Royal Nickel Corp. RNKLF

Rnx

[arh0070]

There has been relentless dilution over the last few years and a further 70 million shares created when you add in the options ,so as predicted some months ago (an idea poo-pooed by the booster club at the time)RNX will have way north of 600 fully diluted shares outstanding .
It was quite obvious that getting higginsville fully operational and integrated with the beta hunt was going to cost money ,hence the further dilution in view of the fact that they probably couldnt borrow anymore (already 35 million in debt ).
It seems likely that this quarter will be marginally cash flow positive at best ,if they were generating large amounts of cash they wouldnt need to be doing further major dilution .So it seems likely that shareholders will have to wait until the next quarter to see if this mine can throw off significant cash flow given the low grade nature of the product ,the 35 million debt and the royalty regime which is a killer .
The booster club ,thier job done has pretty well disappeared apart from Pierre who is trying to sell this new offering .He has spent a great deal of time and effort on this ,one wonders if he works for a brokerage house .Cant say the brokerage recommendation to buy RNX has turned out too well..The replacement value of the beta hunt infrastructure is meaningless ,what matters is whether it can produce a profit for its owners .the price performance of RNX is particularly bad in the context of an increasing gold price .Sure hope some people out there listened to what I had to say which was sell RNX and Buy MAV ,that has been a profitable trade whilst still retaining an interest in the beta hunt mine itself .