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).