Don't worry your gold mining resident expert status here is not going to be challenged. I know a little about gold mining. I know quite a bit about investing in junior miners/explorers. The gold project is marginal. With inputs nicely calibrated (8% WACC?) the NPV is only 100m. Show me some sensitivity analysis with gold price lower (where it is going) and cost of capital higher. Show me an analysis that takes into consideration months of ramp-up and the inevitable associated costs. Few months back when HL was all the rage i said that it was just a way for the company to buy some time. The current model is back to CIL and perhaps HL in 10 months time (read never). Yes the company may even get finances but it will be expensive and at the end of the day it will be only the debt provider earning some money, not shareholders.
The exploration is a different cup of tea. Very unsuccessful so far but one never knows. A year ago (?) you and Shimmer were certain that the few nuggets found at -75m were surely going to lead to a new gold deposit. Of course it always fizzles out and you both quietly move to the next "big" thing. So yes i do know they already found some copper there but i would like to see some nice wide massive hits to be convinced.
I'm going to retreat now again and let you both do your thing. I keep a small holding in RNI because of a miniscule chance of the company stumbling across a good copper deposit.
AUR Price at posting:
8.6¢ Sentiment: Hold Disclosure: Held
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