SHAREHOLDER REPORT September 27, 2022
Report to Shareholders:
BRASCAN PIVOTS TO BATTERY METALS AND OTHER CRITICAL MINERALS
Brascan is moving forward. Management efforts should be reflected in the market as concrete actions improve company value over the next 6-12 months. Today, BRAS shares are priced at less than cash breakup value due to the price of gold, market uncertainty and recessionary pressures. In my opinion, your company is tremendously undervalued. Efforts to enhance shareholder value are as follows: - BRAS has carried out a $250,000 exploration program this summer on the Alegre Gold property in Brazil. A report is being written and your company will issue a news release in October summarizing the exploration results to discover a potential multi million ounce gold resource. We believe drilling will follow when drill targets are outlined.
- BRAS is currently carrying out a substantial exploration program on the Blackcat Gold property in Newfoundland. Crews are on the property sampling and prospecting for ideal targets to conduct a major exploration program.
- BRAS recently announced a 25% equity acquisition of North Atlantic Aggregates Inc,(NAAI) that has a massive land position in Newfoundland of 600 square kilometres highly prospective for aggregates. The property is potentially viable for a concrete stone super quarry like the Glensanda super quarry in Scotland. Aggregates are a $375 billion dollar annual business. Also, NAAI is exploring for critical minerals such as copper, lithium, REE, titanium, scandium, and vanadium, all essential to the green economy, particularly to meet the voracious demand for battery metals in the EV market.
- BRAS has started a $350,000 exploration program on a shoreline stone concrete target in Southern Newfoundland and a shoreline target in Baie Verte, Newfoundland for titanium, vanadium and scandium, all considered critical by Canada and the United States. The exploration programs include a significant drilling of both targets. Sampling and drill results should be available in October or November.
Goldman Sachs predicts, by 2030, copper demand alone will grow 600% to 5.4mn tonnes. Moreover, the global battery metals market size is projected to reach $20.5 billion in 2027, doubling in size since 2019.
- Brascan’s board of directors is considering a name change to Brascan Battery Metals Inc to better reflect the mandate to change to explore, discover and develop battery metals and other critical minerals Our focus is Canada but we will pursue opportunities in the Americas as represented by Lithium Americas (TSE: LAC), trading today at $35/share with a market capitalization of $5 billion.
Some critics say BRAS is spread out too thinly. Management disagrees. The vision, mission and plan is to build a cash flow business and also explore and develop properties with huge blue sky potential. BRAS intends to become self reliant to avoid the excessive dilution effect of running to the market to finance in a bear market.
While ambitious, once BRAS has self sustaining cash flow, hopefully in 2023, BRAS will be able to develop big opportunities such as building a concrete super quarry in Newfoundland to sell aggregates in bulk to nearby world markets, such as the United States and Canada.
BRAS is following in the footsteps of the original Brascan that started in Brazil and became one of the largest conglomerates in the 80s and 90s(Google search “The Brass Ring”).
We aim high because we might make it. Certainly, our market capitalization of $500,000, with BRAS trading at $ .02 per share, doesn’t reflect prospective and real value. Importantly, BRAS has a runway to success.
I ask shareholders and stakeholders to be patient as the management team executes the vision, mission and plan to build a very successful company.
Feel free to contact me if you have any questions or concerns.
All the best,
Balbir Johal
CEO & Director
Brascan Gold Inc
“focused on Brazil and Canada” |