RE:Analysis of RNX with strategic key points (1-7)Pierre,
Very interesting anlysis by Michaud with the aid of Lassonde (another Pierre) curve. RNX is in a unique situation. It's fine to choose the blue arrow as a good starting point for RNX, but it's really does not matter, since the potential for a ballistic take-off would be there for both cases (red or blue). As long as it goes ballistic it would be fine for us.
However, there are several potential scenarios for RNX investors during the next year or so that would affect how high the jump (initial and eventual) would be.
- self-financing with small scale high-grade mining, but this would take more time and there is always the question of dilution if management would like to speed things up;
- JV with a larger company with deeper pocket at the risk of losing 50% of the resource (but the other company would want to have enough incentive to foot the bill for exploration development;
- sell the company lock/stock/barrel.
- got taken over by another company while not watching its back.
I would say a 50-50 JV is probably the best option for us after they have revealed some good drilling results. RNX is being watched closely by majors who can make a pretty good resource estimate by themselves, i.e. without having to wait for a 101 Technical Report from RNX.
Cheers,
GH11
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