RNC Minerals

Website: www.rncminerals.com
Primary ticker: TSX:RNX
Stage of development: Exploration, Production
Commodity: Gold
Project to promote: Higginsville mines and mill; Beta Hunt Mine
Project location: Western Australia
Company presentation: click here

Live financials

Cash: CAD$38M
Debt: CAD$32M

Major shareholders:
Eric Sprott – 8%
Westgold Resources – 5%
Van Eck Associates – 4%
Invesco Oppenheimer – 3%
RBC Global Asset Management – 2%
Management Ownership – 2%

RNC is focused on growing gold production and reducing costs at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations (“HGO”) in Western Australia. The Higginsville treatment facility is a low-cost 1.4 Mtpa processing plant which is fed at capacity from RNC’s underground Beta Hunt mine and open pit Higginsville mine. At Beta Hunt, a robust gold mineral resource and reserve is hosted in multiple gold shears, with gold intersections along a 4 km strike length remaining open in multiple directions. HGO is a highly prospective land package totaling approximately 1,800 square kilometers. RNC’s common shares trade on the TSX under the symbol RNX. RNC shares also trade on the OTCQX market under the symbol RNKLF.

Management Profile

Paul Andre Huet, Executive Chairman
– Over 30 years mining industry experience with a proven track record of building shareholder value
– Former President, CEO and Director of Klondex Mines from 2012 to 2018
– Serves on the inaugural Board of Havilah Mining Corporation and has served on several non-profit and publicly traded company boards.


What is your rationale for attending 121 Mining Investment?

Raise investor awareness of gold focus, production growth and strong free cash flow


What recent news would you like to highlight to investors attending?

• Q1 2020 gold production of 24,816 ounces – on track to meet or exceed 2020 guidance of 2020 gold production guidance of 90,000-95,000 ounces and AISC of US$1,050-$1,200 per ounce (assuming no significant interruption in operations as a result of the COVID-19 virus)
• March 31, 2020 cash balance of $38.4 million, up $3.7 million from December 31, 2019


What are your key goals for the next 3, 6 and 12 months?

6 Months:

Reduce AISC costs to US$1,000


What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

RNC is closely monitoring the current COVID-19 virus situation, however the company has maintained 2020 guidance of 90,000 – 95,000 gold ounces at AISC of US$1,050 – $1,200 per ounce sold. To-date there has been no interruption at the operations due to COVID-19.


In a sentence, what do you think makes your company such a compelling investment?

We view the company as undervalued relative to peers. RNC has established a track record since H219 of beating guidance and is targeting ongoing AISC reductions with a target of US$1,000 per ounce or better by the end of 2020.

Analyst Insight – provided by Independent Investment Research

RNC Minerals is a TSX-listed multi-asset mineral resource company with a portfolio of nickel, cobalt, and gold production properties.

The Higginsville treatment facility is a low-cost 1.4 Mtpa processing plant which is fed at capacity from RNC’s underground Beta Hunt mine and open-pit Higginsville mine. At Beta Hunt, a robust gold mineral resource and reserve is hosted in multiple gold shears, with gold intersections along a 4km strike length remaining open in multiple directions.

HGO is a highly prospective land package totalling approximately 1,800 sq km. In addition, RNC has a 28% interest in a nickel joint venture that owns the Dumont Nickel-Cobalt Project located in the Abitibi region of Quebec. Dumont contains the second-largest nickel reserve and ninth largest cobalt reserve in the world.

RNC is currently focused on the integration of its Beta Hunt Gold Mine with its Higginsville Gold Operation (HGO) in Western Australia. The Beta Hunt Measured and Indicated Mineral Resource estimate comprises 944 koz (10,104kt at 2.9 g/t), along with an Inferred Mineral Resource of 406 koz (4,109 kt at 3.1 g/t).

The robust Beta Hunt gold mineral resource is underpinned by multiple gold shears with gold intersections along a 4km strike length, which remains open in multiple directions. The gold mineral resource is adjacent to an existing 5km ramp network. RNC has a 100% interest in HGO, which is comprised of a low cost 1.4 Mtpa gold mill and a substantial portfolio of gold tenements.

At Beta Hunt, RNC is the first owner to focus on drilling deeper within the Lunnon Basalt in its search for gold, as previous bonanza-grade occurrences were associated with the nickel-sulphide bearing contact between the Lunnon Basalt and the overlying Kambalda Komatiite. This has yielded spectacular, new high-grade gold discoveries at Beta Hunt.

During May 2020, the company entered into a purchase agreement to acquire the Spargos Reward Gold Project, which contains a historical JORC 2012 Mineral Resource Estimate of 112,000 oz (785,800 tonnes @ 4.4 g/t) indicated resource and 19,000 oz (151,000 tonnes @ 4.0 g/t) inferred resource.

RNC also announced a proposed name change to Karora Resources Inc.