Royal Nickel Corp(RNX.TO) now Karora Resources(KRR.TO)

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#1 Wed, Jun 17, 2020 - 3:49pm
silverseeker
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Royal Nickel Corp(RNX.TO) now Karora Resources(KRR.TO)

Name changed from RNC to Karora since Nickel is not presently driving company revenues. New ticker symbol in US is "KRRGF".

I find the present market cap attractive based on:

  • 100k/annum Gold production;
  • lowering AISC, eliminating royalties, growing FCF
  • Agreement for acquisition of Spargos Reward High Grade Gold Project
    • Due diligence underway Potential to fast track new high-grade gold production into project pipeline. Both open pit and underground opportunities: High grade potential as shown by high grade drilling results including 14m @ 46.13 g/t gold in drillhole 19SPRRC0042

Considering the speculative interest in similar junior stage projects; and given their locale in highly productive region of Australia; this company can drive exploration from cash flow... A reverse split would tighten up the share structure; sure... but $2000 gold could drive this to $2-3 a share as well, even without a reverse split.

New website and presentation is at: Karora Resources

Edited by: silverseeker on Jun 17, 2020 - 3:50pm

A grain of sand in the gearbox of tyranny

Wed, Jul 1, 2020 - 11:00pm
Gasivs Buttox
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Karora (RNC) must be a disappointment for Eric

Price rose with Eric’s purchase price of $0.46 in mid-January 2019 to $0.75 in mid Feb but was then followed by gradual decline to $0.38 in mid-May/2019.

TORONTO, Jan. 16, 2019 /CNW/ - RNC Minerals (TSX: RNX) ("RNC" or the "Company") is pleased to announce that it has closed its previously announced bought deal and concurrent private placement financing of a total of 19,565,000 common shares of the Company at a price of $0.46 per common share for aggregate gross proceeds of $8,999,900. Mr. Sprott now beneficially owns or exercises control or direction over 47,737,042 common shares, representing approximately 10.2% of the outstanding common shares

May15/19 Quarterly Report revived interest from $0.38 to $0.71 with release of following drill results:

RNC is on track to complete a resource update by the end of the second quarter of 2019 and will shift its drilling focus from resource definition to a broader exploration campaign to test the substantial exploration potential of each of the four shears on the property. Highlights from assays received to-date include (all drill intervals quoted are true thicknesses):

  • 1,017 g/t over 2.00 m, including 7,621 g/t over 0.27 m in hole WFN-029
  • 395.9 g/t over 4.75 m, including 2,210 g/t over 0.85 m in hole WFN-063
  • 468 g/t over 0.21 m in hole AZ13-156
  • 119 g/t over 6.40 m, including 1,406 g/t over 0.50 m in hole AZ15-013
  • 16.8 g/t over 27.8 m, including 748 g/t over 0.53 m in hole WFN-071

However, by Jun15/19 the stock continued to gradually decline to its Oct/19 low of just $0.33. Dec/Jan/Feb followed with prices hovering at Eric’s purchase price. Then came March/2020 and RNC crashed with entire sector touching a low of just $0.195 followed by a rise to $0.57 in mid-May and yet another decline until its name change in mid-June.

I wonder just how patient Eric can afford to be with this kind of performance.

Thu, Jul 2, 2020 - 11:58am Gasivs Buttox
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Much more patient than the average retail trader...

Gasivs,

I doubt Eric has any concerns; as the last time he mentioned RNC with Craig was a few months back in the weekly wrap. He is likely just watching the story play out, which is a transformative speculation at $1700+ gold prices.

I'm looking at the surrounding Gold resources already drilled off by the major miners at adjacent properties; (page 25-26 of the June presentation)... With a producing mill and cash flow from HGO now able to fund exploration; and the recent reduction in royalties, it seems a very low risk speculation to me that they'll be announcing drill results on a regular basis going forward.

Further, I am amazed that their Canadian Nickel holdings carry near zero market NAV. If Nickel begins to rally in response to more aggressive legislation of electric vehicles; that deposit will become another Gold mine.

A grain of sand in the gearbox of tyranny

Tue, Jul 14, 2020 - 10:57am
Libero
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Just as I thought

Sprott invests big in Karora. Nice head fake though.

https://ceo.ca/%40newswire/eric-sprott-significantly-increases-investmen...

Thu, Jul 30, 2020 - 8:32pm
silverseeker
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Share Consolidation Effective As Of Market Open On July 31, 2020

Press release today. 4.5:1 reverse split yielding 144M share float post split.

They are actively monetizing non-core assets, and I suppose $40M for the Nickel project will pay off if filling the treasury to focus drilling on their core properties produces Gold resources.

Good speculation here... If they post some good drill intercepts; or hit another Gold boulder; the shares should run with a now tight float and 100,000+ ounce production.

A grain of sand in the gearbox of tyranny

Thu, Sep 10, 2020 - 1:17pm
silverseeker
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Drill results support page 26-27 of July Presentation

Beta Hunt Drill Results

Look at the area map... page 26-27 of the July presentation which lays out the regional potential:

  • Kalgoorlie(50 M ounces) Barrick / Newmont
  • St Ives (13 M ounces) Gold Fields

Karora is just getting started with the drill bits and is now going to spend A$15 Million this year, and no share dilution. Re-rating from junior explorer to a growing producer on tap...

A grain of sand in the gearbox of tyranny

Tue, Nov 10, 2020 - 11:55am
silverseeker
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Q3 Results coming Nov 12th

Latest press release features continuing very strong drill results.

IMO, with current market cap only ~$350 million; Karora is offering huge upside via these drill results and updated resource guidance now pending before year end.

11/9/2020 Drilling updates and regional mining strategy announced

A grain of sand in the gearbox of tyranny

Thu, Nov 12, 2020 - 10:44am
silverseeker
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Q3 results: Forward PE of 3?

Q3 results - Nov 12th 2020

quick scan of results; supports coming re-rating of this company as a multi-mine producer.

A grain of sand in the gearbox of tyranny

Fri, Nov 27, 2020 - 11:04pm
silverseeker
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Nov 19th press release

Adding initial drill results press release, fantastic grades at open pit depths on newly acquired Spargos Project:

Karora drills 29.8 g/t over 19m and 27.3 g/t over 15m

A grain of sand in the gearbox of tyranny

Tue, Dec 1, 2020 - 9:31pm
silverseeker
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Crux Investor- youtube interview with CEO Paul Huet

Excellent updates included: Reserves and Resource Update by year end and maiden growth plan in Q1 2021. I found this link on Stockhouse thread; including company filing of common share repurchases started...

Karora Resources (KRR) - Higher-Grades Exciting the Market

A grain of sand in the gearbox of tyranny

Tue, Dec 15, 2020 - 2:43pm
silverseeker
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Continued under the radar...

62,000 shares traded so far today.

Eric Sprott's; "you gotta be sitting in the room; alone... ahead of the party"; quote is ringing in my ears as I am shaking change out of couch cushions.

Market cap on this is @ explorer price; for a 100k ounce/year producer.

A grain of sand in the gearbox of tyranny

Wed, Dec 16, 2020 - 10:10am
silverseeker
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Karora Updates Resources; this should help!

Dec 16th: Karora Announces updated Resource and Reserves

Huge adds via this year's drilling. Management has delivered on time, and shows sustainable high margin reserves growth. This was the missing piece needed to show that the Beta Hunt plant could be stuffed with profitable ore for several years... and the grades are increasing as expected.

The cutoff date for calculations in this update was Sept 30th so the recent Spargos drilling is not contained in these headline #s.... per press release:

  • Due to the very strong drilling results only recently received, an updated Spargos Reward Mineral Resource and Reserve will be completed in the first half of 2021 to incorporate the new high grade zone announced on November 18, 2020.

A grain of sand in the gearbox of tyranny

Tue, Jan 12, 2021 - 8:29pm
silverseeker
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Karora earns 2021 'Top Pick' from Seeking Alpha

Karora Resources: Massive Reserve Increase Emboldens The Investment Thesis

I almost missed this article; good intel posted over on Stockhouse Bullboards.

Karora announced Q3 production numbers Oct 14th; so we should expect Q4 numbers soon, which will include the course gold hit and some Q3 production carry over... this could be a record quarter, and kick off of an amazing year; from junior to mid-tier producer with PE multiple expansion.

A grain of sand in the gearbox of tyranny

Thu, Feb 11, 2021 - 9:28am
silverseeker
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Latest update from CEO

Hat tip to Libero for sharing this latest update from Karora:

Gold everywhere we look

The upcoming growth plan press release will likely result in a rerating of Karora to mid tier.

A grain of sand in the gearbox of tyranny

Tue, Feb 23, 2021 - 2:40pm
Guy Fawkes
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Seems to be a real Sleeper

All the analysts are targeting a min of $5.50 Cdn and we are sitting at $3.15. I thought the Q4 numbers would have been out by now as well...