Talked with company, there was reason debt was repaid Talked with Russell Starr. It went well. He is not actually an employee of RNC, is an advisor to the company with a lot of stock market/mining company experience.
The most positive thing that came out of call is why they repaid all the debt when they ended up needing money and selling stock 3 months later. A major factor was that the mine put out, as we remember, bad data in first few weeks. The nuggets were overrated on size and the amount of gold was also overstated for the rich ore. So the company thought they had more money in gold than they did. The initial reports were off by what would translate into dollars by many millions. The King Henry nugget alone was overrated by think it was roughly 1,000 oz. That is $1.3 million in bullion value and maybe over $2 million in specimen value.
They have had many offers on nuggets and should sell them soon.
So indeed based on the info given them by the mine they thought they had a lot more money than they really did. This makes the repay all debt decision much easier to understand now.
On HGO Russell is very positive and thinks it is very accretive. He did not deny it could end up being roughly 2 X cashflow (my guess based on Marc's comments).
They are mining again as Marc has said, but when they were almost purely drilling and not mining for several months that did create quite a cash drain. He could not give specifics but the downward part of FDV should be mined fairly soon in my opinion.
In terms of 2017 drilling width and grade compared to last 2 Qs it's got a lot better but they will get the specifics to me later. I am not aware of any 30+ meter 3+gram in drill holes in past but will find out. In current drill program they have hit an almost 40 meter vein. So our talk reinforced my take that the drilling is going very good.
And he confirmed that Paul Huet is working full time as Executive Chairman and commented some large investors in Klondex made in the $100 million range of profits on Klondex stock which was technically bankrupt when Paul took it over. Thus am guessing those same investors will now look at RNC
It was constructive conversation. Cheers