Out todayI'm sure this will be a very unpopular post, but I'm out today @ C$0.74 and want to state my reasons. Happy to take profits having bought in @ C$0.28.
Two reasons why I decided to exit: first this sentence:
"RNC now expects 27-30,000 ounces of gold from the immediate Father's Day Vein area and substantially more than 35,000 ounces from the 540 metres of A Zone sediment structures identified to date."
That can be read in two ways: the company expects to recover 27-30k oz from the FDV area AND a further amount "substantially more than 35koz" from the rest of the strike OR that the > 35koz includes the 27-30koz. So I rang the company to check which was the meaning they intended. Rob confirmed my susupicions that the > 35koz INCLUDED the 27-30koz from the immediate FDV area - so they're clearly not expecting recoveries anywhere near what has been found so far from the rest of the 540m of strike. Worth noting though that this is still guesswork at this stage, as drilling has only just started and, if shareholders are lucky, there could be much more in the rest of the strike.
The second concern is contained in the reporting of gold content in the large specimens. This NR gives estimates of 1,402oz for "King Henry" and 893oz for "Warren". However the initial NR of 9th September (
https://www.rncminerals.com/2018-09-09-New-Discovery-Yields-9-000-ounces-of-High-Grade-Coarse-Gold-from-Single-Cut-at-Beta-Hunt-Mine) gave estimates of 2,440oz and 1,620oz respectively. I asked why the big discrepancy. Rob admitted that the original estimates were inaccurate and based on assuming that the % gold content in the large specimens was the same as in smaller specimens which had been assayed at 70% gold. This strikes me as incompetent/negligent. As I've mentioned previously on this board, a simple measurement of the density of the specimens would have shown a dramatically different gold content to that reported. Now the big specimens are still phenomenal, but such a basic error, in combination with the confusing report on expected recoveries gives me no confidence that current management will be able to explore and mine Beta Hunt effectively - and report results to shareholders accurately.
I will continue to watch from the sidelines, and might re-enter if results look like being better than current expectations. Most notable is that the report on the expected recovery from the 540m of strike implies that Q4 will be nowhere near as good as Q3 and all those assumptions that production will continue as it did in Q3 (or even improve) seem overoptimistic. Looks to me like this company has had a phenomenal quarter, but there are severe doubts about whether it can repeat it.
Good luck to remaining holders.
Mark