GREY:RNKLF - Post by User
Comment by
goldhunter11on Apr 20, 2020 4:32pm
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Post# 30931563
RE:RNC Minerals and significant anticipated fuel savings
RE:RNC Minerals and significant anticipated fuel savingsFuel Consumption: It's interesting to know that they generate their own power at Higginsville, presumably by running diesel power generators to produce electricity. $1M for every six weeks would mean approximately $9-10 M/year. If they could take advantage of the Saudi/Russia oil war (price dropped like a stone) the price of fuel could be significantly reduced, perhaps to a tune of a lot more than 10%.
Especially, when oil price continues to crash (to the negative territory) even after Saudi and Russia agreed to end the "oil war". See the price chart (so much for buying oil cheap for storage in strategic underground facility; apparently people/countries are simply running out of storage facility, so producers have to pay buyers for the oil to be taken off their hands???) in the link below.
https://www.cnn.com/2020/04/20/business/oil-price-crash-bankruptcy/index.html
GH11
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pierreg wrote: Cantor Fitzgerald Canada, Mar. 27th 20: « Operating margins stand to benefit from extraordinarily weak oil prices, a strengthening gold price and a weaker Australian dollar. » https://cantorcanada.com/sites/default/files/20200327RNX.pdf Red Cloud, Apr. 16th '20: « Continue to favour gold miners as COVID-19 related tailwinds should drive margins and stocks higher. We believe that with the gold price reaching new 12-month highs (up 8% since Feb 27th), energy costs at decade lows and for the most part weakening local currencies, we believe that companies that show QoQ financial improvements should outperform. » https://cdn.ceo.ca.s3-us-west-2.amazonaws.com/1f9hc13-20200415-Q1-2020-Reporting-Preview-and-Commodity-Price-Update.pdf Graeme Sloan, Mar. 26th '20: « As for the fuel, the fuel prices is somewhat set, although we do get some -- certainly get some relief from the -- and we spend an enormous amount on fuel a year given that we self-generate their own power at Higgins Ville. And so we would spend close to sort of $1 million every six weeks or so. And so it's a big chunk of money and we expect to see savings around that 10% what we'll be looking for, so it has a significant impact on our overall cost.» https://ceo.ca/rnx%20dd?70738e0a30ec