Royal Nickel Corp. RNKLF

Higginsville

[arh0070]

First the founder members of the booster club Pierre ,geodan(news letter writer who has been constantly pumping rnx for a year now)and who has been consistently wrong about rnx prospects and red cloud ;none knew about the royalties on a lot of the higginsville gold reserves .its impossible to find it anywhere so it was kept very quiet .Would you buy a used car from these guys????
If you go back and look at the westgold website you see a comment that higginsville operations generated about 1.5 Million  in cash flow in 6months .they had to spend about 6 million on plant repairs-grades during that time .   There is also a comment about the mount Henry reserves being low grade and hard so not very profitable to process .
Second the optimistic calculations presented by the booster club does not necessarily reflect what is really going to happen ,since the changes are on 10,000ounces per year for 10 years (ie 100,000 ounces .Morgan Stanley are sharp cookies so they will not reduce royalties unless there is something in it for them .Likely the reserves are low grade ,hard to mine and thus not economic to mine with the prior royalty regime ,so this in my opinion is no great bonanza for rnx just enough for them to mine these reserves and make a little money especially if the mill has surplus capacity .Mr market seems to agree on further reflection and rnx is down today .Clearly over time these small incremental changes thato Mr Huet is making will have an impact it will take for rnx to dig itself out of its hole but this in my opinion remains just a trader stock ,sell when it pops up and buy when it goes down .