GREY:RNKLF - Post by User
Comment by
marben100on Sep 26, 2018 11:19am
183 Views
Post# 28693049
RE:RE:RE:Upside is enormous = Biggest gold discovery
RE:RE:RE:Upside is enormous = Biggest gold discoveryFor any inexperienced investors on this board, you can work out the value this way: fully diluted share count is ~477m. Multiply that by the share price to get fully diluted market cap. Subtract net cash from that to get EV (enterprise value). Compare that against your estimate of the NPV of RNC's assets (that's the hard part - and will depend on how much more gold at what grades they find) and you can determine whether the shares are good value or not.
The warrant exercise is no surprise (good to get it out of the way and add to the cash pile). Further option, warrant and convertible exercises will get us to the 477m share count, but also increase the net cash figure.
These instruments were issued when the company was desperate for cash and have allowed it to survive to get to the point we're now at. Given the solid net cash position, and further positive cashflow anticipated from mining, RNC should not have to issue further shares beyond the 477m for the foreseeable.