Lockdown in the Third World
Revelo Resources, etc.
Some people believe that lockdowns around the world are a grand conspiracy. In my view, the reality is simpler: our governments and experts are utterly incompetent. They had no courage or independent thinking. With the exceptions of Japan, Sweden, Trump, and a few others, the rest of the world copied-and-pasted what China had started. This one-size-fits-all policy is particularly disastrous for the Third World, in which billions of people live from hand to mouth. Linked on the following image is a discussion I had on this issue with David Forsyth:
- Revelo Resources (RVL; C$0.21) has signed a non-binding offer to merge with Austral Gold. Assuming the merger goes ahead, RVL has a 40% arbitrage upside.
- O3 Mining (OIII; C$2.75): O3 has gone up over the last few days. They recently released an updated PEA for the Marban project. Using US$1,450 per ounce as the gold price, IRR is 25%, and NPV (5%) is $423 million. At the spot price, NPV based on my calculations will be $750 million. I continue to see O3 as deeply undervalued.
- Perseus Mining (ASX.PRU; A$1.45): The acquisition of Exore (about which I mentioned here) closes today. While I bought Exore for an arbitrage upside, PRU, in my view, offers a good upside. With most of the capital for the Yaoure project committed, PRU should be generating good cash-flow in the near future. PRU also trades in Canada.
Disclaimer: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment, or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. The sole purpose of these musings is to show my thinking process when analyzing a stock, not to provide any recommendation. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.