Royal Nickel Corporation fka RNX

[finesand]

SP now at 28% diluted $2/sh Dumont Fair Value w/ Clean Balance Sheets

(all eyes on this)

Warrants & Options from 9/11 Presentation slide 52:

- Warrants 23.2M @ C$0.43 avg = C$9.938M
-- 16.5M @ C$0.50 = C$8.25M
-- 5.9M @ C$0.24 = C$1.416M
-- 0.8M @ C$0.34 = C$0.272M
- Options 35.1M @ C$0.33 = C$11.583M
- Total W + O 58.3M @ C$0.369 avg = C$21.521M

2Q18 C$ 17.7M - 13.6M = 4.1M six month (17.7M was the discontinued mine deduction, no more)
2Q18 C$8.2M annually
9/20 $38M finding = C$49M -> C$57M CAD annually
- C$0.16/sh @ 356M OS
- C$0.1283/sh @ 482M fully diluted
If recurring .. and a real mine w/ much more to dig, you can multiple that by 10.

Cash: C$7M (2Q18) + C$49M (finding) = C$56M
Cash: C$7M (2Q18) + C$49M (finding) + C$20M (Warrants+Options) = C$76M

2Q18 OS 482M fully diluted
2Q18 Current Assets C$38.71M, Total Assets C$92.71M
2Q18 Current Liabilities C$72.28M (Debt C$22.21M)
2Q18 Total Liabilities C$82.20M
2Q18 Non Controlling Interest C$11.659M
2Q18 Current_Assets - Total-Liab C$(43.49M) -> Negative Working Capital

C$92.71M (Total Assest 2Q18) + C$49M (finding) + C$20M (Warrants+Options) = C$161.71M Total-Assets 3Q18
RNC SH Equity C$161.71M - C$82.20M - C$11.659M = C$67.85M or C$0.141/sh

C$38.71M (Current Assest 2Q18) + C$49M (finding) + C$20M (Warrants+Options) = C$107.71M Current-Assets 3Q18
RNC SH NCAV C$107.71M - C$82.20M - C$11.659M = C$13.851M or C$0.029/sh

Company is already NCAV Positive

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OS 482M fully diluted
2Q18 Total Liabilities C$82.20M
2Q18 Non Controlling Interest C$11.659M
9/20 $38M gold finding = C$49M

200dma b4 findings was C$0.18/sh
- Cash_1 was C$7M
- MCAP_1 $86.76M fully diluted
- EV_1 C$161.96M (MCAP_1 + Total_Liabilities - Cash_1)

Before 2018-03-22 SP depression (no funding, selling Beta Hunt), SP support was C$0.25/sh
- Cash_1 was C$7M
- MCAP_0 $120.5M fully diluted
- EV_0 C$195.70M (MCAP_0 + Total_Liabilities - Cash_1)

Now @ C$0.56/sh SP
- Cash_2: C$7M + C$49M (finding) + C$20M (Warrants+Options) = C$76M
- MCAP_2 C$269.92M fully diluted
- EV_2 C$276.12M (MCAP_2 + Total_Liabilities - Cash_2)
- EV rose about C$114.16M or +70.49%
-- 2.33x the C$49M findings
-- 1.65x the C$69M findings + Warrants+Options

MCAP_1b by static EV_1 plus cash value addition, no growth
- MCAP_1b C$155.76M (EV_1 - TL + Cash_2) or C$0.323 fully diluted

MCAP_0b by static EV_0 plus cash value addition, no growth
- MCAP_0b C$189.50M (EV_0 - TL + Cash_2) or C$0.393 fully diluted

Dunno how depressed MCAP was due to debt and all that .. but surely much more
So the SP move up until C$0.393/sh seems to be just a correction on findings and Warrants
A simple balance sheet correction.

Based on C$0.25/sh base, leading to balance sheet adjusted SP due to finding + Warrants of C$0.393/sh base.
Therefor SP only rose about 42.5% regarding to recurrent revenues in Beta Hunt @ C$0.56/sh.

Income and growth wise:
- 2Q18: C$ 17.7M - 13.6M = 4.1M six month (17.7M was the discontinued mine deduction, no more)
- Around C$8M annually operational income

-Annsual income: C$49M findings + C$8M previous = C$57M
-- C$0.16/sh @ 356M OS @ P/E 1
-- C$0.1283/sh @ 482M fully diluted @ P/E 1
If recurring .. and a real mine w/ much more to dig, you can multiple that by 10.

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9/11 conference after 1st big finding http://www.rncminerals.com/events?item=84

- More to come .. $500M+
- Result of a long process
- CapEx Beta Hunt until July '18: C$8.1M
- Grades increase .. not a one-off!
- Pyritic Settlements: A Continuous unit? Limited? A: Formations are continous a regional feature!
- If Pyritic comes in contact w/ Shear zone there is more concentration? A: Due to structural, chemical controls: Yes!
- Whereever there is shearing + pyritic elements are: more gold concentration probability: yes
- After 9/11 finding (significant cashflow): finding out how much more gold is there, then modelling cash flow & value etc
- More drilling analysis etc
- Underground Volcano -> Pyritic sediments
- Pyritic Black Smokers
- Multiple horizons/levels? Sediment has 2 bands.
- Still need to understand the significance ..
- Finding is from one band in particular
- Do we expect to hit more gold? Yes. (was 9/11 b4 they found more)
- Zone: 10oz/tonne !!! (-> Moon!)
- Other areas 2-3g / tonne w/ usually mining. Expect to be 5 times higher .. but we can not predict that (yet)
- Strategy: Significant mine, goal is to get to 4-5g/tonnes ..
- Continuous operations
- 6 active mining levels
- Ramp access, 500m depth
- Using several diff mills. Closest mill is 25km away
- 100% Lease perpetual, Lessor is mining next to it w/ an open pit
- Lease Terms: ... will be handed over to one guy (maybe he is interested in the company lol)
- NCAV position? With the cash proceeds we should be in net cash positive!
(for sure as shown above, w/ last findings NCAV++)

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9/11 slides, p12 *Note: Gold Recovery is on-going and total amount recovered will be determined in about 2-6 Weeks

Note: Gold Recovery is on-going and total amount recovered will be determined in about 9/25 - 10/23

https://www.scientificamerican.com/article/earthquakes-make-gold-veins-in-an-instant/