Royal Nickel Corp. RNKLF

$RNX: Why consistent foundational profits are key

[pierreg]

Insightful post by @Huntore on CEO.ca October 26th 2019: 

« We have seen this before – Gold over $1,500 – in fact it was over $1,550 almost continuously for 20 months between July 2011 to April 2013. This is still well below the all time high of $1,890 in August of 2011 so over $1,500 is by no means extreme by any measure; it may even be reasonable under the circumstances of events we are faced with on a day to day basis. Now admittedly we are entering a period of gold demand increasing but it is harder and more expensive to find gold in larger deposits as well.

We have witnessed the sales of paper gold and not real gold to create the illusion that gold is being dumped to create the ruse that purchasing it would bring little if any capital gain which had kept the price of gold low for quite sometime.

Manipulation is how this happened...... it is as if the Banking and Brokerage Industries were trying to create the environment to limit investment into gold. This I believe was to spare them the experience of admitting they are facing a bear market coming to the industrial market, which results in a dramatic drop in their ability to be profitable. They well know that if gold and commodities are on the move up they can’t have a bull market happening simultaneously in the industrial market. This puts the boots to the “low or no inflation claim they depend so desperately on to operate and profit from. I say, “ Who the heck believes that anyway.”

It is widely believed that Russia and China want the US dollar knocked off it’s perch as the world’s dominant currency which in turn would shift the pricing of gold and commodities as well. How this will be accomplished is to be explained by much brighter minds than mine for sure, but it is their desire nevertheless. On a side note – It took Germany over 4 years to repatriate their gold back to the homeland, it is a wonder what was the hold up?

This increase in gold prices will aid the gold miners with better opportunities to report profits as they reach for higher production and stabilize their costs to produce. This environment is going to leave the still- undervalued gold miners more attractive fundamentally which in turn will support bigger capital inflows and eventually much-higher share prices to follow.

There is nothing more important than RNC Minerals at this time to show consistent foundational profits as this will drive the share price to reflect a reasonable multiple of their underlying company profits. We have seen in the past the herd mentality and greed (September 2018) disconnect the share price from these fundamentals and we have witnessed extreme fear (Private Placements, dilution and Capital expenditures) change shareholder sentiments which disconnected the share price from these fundamentals as well.

Now I have one and only one question –

What are the prospects for RNC Minerals to obtain significant growth?

They will obtain this growth through the expansion of their existing assets over the next two to three years.

I believe it is time for management to prove to the shareholder that each and everyone of us is fundamentally the most important asset this company has. »