Global Resources Investment Tst PLC Release of Align research note on GRIT Plc
January 05 2017 - 2:55AM
RNS Non-Regulatory
TIDMGRIT
Global Resources Investment Tst PLC
05 January 2017
Global Resources Investment Trust
- Min Price Target 20p
27(th) 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 9.89p/1.66p
high/low
Listing Full List
Shares
in issue* 41,970,012
Market GBP2.83m
Cap*
Sector Investment
12 month share price
chart
Analyst details
Mark Parfitt
markparfitt@alignresearch.co.uk
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 9.89p (Sept
range '16) Market cap. GBP2.83m
1.66p (Mar NAV.Est.
'16) 01/01/17 GBP8.34m
------------- ------------ --------------- -----------
Discount
NAV/ share* 20.95p 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
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