Hello everyone, Eric Sprott and why he is banking on RNX:
- Philosophy on investments and multi-baggers, from Jekyll Island Series: « Some things are speculative and some things are reasoned investments, I like to think you make a reasoned investment decision, that some guy is going to call a speculation, well the down side is kind of limited here and the upside is just staggering in fact one of the things you look for, is you look for an opportunity where you can get multiples on your money but your not taking as much risk of losing 100% so for example if you can see a situation where I can make 10 times my money, worst I can do is lose 50% I find that’s a good bet, if you’ve done the thinking I see the 10 bagger is going to work here or a 50 bagger or a 100 bagger ».
-Leader, from Financial Post, March 1st 2018 « Part of what comes with a guy like Eric Sprott is when Eric Sprott says he’s done his due diligence and is investing in a company, it’s a way for retail Canada … to follow that thought leader».
-RNX will be his 4th biggest holding once the private placement closes: currently 41,216,042 shares at 16,486,417 USD or $0,40 US per share.
-Eric Sprott on the week behind us transcripts, his due diligence:
Eric Sprott on the week behind us. -Weekly Wrap-Up (September 14, 2018)
Craig: Eric, let's end the week on kind of a fun note. There was some news this week out of Australia. It doesn't have anything to do with the Pilbara, which you and I talk about quite a bit. But there was discovery of the largest gold nugget ever found, at least so far on planet earth. Made some headlines. It's an interesting story, and I know you've got some details on that too.
Eric: Well, the most humorous thing about it is, this was found by a company called Royal Nickel. Which I happened to be a big owner of because they had found things like this before at a different level in the mine, okay? And I thought, well, this could be big and they were mining nickel and gold. And so I was a pretty big shareholder. And if you'd asked me two weeks ago where this stock was going, I would've said, you know, they have a shot at going broke here. And then all of a sudden there's this announcement on I guess Sunday night or Monday morning that they had a blast in one of the holes and over a 3 meter by 3 meter by, I don't know, 2 or 3-meter blast that they recovered 9,600 ounces, which is an incredible. It was something like 70 ounces a ton, 70 ounces a ton. Unheard of.
And these are beautiful nuggets. In fact, they are so beautiful that they will either be sold as nuggets or they will be held by the Australian authorities. Now so with the company called Royal Nickel, it's listed in Toronto and their symbols are RNX. The company had a webcast on Tuesday. The webcast is available. I suggest any serious investor should go and look at that webcast and see what they're saying and I'll try to paraphrase it for everyone. So they were mining at a level and they said, well, maybe we should go down to this level down here because we have a sediment that goes across on a lateral extent that could cause gold to precipitate into what's called the [inaudible 00:14:09] sediment. And, sure enough, they go down there and wow, this is where they had this discovery. And they've said in their presentation that this sediment is omnipresent at that level throughout their tenement.
What happens is, where the sediment meets a structure that had been metal bearing, where it meets that structure gold seems to precipitate in very large quantities. And they have struck at least two two-kilometer structures, okay? So there's a big potential here that this is not going to be a one-off. It's already sort of the biggest discovery in a small amount of tons that the world has ever witnessed. And it is the world's largest nugget now. So it would be worthwhile for people to think about whether this is likely to carry on. The suggestion in the webcast is that it does carry on. So we're all going to stand by and find out if we have a world major discovery here. We'll see.
Eric Sprott on the weak U.S. dollar -Weekly Wrap-Up (September 21, 2018)
Eric: I also want to talk about RNC minerals. That's the company that I might've mentioned it a week or two ago that found these huge nuggets in Australia. And they said, hey, we come down to 600 ounces of nuggets, in one blast and on what day would have...on Wednesday. I guess they came out and said, well, it's not 9,600 anymore. It's now 24,000 ounces that they've taken out of this one little pocket here. And of course, now the stock's up 500% from where it was trading at about a month ago with seven cents.
But that's a lot of money. And the funny part is the stock didn't go up as much yesterday as the value of the announcement. In other words, they announced they found an extra 50 million ounces, which is worth about close to $20 million US. Stock didn't go up by $20 million. So, God forbid that they continue to find this pile of gold along the many kilometers of structure that they have, and I can't say that they will or won't, but it's a new sort of geological interpretation in where this sediment meets a structure, the gold is in place and we're only just...this was our first foray into the structure, so it will be rather interesting.
I announced yesterday that I went to 10% on the stock, so that's public information. You got to do your own due diligence here, you know. These things are all punts in a way. You've got your fingers crossed. You got to guess at where it's going to go. I don't know where it's going to go, but you guess, what's the upside versus the downside? And you have to make up your own mind. So That's interesting.
Eric Sprott on the state of U.S. politics - Weekly Wrap-Up (September 28, 2018)
Now I want to close off with the RNC Minerals and they're the ones that have come up with these huge gold boulders in Australia.
And, they put out a release, I guess last week showing connectivity between what they call their level of 15 up to their level 14 where they said if it goes 180 meters of striking about 20 meters of vertical elevation which I think really opens things up here that you could have that kind of size in terms of the deposition of gold over such a big area. I always imagined that, you know, we had this sediment that caused gold to sort of puke out in a way, but it wouldn't be that extensive. But it sounds to me like it's much more extensive. They have these forest structures that go two kilometers along and below them all is this sediment which is causing the gold to spill out. So, you know, fingers crossed, it could be a very major discovery. Some people are even imagining it could be the discovery of the century for them to say, "Well, it's already got the biggest coal boulders ever, ever. I mean, it is very, very unusual."
So, and the sort of rumblings we get from the mine site is that they keep, you know, blasting and finding large amounts of gold. So, it's a very interesting thing. There's lots of great information. I would recommend that people go to the website, for example, ceo.ca. There's some wonderful posters there who do a great, great job of trying to keep people informed as to the progress down there. So, that's been very exciting for us. I think I first mentioned it might've been 20 cents. It went to $1.15 down at 80 cents now, but it sure looks like it could carry the day for us.
Craig: Eric,that was a great comprehensive update. You know, I don't know a lot of geological stuff and it's great to hear it. The one thing I'm pretty sure though, is puke out a geologic term?
Eric: I don't know, but I hope they keep puking. I mean, I couldn't believe the gold that those guys found in those nuggets. That was incredible.
Craig: Pretty remarkable stuff.
Eric: There's all these pictures on the website of these, you know, huge gobs of gold. And like it's very...and this is an incredibly unusual discovery, which I think that first boulder that had 2,600 ounces in it made the whole statement. And who's to say, you know, we got eight kilometers of strike for drill on here. So, it could be very interesting.
Eric Sprott on gold’s great week - Weekly Wrap-Up (October 12, 2018)
I also visited the Beta Hunt Mine that's owned by RNC Minerals, that's the one that where they came out and said they think they'll find 30,000 to 35,000 ounces in the Father's Day vein, they've subsequently come out and says it looks like this thing extends quite a bit further. But there's no tangible results going along the sedimentary structure that they have found more yet, not that they've drilled it by the way, so we can't expect anything yet.
But I just... If this comes together that there is a lot of structure to be mined down there, they mean they have eight kilometers of structure, the sedimentary zone goes through the whole eight kilometers. We don't know how well it won't be endowed, I mean, it's not going to be like the Father's Day vein, because that would just be impossible that something would be that great, it was unheard of the amount of ounces they pulled out of there in such a short time. So, we'll have to stand by and see if they can do a little drilling, and then prove that this thing will have multi-ounce potential along the strike of that paretic [SP] zone, but I think there's reasons to be optimistic on that front.
Eric Sprott on the state of the markets - Weekly Wrap-Up ( October 26,2018)
Craig: And Eric, just quickly here as we wrap up, one of the companies that we've spoken about in the last couple weeks is this RNC or Royal Nickel, and these massive gold nuggets, people have probably seen the stories in the news about the largest gold nuggets ever on earth. They had some earnings there and some statements they put out this week, and I know you kind of want to touch on that too.
Eric: Sure. Well, they brought out a news release, which was I think poorly worded, and I still I'm not sure exactly what it said. And believe me, I've read it 20 times where they said the grandfather's vein produced, whatever, 27,000 to 30,000 ounces, and the extra 540 meters beyond the first 10 meters will produce 35,000. They didn't say an additional 35,000, just 35,000. So anonymous, not which one they meant. You know, they meant the total of 35,000 between the 2 things in which case would be a big disappointment. Did they mean an extra 35,000, which I don't think they really meant to be honest because, you know, how would they know it would be that number?
Eric: But here's the interesting thing that everyone should give some thought to. A cubic meter of gold weighs 19 tons; therefore, a ton of gold is one-twentieth...one-nineteenth of a cubic meter. That's a meter by a meter by about 3 inches, 3 inches. Now, if you look at that grandfather vein and maybe it's two feet wide, it's not all gold, but you can see what a small, little...and they found a ton. What a small little area, you can find a ton of gold in. And the key question with RNC is, have we unleashed a new depositional model for gold? And there's some thought that it is a new depositional model, it hasn't been proven, but I can tell you that there's probably four or five different places on that property where they have seen that kind of manifestation before at different levels and in different structures, and, of course, they got four structures that I think on average each go like four kilometers.
So we got a lot of opportunity to see whether we're going to have a new theory. I'm about to read a paper on the weekend which will be a heavy duty geological paper which you won't understand. I'll try. I'll try to summarize it for the layman as I hope it summarized for me the layman, just about how that gold did manifest itself down there. So hopefully I might have more to report next week. But I find it intriguing to study what's going on down there and I'm trying to make sure that if it's going to be different, if it's going to be different, that one takes advantage of it. Because if it works it's a multi-bagger, if it doesn't work, maybe you lose 50% of your money. But the multi-bagger is a lot better, you know, if you get enough of them you don't mind losing 50%. So we'll see where it goes. I tend to be...you know, I'm getting into the believer camp so we'll see where it all takes us.
Disclosure: I am/we are long RNKLF.