RNC Gold Inc fka RNC

[amarksp]

Believe Bonanza drill results will be out in next 2 weeks or so. 2Q05 earnings expected by month end, RNC is well managed in regard to getting their financials out early/timely... RNC going through the process to get AMEX listing and this should be obtained within next 9 months.

Project US$.06 EPS for 2Q05, but remember most of this is via non-cash items (i.e. CORNAP reversal). The expected significant improvement in the 2Q05 balance sheet and positive retained earnings will be the highlight of the 2Q05 financials.

Expect to to see Jennings update their analyst report and to see Canaccord issue an initial analyst report. Canaccord & Jennings have 14 months remaining to exercise their broker warrants so you can count on them to issue new analyst reports with a target price well over C$1.21 by year end...

"Canaccord Capital Corporation and Jennings Capital Inc (collectively “the Agents”) received a cash commission equal to 7 per cent of the gross proceeds raised under the private placement. The Agents also received broker warrants exercisable to purchase 626,640 common shares of the Company at a price of Cdn$1.21 per common share for a period of 18 months from today. "

The wildcard is the San Andres acquistion via RNC's right of first refusal. If this acquisition can be made on accretive EPS and cash flow per share terms, this will be significant since RNC will have annualized production over 175,000/ounces by year end 2005 and over 225K annualized ounces by year end 2006:

Bonanza=32K
La Libertad=70K
San Andres=75K
Panama=48K

It will be difficult for analysts to ignore a 200K ounce/yr gold producer, IMO, as this will vault RNC to near intermediate producer level. Nonetheless, RNC has got to start meeting their 25K quarterly production and $285 cash cost targets starting this year and preferably this quarter.

I am growing weary investing in potential and am ready to start seeing results, namely annual cash flow per share over US$.20. Do the math, RNC can easily hit $.20 CFPS with gold prices at $430 on Nicaragua operations alone, they just have to crank up Nicaragua production to over 100K ounces to realize production economies of scale. No more missing production and cash cost guidance, now is the time for RNC to start generating cash.