Royal Nickel Corp. RNKLF

RE:Cantor Fitzgerald Canada comments on RNC Minerals Corp.

[Jimpro63]

"arh0070" , "BillionaireBoy?' , "verypoor" , I don't believe (majority ) any negative ( misleading ) posts here are going to get you a position any cheaper now.  Royal Nickel is priced at it's new ,low value as of today. Every Ounce of News that will now start being released on an expected, frequent basis will be a Catalyst and the Stock price will continue to appreciate from here on in .  Could set a new High ( versus 2018 ) before the year is over .

stockmaster989 wrote: According to Cantor Fitzgerald Canada:

https://docdro.id/9XSDQ2s

RNC MINERALS CORP.
 
Recommendation: BUY
 
One-year target: $1.10
 
Target return: 120%

Higginsville Acquisition Closed and Financed - Bring on the Gold

EVENT
 
RNC announced that it has closed the previously announced acquisition of the Higginsville Gold Operation from Westgold Resources (WGX-ASX, not covered).  RNC paid Westgold AUD$25 M in cash and issued a total of 56.9M shares in satisfaction of the HGO purchase price. The cash portion was funded by a new senior secured $35M debt facility entered into by RNC. 
 
BOTTOM LINE
 
Positive:   The closing of the Higginsville option will make RNC a lower cost and diversified gold producer.  The transaction brings a much-needed in-house milling solution that will allow RNC to lower operating costs at its core operation, the high-grade Beta Hunt Mine, by ~$15/tonne (~$100/oz).  Higginsville also brings an existing toll milling business and 1.9 Moz of additional gold resource that can provide supplemental feed to the mill.  The new credit line should be adequate to cover working capital as the new Beta Hunt ramps up over the balance of the year. Our Buy rating and $1.10/shr target price remains unchanged.
 
HIGHLIGHTS
 
• Higginsville Acquisition: With the Higginsville acquisition, RNC has secured a lower cost milling solution for its Beta Hunt mine as well as a diversified production and revenue stream.

• Growing Gold Producer:  The Beta Hunt Mine produced 74koz of gold in 2018 and is gearing up for over 100koz annually from 2020 with upside from specimen gold discoveries. 
 
• High Grade Gold Upside: The 2018 discovery of high-grade specimen gold at Beta Hunt delivered ~25koz of gold from just 130t of material.  This is driving a new exploration model and we expect more discoveries across the property.
 
• Near-Term Catalysts Include:  i) drill results from Beta Hunt (ongoing), ii) new resource for Beta Hunt (Q2/19) and iii) reserve update and new mine plan (Q3/19).