Musings on Investing

Sprott Vancouver Natural Resource Symposium

Alexandria Minerals

The next Sprott Vancouver Natural Resource Symposium will be held from 29th July to 2nd August 2019. This symposium has a very special place in my heart, for I learned the basics of junior mining investing from a series of speeches that Rick Rule gave in 2006. Apart from Mr. Rule (who I am a big fan of), speakers at the symposium include Who’s Who of the mining space.

Get $100 off the ticket price using the discount code ‘GENL19’ here.

Here is my discussion with Scott Tibballs, from the last year’s symposium:

On investments…

Alexandria Minerals (AZX; C$0.025) is being acquired by what will become O3 Mining. Osisko Mining is vending two of its projects, Marban Block and Garrison, along with some securities, into O3 in exchange for shares worth $100 million, at an implied price of C$0.04 of AZX. The two projects that Osisko is vending were acquired through the mergers that Osisko did with Northern Gold and NioGold a few years back. Osisko is getting paid the book value of the projects and securities, which to me, is completely fair. Based on my valuation, there is a further 50% to 100% upside. The proposed CEO, Jose Vizquerra-Benavides, is a Director on the board of Osisko, and someone I hold in high regard.

For now, there is a 60% arbitrage upside in owning AZX. I would sit at a limit buy-order of C$0.025, which will very likely get filled. Add to that is a further 50% to 100% upside based on my valuation. In my view, such investments are ideal low-risk, high-reward investments.

On other matters…

My friends at Incrementum have recently released the latest “In Gold We Trust” report. This report is one of the most extensive pieces of research on gold. Use this link to download it for free.

Finally, the next Capitalism & Morality seminar will be held on 3rd August, immediately after the end of Sprott Vancouver Natural Resource Symposium. If you register for Sprott’s, please ask me for a 10% discount code to register for Capitalism & Morality.

Warm regards,

Jayant Bhandari

Associate: Rajni Bala

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