Royal Nickel Corp. RNKLF

RNX Strong gold production and high cash holdings

[pierreg]

Strong gold production and high cash holdings. Apr. 22nd '20.

Jrg Schulte
Jrg Schulte Research

German translated to English
« RNC Minerals is brutally strong even in times of crisis. After the devastating Australian bush fires, COVID-19 came! With a cool head and farsightedness, the company is still running at full speed!

RNC Minerals: Strong Gold Production and Large Cash Reserve | wallstreet-online.de - Full article at:
https://www.wallstreet-online.de/news/12429449-rnc-minerals-starke-goldproduktion-hoher-barmittel Inventory

Australian precious metals producer RNC Minerals (ISIN: CA7803571099 / TSX: RNX) reports over 24,816 ounces of gold for the first quarter of 2020, a first-class, consolidated production result from its 'Beta Hunt' and 'Higginsville' mines in Western Australia. Due to the strong production, cash and cash equivalents as of December 31, 2019 increased from approximately $ 34.7 million by approximately $ 3.7 million or 11% to $ 38.4 million. This greatly improved cash balance is due to payments in gold hedge agreements. As of March 31, 2020, there were approximately 5,500 ounces of gold in the hedge book that was created in connection with the acquisition and financing of Higginsville in June 2019 and will be exhausted in the second quarter of 2020. Chairman and CEO Paul Andre Huet made it clear that the company's first-quarter production results for the company were the third consecutive quarter of steady gold production results since the acquisition of the 'Higginsville' mine in June 2019. He continues to see RNC on track to achieve its own gold production forecast of 90,000 to 95,000 ounces at total production costs ('AISC') of $ 1,050 to $ 1,200 per ounce for the full year, provided that there is no significant business interruption due to the COVID 19 virus spared.

“Over the quarter, our operations generated strong cash flow despite the significant logistical challenges that came from the bushfires in Australia and the adverse weather in Western Australia in January. The fact that we have achieved these excellent results in difficult times is testament to the quality, expertise and commitment of our Australian operations team. ”Paul Andre Huet


The company currently does not expect production interruptions as a result of COVID-19, but nevertheless takes precautions in the event of an emergency. The most effective way of doing this is to build up ore stocks from the three mines: 'Beta Hunt', 'Baloo' and 'Fairplay North', which already proved to be the right measure for the bush fires in January. The now high level of cash of around USD 38.4 million allows the company to buy back its own shares in addition to its ongoing exploration and production investments. As RNC Minerals announced a few days ago, around 30,415,198 common shares (around 5%) are planned within one year to buy back the shares in the 'Freefload' via the market. RNC Minerals presents itself as crisis-resistant and apparently gets a good grip on problems that arise, despite such adversities as the severe bush fires or the COVID-19 pandemic, in which operations did not have to be interrupted and work continued to be carried out economically. At the latest now, after another difficult quarter, which, however, all companies worldwide had and will certainly continue to have, RNC Minerals with its persistently good production figures and a pre-tax margin of 40-60% should come into the focus of investors, especially since the shares still are valued so cheaply that their own share buyback program was launched! Incidentally, the company expects to continue the excellent performance of the first quarter. Best regards, Jrg Schulte »
https://www.wallstreet-online.de/nachricht/12429449-rnc-minerals-starke-goldproduktion-hoher-barmittelbestand