GREY:RNKLF - Post by User
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Highwired7on Apr 02, 2019 7:13pm
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Post# 29573085
Talked with Russell Starr @RNC
Talked with Russell Starr @RNCQuoted text from call,
"Just got off the phone with Russell Starr, brand-new guy at RNC, just a few days on the job. (They brought him in at least partly to increase quality of their NRs, a good sign; also to help bring in institutional money.) He defends the previous and current bought deals as opposed to debt, "because debt's what almost killed the company" and that a bought deal "removes market risk." Not sure I'm persuaded, the way this shook out, but what's done is done.
He also insists this latest PP "isn't dilutive"--seemingly meaning that the Higginsville assets are net accretive. Didn't 100% commit to no new stock sales, but anticipates that once that deal closes, they'll likely use debt for further financing. Emphasized the $150 (CAD?) per oz. savings of having the mill.
All in all, I'm at least encouraged by the company taking the time to respond, even if I think some of the responses are a touch flimsy. And I'm definitely encouraged that they seem to have done something tangible to improve quality of future NRs. Bought a little more today."
Posted by Barristerlll@SA