Opinions Joe Mazumdar
Royal Nickel Corp RNX.TORISKYOct 16, 2018
$0.90
Stock price when the opinion was issued
$0.48
As of Jun 16, 2020. Market Open.
Mining
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WATCH
They used to be a nickel asset but the focus is now on gold assets in Australia. It is a low grade/high cost mine. They found the gold zone was small but now got into another zone with fantastic grades. The market has soared. They have now mined out the high grade zone. The risk reward is unfavorable at this price. He is watching the name.
Jon CaseNo
Mining
WATCH
You have to have a lot of patience with these stocks. A lot of companies go through these changes where they transform to something completely different. It looks like it is going through the phase of the next press release causing the next upside move. If it gets above $0.90 it would be a breakout and definitely above $1.10. It has to break out before you buy it. If you bought below $0.10 then take half your position off.
COMMENT
In some way, this company has transitioned positively. They now have revenues. Have lowered their operating costs. Still losing a lot of money, about $12 million last quarter. A few years ago, they had around 90 million shares, but now have about 307 million shares, which makes it very, very hard on the upside. There could be a further dilution. Speculative.
Mining
COMMENT
This is a small-cap company. He recently did a flow-through financing for them. Despite the name, this is going to be producing gold and copper in the 2nd half of 2017. It will probably generate $15-$20 million in cash flow in the 2nd half of 2017.
Dennis da SilvaOwned
Mining
Doesn't generate much free cash flow but occasionally they find very high-grade nickel like recently. This has helped their debt. They are now focused on Beta Hunt in Australia. It's a nice speculative play.