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Royal Nickel Corp. RNKLF



GREY:RNKLF - Post by User

Comment by goldhunter11on Mar 28, 2019 11:34am
236 Views
Post# 29548406

RE:$RNX: Big EBITDA improvement

RE:$RNX: Big EBITDA improvementPierre,
Apart from the significant improvement in RNX financial situation, especialyl in Q4 of 2018, here are a few observations:
- Coarse gold discovery reduce the AISC to below US$700/oz, which is quite low/impressive. If PoG stays at $1300/oz level. The profit would be 500/oz or 500 x 1.25 = C$750/oz, @100,000 oz/yr = C$75M/yr (not shabby). I would bring it down to C$50M/yr to be conservative. As MS indicated, the game plan is to concentrate on the exploration at BH and to use as much as possible the higher-grade ore from BH. If they could increase the production at BH and take up the entire capacity of the HGO mill then the revenue/profit would increase significantly.
The math:
1.3M tonnes x 7.28gpt (Q4 2018) /31 = 315,000 oz/yr, round off to 300,000oz/yr x $500 profit = C$150M. If the grade is improved further (like Swan at Fosterville) then RNX could easily double the profit.

-  Noticed from Table 2  of the NR that 73,801 oz Au were produced, but only 62,806 oz were sold.The balance of ~11,000oz Au is sitting somewhere (to be applied to 2019)? Not sure if this includes the specimens.

- Page 5 of NR, last para for BH: MS mentioned the nice long intercepts (WF) outside the JORC resource boundaries and open to the north, which would add to the current RE. My first guess for the updated RE (lower bound) would be doubling the current RE (of 0.450M ozAu) to about 1Moz from this round (40,000m) of drilling. See 25 Feb 2019 NR, Figure 2 for WF, and Fig 3 for A-zone.

- Dumont: Sounds like MS would want to wait for the udated Feasibility Study to be completed before making any decision about spin-off, or double-down on Dumont.
GH11
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pierreg wrote: For the full year RNX Adjusted EBITDA improved to $27.3 million or $0.07 per share compared to a loss of $12.2 million or $0.04 per share in 2017. Big improvement.
EBITDA: Earnings before interest, taxes, depreciation, and amortization.



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