Impact: Positive
RNC Minerals announced it has restructured the royalties on its Higginsville project, reducing them from what was effectively +20% NSR to ~5% NSR at current gold prices and production levels. The net result is significantly better long-term economics for Higginsville, which is likely to result in a change to the mine plan and increased exploration at the project. We believe this is the first in a series of catalysts that should rerate the stock towards our fair value estimate of C$0.90/sh.
