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Royal Nickel (RNKLF) (RNX.TO), which is commonly referred to as RNC Minerals, provides one of the most exciting gold mining stock opportunities in a long time. In several ways, it compares to the Comstock Lode as an investment in the first year of that deposit. Today it likely has a Price/Earnings ratio of less than 1, based on the current run-rate of its Beta Hunt Mine. Yet, the stock is heavily shorted, evident by the fact short sellers have to pay over a 60% interest rate to borrow the stock. Those factors combined provide a special opportunity for investors. There may be some confusion on the name of the stock, although the stock symbols are unchanged. Royal Nickel changed its name to RNC Minerals and only refers to itself on its website and in press releases as RNC Minerals. Many financial sites have the old name. I will refer to it as RNC in the rest of the article.
RNC was an almost unknown stock just two months ago. Yet, in the last month, it has become the highest volume stock, consistently in the top three for volume on the TSX. What happened?
Source: RNC Minerals
The above is what happened, the company made the richest gold bonanza strike in the history of the world in an older marginal nickel mine (Beta Hunt in Australia) it was trying to sell. The for-sale sign has now been removed and burned according to CEO Mark Selby.
The Beta Hunt Bonanza exceeds the original bonanza
