Last checked at 
5 Jan 2017 07:55
Global Resources Investment Trust - Min Price Target 20p
|
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unique opportunity to purchase both a world class Bauxite prospect and Siberian Gold & Iron Ore mining opportunity for effective negative value. |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
At the current price of 6.75p, shares in Global Resources Investment Trust offer a rare opportunity to purchase large stakes in one of the largest Bauxite reserves in the world and a highly prospective Russian gold miner for, in effect, negative value. As the stakes in Anglo African Minerals (AAM) and Siberian Goldfields move towards anticipated liquidity events during 2017 we expect a sharp re-rating in the market's current discount to NAV.
· A resumption in risk appetite to fund attractive mining prospects With the investor sentiment cycle in commodity stocks moving resolutely into the bull market phase during 2016, viable and highly prospective mining projects are again attracting capital and JV structures. GRIT holds large stakes in two such prospects - AAM & Siberian Goldfields.
· Current quoted portfolio value alone (net of liabilities) in excess of the present stock price The residual portfolio (ex. AAM & Siberian Goldfields) of GRIT holdings plus net cash and minus the repayment of the entire remaining CULS is in itself in excess of the current stock price of 6.75p - being equivalent to 8.4p alone.
· Siberian Goldfields and Anglo African Minerals stakes "in for free" With a large minority stake in AAM and preferred capital structure positioning in Siberian Goldfields with the option to convert into equity in this case on a listing, the stock price offers to investors the opportunity to position for liquidity events in these two companies for free.
Source: Align Research * NAV as at 27 December 2016
CLICK HERE TO ACCESS THE FULL REPORT. | |||||||||||||||||||||||||||||||||||||||||||||||||||||