Royal Nickel Corp. RNKLF

RE:RE:Eric Sprott about RNX. Sprott Money News May 15th '20.

[Pandora]

goldhunter11 wrote: Pierre,
Good catch!

Uncle Eric picked Jaguar as an example of cheap stocks that is " kicking out the cash" since this company has quite a bit of cash surplus and he just happens to own 49% of the company. However, RNX also belongs to his group of cheap stocks and he is saying out loud that these two has good "fundamentals" for good and cheap stocks. Paul Huet seems to be doing all the right things:
- stock buy-back (30Ms or ~5% OS, 15 April 2020 NR). Not sure if they are still buying back.
- acquire Spargos Reward (potential high-grade OP, near BH. They could mine Spargos instead of BH and not paying the current royalty to MMX, serving notice to MMX?)
- buyback the Morgan Stanley royalty.
- New name: Karora...and proposed a 11:1 roll back (Two comments on this:  "Karora Gold", or "Golden Karora Resource" would put the focus on gold; and why not roll back with 10:1 ratio to make it simpler. So, if one has 1Ms at $0.55/s it would become 100,000s at $5.5/s following the conversion (mathematically). Devide by 10 is simpler that by 11.
Paul Huet has been busy!
GH11
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pierreg wrote: Eric Sprott about RNX. Sprott Money News Weekly Wrap-up May 15th '20. My transcript:

Eric Sprott: « In a category of very cheap stocks and you can buy these stocks 3,4,5 times earnings […] RNX reported I think it was 2 cents US, their stocks at 4.5 times earnings […] they have good fundamentals, kicking out the cash. One of the great things about these companies. When you start kicking out cash at the rate these guys are kicking it you've got to do something with the cash flow. What are the choices? We can have a stock buy back. We can have a dividend increase. We are going to acquire somebody. These are very positive factors for stock prices. »

They at least said "up to" 11 to 1 and so far they have not pin pointed a time as to when they might take that action.