Royal Nickel Corp. RNKLF

RE:Sharing some Napkin Math

[mmsl7751]

johnny007 wrote: Napkin math in CAD Balance sheet I got from a friend:

Warrants 73M in the money -> $23M or C$30M (see https://twitter.com/TSXVPicks/status/1043235808248033282)

C$ 17.7M - 13.6M = 4.1M six month (17.7M was the discontinued mine deduction, no more)
C$8.2M annually
$38M finding = C$49M -> C$57M CAD annually
- C$0.16/sh @ 356M OS
- C$0.1283/sh @ 482M fully diluted
If recurring .. and a real mine w/ much more to dig, you can multiple that by 10.

Cash: C$7M + C$49M (finding) = C$56M
Cash: C$7M + C$49M (finding) + C$30M (Warrants) = C$86M

Current Assets C$38.71M, Total Assets C$92.71M
Current Liabilities C$72.28M (Debt C$22.21M)
Total Liabilities C$82.20M

Current_Assets - Total-Liab C$(43.49M) -> Negative Working Capital

C$38.71M (Current Assest) + C$49M (finding) = C$87.71M
C$38.71M (Current Assest) + C$49M (finding) + C$30M (Warrants) = C$117.71M

Company is already NCAV Positive

+++

OS 482M fully diluted
Total Liabilities C$82.20M
$38M gold finding = C$49M

200dma b4 findings was C$0.18/sh
- Cash_1 was C$7M
- MCAP_1 $86.76M fully diluted
- EV_1 C$161.96M (MCAP_1 + Total_Liabilities - Cash_1)

Now @ C$0.56/sh SP
- Cash_2: C$7M + C$49M (finding) + C$30M (Warrants) = C$86M
- MCAP_2 C$269.92M fully diluted
- EV_2 C$266.12M (MCAP_2 + Total_Liabilities - Cash_2)
- EV rose about C$104.16M
-- 2.12x the C$49M findings
-- 1.31x the C$79M findings + Warrants

MCAP_1b by static EV_1 plus cash value addition, no growth
- MCAP_1b C$165.76M (EV_1 - TL + Cash_2) or C$0.344 fully diluted

Dunno how depressed MCAP was due to debt and all that .. but surely much more
So the SP move up until C$0.344/sh seems to be just a correction on findings and Warrants
A simple balance sheet correction.

Current SP is 0.56 is 1.647 x 0.344, 64.7% growth at least?

Income and growth wise:
- 2Q18: C$ 17.7M - 13.6M = 4.1M six month (17.7M was the discontinued mine deduction, no more)
- Around C$8M annually operational income

-Annsual income: C$49M findings + C$8M previous = C$57M
-- C$0.16/sh @ 356M OS @ P/E 1
-- C$0.1283/sh @ 482M fully diluted @ P/E 1
If recurring .. and a real mine w/ much more to dig, you can multiple that by 10.

nice job!!!