Royal Nickel Corp. RNKLF

RE:RE:RE:RE:RE:MMX owns a full 7,5% Royalty on all Gold at Beta Hunt

[MrBogBrush]

Mark.. love your outrageous possible 200 mil oz of gold!! yes of course it is in the realms of possibility but woah that is touching on fantasy at this stage imo.. 

Just for fun though here's a rough estimate of what 200 mil oz would do for RNX:

Note: Because some people get very upset about being compared to Bre-X which we all know was a scam, so the only comparison I am making here is how the market would likely price 200 million oz AU. 

The estimates of gold ounces for Bre-X peaked at 200 million ounces and based on that the m/c went to 6 Billion so that would give RNX a stock price of $15 per share!

Personally I would be over the moon with anything above 10 mil oz.. which incidentally is around the number that will get majors sniffing around. 

marben100 wrote: Thanks for the info, teatime, which is correct. RNC's annual report says:
 

Existing royalty obligations at Beta Hunt are (i) Consolidated Minerals, 3% of payable nickel (at a nickel price under A$17,500/t) or 5% (at a nickel price of A$17,500 or greater) until total royalty payments reach A$16 million; (ii) Western Australian state government, 2.5% of recovered gold and nickel; (iii) Maverix Metals Inc., 1.5% of payable nickel less allowable deductions, 6% of recovered gold and 1.5% of recovered gold less allowable deductions; and (iv) Pala, 2.25% royalty on future Beta Hunt nickel production commencing April 1, 2019.

Now let's think about this... suppose RNC produces $200m of gold p.a. - a big uplift on current production, so that's $15m p.a. to MMX's bottom line - nice but not massive relative to MMX's market cap. of C$442m. Think I'll stick with RNC with a market cap. of still only C$158m and which would benefit from the lion's share of the profits from such a production increase.

Mark