Royal Nickel Gets Vote of Confidence From Haywood

Jul. 05, 2011 08:01AM PST

Financial Post reports that Haywood Securities analyst Stefan Ioannou is confident Royal Nickel (CVE:RNX,TSE:RNX,PINK:RNKLF,FRA:5RN) will be a reliable source of nickel.

Financial Post reports that Haywood Securities analyst Stefan Ioannou is confident Royal Nickel (TSXV:RNX,TSX:RNX,PINK:RNKLF,FRA:5RN) will be a reliable source of nickel.

The market news is quoted as saying,

He wrote that Dumont is a low-grade deposit, with a “mineable” nickel resource grade of just 0.27%. As such, it will be highly leveraged to the nickel price — Mr. Ioannou calculated that each US$1.00-per-pound increase in the price adds about US$1.20 per share to his discounted net asset value (and implied target price) for Royal Nickel. His long-term nickel price assumption is US$9.00 a pound, compared to the current level of roughly US$10.50.

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