The Gold Report
Notable Quotes
"ICG has closed a CA$2.5M flow-through placement." (12/24/15) Integra Gold Corp. - Thibaut Lepouttre, Caesars Report More >
"The exploration upside at MAG's Juanicipio project is substantial." (12/23/15) MAG Silver Corp. - Gwen Preston, Resource Maven More >
"AKG's management continues to deliver on its development milestones." (12/22/15) Asanko Gold Inc. - Nana Sangmuah, Clarus Securities More >
"We are initiating coverage on KDX with a Buy rating." (12/21/15) Klondex Mines Ltd. - Don Blyth, Paradigm Capital More >
"VIT's Eagle is a shovel-ready, fully permitted, prefinanced gold project." (12/17/15) Victoria Gold Corp. - Tom Hayes, Edison Investment Research More >
PNP: A Liquid Way to Play Junior Resource Stocks
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RYAN ROEBUCK, M Partners
(11/22/2010)
"Pinetree Capital is an advantageous way of playing the junior resource sector and gaining exposure to commodities without facing some of the liquidity or headline risks tied to one specific company or asset. Investors could benefit from gaining sector exposure, as well as purchasing shares of PNP at a 31.9% discount to our estimated current NAV. . .At the end of Q310, the company reported a NAV of $3.06/share and reported sector exposures of 43.6%, 17.6%, 18.0%, 9.9%, 6.6% and 4.4% in the precious metals, base metals, uranium & coal, oil & gas, potash, lithium and rare earth sectors, respectively. The company recently announced a stock buyback to purchase up to 5M shares between September 1, 2010 and August 31, 2011. This buyback is an immediately accretive course of action to the company and shareholders. Additionally, the NCIB should provide a backstop for share price as management continues to opportunistically purchase its stock at a discount to NAV. As of the end of Q310, there were no purchases made in the NCIB. Investors could benefit from owning Pinetree stock, as we believe it is a strong proxy for the junior resource sector; it currently has 420 holdings in its portfolio and mostly related to the resource or junior resource sector. We are estimating that the current NAVPS of PNP shares are $3.60 representing a 46.9% return to Friday's closing share price." |
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Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.
More Experts
"We expect PGLC's Relief Canyon site to be meaningfully advanced in 2016." (12/16/15) Pershing Gold Corp. - Heiko Ihle, Rodman & Renshaw More >
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"THO pays a good dividend and produces at the lowest quartile costs." (12/9/15) Tahoe Resources Inc. - Gwen Preston, Resource Maven More >