the mine operator...not with their current balance sheet.  The Austrailian asset isn't making profit or building a warchest of cash but its nearly breaking even at $1300/oz gold and maintaining cashflow.  This is a credibility story for the company; leverage the assets they have and build out opportunities with selling off assets when they can realize a favorable deal or when prices cycle up.

Management has credibility from the perspective of their resumes but they need deeper pockets to grow the company and actually grow a real mine to become bigger junior miner. 

Regards