Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

GLOBAL RESOURCES INVESTMENT TRUST PLC ORD GBP0.01 RNS Release

Release of Align research note on GRIT Plc

RNS Number : 4120T
Global Resources Investment Tst PLC
05 January 2017
 


 

Global Resources Investment Trust - Min Price Target 20p

 



27th December 2016

 

 


 

Unique opportunity to purchase both a world class Bauxite prospect and Siberian Gold & Iron Ore mining opportunity for effective negative value.




Key data

EPIC

GRIT

Share price

6.75p

52 week high/low

9.89p/1.66p

Listing

Full List

Shares in issue*

41,970,012

Market Cap*

£2.83m

Sector

          Investment

 

12 month share price chart

 


Analyst details

Mark Parfitt

[email protected]


IMPORTANT: GRIT is a research client of Align Research. Align Research holds an interest in the shares of GRIT. A Director of Align Research holds an interest in GRIT. For full disclaimer information please refer to the last page of this document.

* Adjusted for issue of 2m new shares

 


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.

 

Market price

6.75p

Issued capital

41,970,012

12-month range

9.89p (Sept '16)

Market cap.

£2.83m


1.66p (Mar '16)

NAV.Est. 01/01/17

£8.34m

NAV/ share*

20.95p

Discount to NAV

69%

Source: Align Research

* NAV as at 27 December 2016

 

CLICK HERE TO ACCESS THE FULL REPORT.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
NRAOKPDPOBKKNDK



GLOBAL RESOURCES INVESTMENT TRUST PLC ORD GBP0.01 Timeline

Newswire
December 05 2014

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.