Royal Nickel Corp. RNKLF

Coarse gold goes straight to the bottom line

[pierreg]

Red Cloud: « Coarse gold goes straight to the bottom line. Since mid-2018, RNC has discovered ~39,632 oz of coarse gold from a 300 by 50 by 5m portion of the A zone (Figure 3). The company’s new policy is to process this gold, and for metallurgical reasons has to be fed into the mill in small quantities, this revenue effectively goes straight to the bottom line, as there are minimal additional costs to mine (discovered as part of development) or process these ounces. As an example, we expect the 4,950 oz found in H2/19 to benefit Q4/19 and Q1/2020 production. FOR OUR ESTIMATES, WE ASSUME THE COMPANY DISCOVERS 10K OZ OF COARSE GOLD EACH YEAR (~2019 run-rate) and we believe this accounts for both the coarse gold finds and the positive call factor we expect in the “High Grade Contact Zone” »
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