GREY:RNKLF - Post by User
Post by
Geodan2on Mar 01, 2020 1:39pm
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Post# 30753069
Is it reasonable for RNKLF to 7.5 Bag in 10 months?
Is it reasonable for RNKLF to 7.5 Bag in 10 months? New RNC presentation is out https://www.rncminerals.com/presentations OK let's take a look as to where RNC will be in 10 months. "Ongoing aggressive cost reduction – targeting AISC of US$1,000 by end of 2020" By then think 150,000 oz run rate is very likely, ore sorter/s, Fairplay rich ore, FDV, etc. This is ignoring the two new high grade deposits they just found.
150,000 X $1650 gold = $227,000,000 revenue AISC = $1,050 (conservative) that is a $600 profit per oz X 150,000 = $90,000,000 profit X 15 P/E = $1,350,000,000 USD mkt cap, Current mkt cap = C$243 million at .40 Cad https://www.rncminerals.com/stock-quote
In USD = $181 million So to go to $1.35 Billion Mkt Cap = 7.46 Bagger Cad $2.98 a share, USD $2.22 a share.
But what happens when it goes over $1.50 a shares USD? Do we get a measly 15 PE with RNC being the biggest turnaround and growth story in the mining industry? From prior experience with Claude CLGRF, Fosterville, AG and others a 25 PE is more likely, especially since RNC will then have multiple new high grade mines in the pipeline in what is now the #1 rated part of the world to mine (Western Austrailia https://www.mining.com/western-australia-emerges-a-new-top-mining-destination/ )
So what happens with a 25 PE? That would be $2,250,000,000 mkt cap $4.97 Cad or $3.70 USD a share. That is a 12.43 Bagger . Just my opinion, but this scenario is realistic to happen.
If they just do 100,000 oz which they have surpassed already (an IMHO is a sandbagging figure) that is still a 7.5 bagger or $3 Cad and $2.21 USD. Rather amazing, Have doubled checked all the calcs, but please check again, maybe there is a mistake.
Cheers