Royal Nickel Corp (RNX-T)

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.

They were trying to sell their Australian gold assets and found gold in the process. There is much talk of the Quebec nickel project that would require a $1 billion of investment. They ran out of patience waiting for projects to be developed, so have not bought back into it.

They did a royalty deal. They are getting caught up in the cobalt story. He has been in and out of the name. It is a morphed animal. You will get a little more press on it. He is out for now. He is watching it.

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.

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 2^nd half of 2017. It will probably generate $15-$20 million in cash flow in the 2^nd half of 2017.

(Market Call Minute.) Doesn’t understand the gold deposit well enough to own it at this price.