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RNC Minerals (TSX:RNX) – The New RNC: Generating Alpha from Beta Hunt

RNC Minerals (TSX:RNX) has transformed itself into a profitable Australian gold producer, that we believe has yet to be recognized by the market. RNC is ramping up production at its 100% owned Beta Hunt and Higginsville mines in Western Australia and we expect the company to demonstrate improved production and costs over the course of 2020. In our view, the transition to profitability has not yet been recognized by the market and we believe that the combination of improving quarterly results and technical updates (Beta Hunt maiden reserves, Higginsville resource update and 2020 guidance) should provide RNC with the momentum to re-rate to our new C$0.90/sh fair value estimate (was C$1.00/sh).

Wallbridge Mining Company Limited (TSX: WM) – Funding Secured for 2020 and Beyond

Wallbridge Mining announced a C$42.5M financing which we believe will help the company move its 100% owned Fenelon gold project (Quebec) forward towards production and FCF generation. We reiterate our view that Wallbridge has the potential to become a +60k oz Au and +100k oz Au producer in three and five years, respectively. Wallbridge represents a unique opportunity for investors to gain increased leverage to significant exploration which we believe could result in a +$500M ore body.

Atico Mining Corp. (TSXV:ATY) – Delayed Shipment Impacts Q3 Financials; Strong Q4 Expected

Atico Mining announced Q3 financial results following record quarterly production. However, the strong operating results were not yet reflected in the financials, as a concentrate shipment was delayed until Q4. With two shipments now expected in Q4, we expect a very strong financial performance to be reflected in Q4. Atico remains a low-cost copper-gold producer capable of generating FCF with significant exploration upside at El Roble (Colombia) and La Plata (Ecuador).

One of Four Waiver’s Rescinded – U Price Poised to Move Higher – Uranium Update

This could be the catalyst for the expected uranium rally. After waivers for foreign companies working on Iranian nuclear were extended at the end of October, one of the four waivers were rescinded yesterday, because of the resumption of enrichment at the Fordow facility. Sanctions will come into affect for companies working at this facility on December 15th. It is estimated that the European, Chinese and Russian companies currently engaged in Iran’s nuclear program make up about ~20% of nuclear fuel supply. While companies that discontinue working at this facility would not be subject to sanctions, the potential exists for some impact on the nuclear fuel supply chain which we expect to push prices higher. This is only one of the potential near-term catalysts that we see pushing the uranium price higher in the near-term, as noted in our recent uranium update, in September. While we believe that the implementation of sanctions is likely to push the uranium price higher in the short-term, we continue to have a bullish outlook on the uranium sector and are expecting the tightening long-term supply-demand fundamentals to result in a significant uranium price increase.

Rockcliff Metals Corp. (CSE: RCLF) – Rail Deposit Growing at Depth

Rockcliff Metals Corp. released drill assay results from five holes at its 100% owned Rail deposit located in Snow Lake, Manitoba and announced it will be increasing its drill program at Rail to 15,000m (previously 10,000m). We expect this news will bode well for the company as Rockcliff looks to move forward with a development decision at one of its Snow Lake projects (Q4/20). We believe there is significant potential for Rockcliff to extend known mineralized zones through its ongoing 100,000m drill program, as well as strong potential to make new discoveries at its Tower, Rail and Talbot deposits in addition to a suite of green field exploration assets.

Mako Mining Corporation (TSXV:MKO) – San Albino Could Be Much Bigger than Previously Thought

Mako Mining provided a positive corporate update including a drill hole (assays pending) that has the potential to materially expand the San Albino pit. Additionally, the company announced a reduction in its liabilities at its La Trinidad operations, which are in the process of being wound down. In our view, we expect the stock to progressively re-rate as it adds ounces with the drill bit and marches towards production in H2/20.

RNC Minerals (TSX:RNX) – Solid Q3, Likely Precedes a Better Q4

RNC Minerals announced positive FQ3 financial results, which highlight strong QoQ production, cost reduction, and exploration results. We believe the company is positioned to meet and potentially exceed H2 2019E guidance and is well positioned to become a +100koz/year producer next year. We maintain our fair value estimate of C$1.00/sh and expect continued QoQ operating improvements and exploration updates to drive a re-rating towards our fair value estimate.

Brixton Metals (TSXV: BBB) – Time to Drink Some Oban

Yesterday, Brixton released assays results from two of their thirteen-hole phase two exploration program (totaling 7,213m) at its wholly owned Thorn Project (Golden Triangle of B.C.). The program was following-up results from hole THN19-150, while also targeting other high potential areas at Thorn. We believe Brixton could be on the verge of a potential porphyry discovery that may cause the stock to react much like GT Gold did in 2017. We are encouraged by the presence of multiple mineralized sulphide-bearing zones, the overall size of the target and anxiously await results from TH19-163 which appears to hit the heart of the IP target.

Fiore Gold Ltd. (TSXV:F) – “Come on Baby Light My Fiore”

Fiore Gold is a gold producer that owns 100% of the producing Pan Gold Mine in Nevada, as well as the nearby Gold Rock development project. We continue to believe Fiore is well positioned to deliver +80koz/year by 2022 driven by steady production at Pan alongside organic growth from Gold Rock (PEA by year-end).

SolGold PLC (TSX: SOLG, LSE: SOLG) – Improved Recoveries Could be Game Changing

Yesterday, SolGold released results from metallurgical test work done at its Alpala project in northern Ecuador showing significantly improved recoveries for Cu, Au, Ag and an improved Cu concentrate grade. SolGold also stated that it plans to move forward with a pilot plant operation in 2020 to investigate a molybdenum-rhenium circuit for its copper concentrate as well as pyrite and magnetite recovery processes that will reduce tailings. We view the improved recovery results as a validation of the recoveries we used in our model (which were higher than the PEA) and believe that the additional recovery circuits could add significant value at Alpala should the metallurgy be proven feasible.