Topic: How To Invest

Hi Pat: I’m wondering what your take is on Royal Nickel.

Article Excerpt

Royal Nickel, $0.60, symbol RNX on Toronto (Shares outstanding: 90.1 million; Market cap: $54.1 million; www.royalnickel.com), is focused on bringing its 100%-owned Dumont nickel project in Quebec into production. The company has identified a deposit that could contain as much as 18.8 billion pounds of nickel. It has completed a positive prefeasibility study that envisions a mine with a 19-year life producing as much as 108 million pounds of nickel per year. Royal Nickel could then produce 63 million pounds per year for a further 12 years by processing a low-grade stockpile of ore. Royal Nickel still needs to successfully complete a full feasibility study to determine if a mine can be built and operated at a profit. It also needs to find a partner to help finance the $1.1-billion initial cost of developing the project. The size of the Dumont deposit, its location in mining-friendly Quebec and its experienced management and board members (mainly from the former Inco and Falconbridge) give Royal…