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Royal Nickel Corp. RNKLF



GREY:RNKLF - Post by User

Comment by goldhunter11on Sep 09, 2019 5:30pm
230 Views
Post# 30110427

RE:Did talk with Paul Huet

RE:Did talk with Paul HuetGeodan,
Excellent  reporting!
One take-away is the grade at Baloo: "We both talked about how the grade at Baloo is spectacular for a shallow open pit, way beyond what is normally mined in Nevada (some profitable mines are under 0.5 grams in Nevada)."

In some NRs they were talking about grades from 1.8-2.8 gpt from bulk operation.  Much higher grades were reported, 44gpt for Baloo and 50.7 gpt for Nanook.

See link below (starting at page 10 for Polar Bear Project)
https://www.s2resources.com.au/documents/ASXann170920AnnualReport.pdf
GH11
--------------------------
Geodan2 wrote:
I did have a conversation with Paul Huet over the weekend. He also gave an video interview with Mike Coyle which I guess will be up this week on InsideExploration.com.
 
We went over a lot and I tended away from technical details at the mine as guess Mike covered that. Some key takeaways is that Paul is taking 77% of his compensation in stock not cash. On the last money raise RNC finally does have normal institutional investors. Outside of Sprott, who is not a normal institution, RNC had no institutional investors (rare). About 90% of the stock was taken by multiple institutions that have never been invested in RNC before. That is a positive on something that overall has been taken as a negative by investors (the dilution).
 
The motivation was not capital ex needs, it was the negative working capital that the company reported on the 2Q and I know also that it is common for a company to have negative cashflow depending on when AR and AP things fall even when they are profitable. He would not go into AISC after the 2Q but that may be coming out I guess when they have more info. Being they sold 35% less gold than they mined in 2Q as they fired up Beta Hunt to full production there is a lag before it gets thru the mill and is sold. So based on 2Q #s at much lower production #s than current the AISC was under $1,000 (my calcs) if they sold as much as they mined. So again my calcs from what saw in 2Q #s RNC does have a sub $1,000 AISC now and that puts it at about a 4-5 P/E which is very cheap in this in favor gold miner stock sector.
 
I mentioned putting out info on how the Australian record high gold prices help RNC more than if the mine was in USA. He liked that idea and I will not be surprised if they put out something out on that.
 
Very importantly when I mentioned the lack of a drill report with hole details after May he was not aware of the prior commitment to do monthly reports nor that the detail on they last holes never was put out . He said Mike Coyle said same thing, so I am expecting that hole by hole detail will come out. What he did say is that the drilling came out so good in terms on ozs found per $, ($7 per oz) he had them internally audit it to make sure it was that #s were good, and audit came back that the #s were right. In an interview Graham Sloan said it was one of the best costs for gold resources he had ever seen and Graham was a key manager who started up the Fosterville Mine, in fact think he was the key manager. So that is saying something. Paul is high on Graham and says they are seeing steady improvements in operations at Beta Hunt.
 
We both talked about how the grade at Baloo is spectacular for a shallow open pit, way beyond what is normally mined in Nevada (some profitable mines are under 0.5 grams in Nevada). They are drilling there as they do not know how big it is yet. Months of good ore is known and worthwhile at 2ish grams but there could be quite a bit more.
He agreed they just were just plain lucky on HGO buy timing as gold broke out big time just after they bot.
 
All in all it was a positive call and I did buy 17,000 more today at about .28.  To the best of my knowledge RNC is 4-5 PE and is reaping benefits from the lower AUD is why bought. 


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