Markets are not always perfectHi,
I am new to Bullboards as a writer. I thought I would start with sharing my views on what I see as an excellent opportunity since I feel the market has forgotten that there are two companies at the Ruddock property which is currently so hot.
SLK with 38 million shares fd, mcap at 1,18 is 45 million.
DSR with 33,5 million shares fd, mcap at 0,38 is 12,8 million.
SLK can earn 70% by spending more than 5 million cad including stocks.
If we play with the thought that neither company had anything else valuable (se below) this would conclude that SLK should be valued at 70/30=2,33 times more than DSR excluding the 5 million. For simlicity I add those 5 million to the mcap of SLK which reaches 50 million.
50 divided by 2,33 gives a value of DSR of 21,4 million cad or 0,635 cad.
In my mind this proves investors have forgotten about DSR.
What about the rest of the two companies. Let us first say, according to the principle of discounting cashflows in the future all other projects have a lower valuation relative since they will be focused on years later.
What I have seen from SLK´s pressreleases they have some other interesting projects but they need much further drilling.
Since DSR have a much better PR through its excellent webpage this is easier. This is some of the things I found:
- Royalties from Northgate at 10 mcad over 5 years, almost all DSR´s mcap, from a project sold to Northgate. This however will only happen if Northgate put the property into production. I believe they will. They bought it when copper was almost half the current price. Also they need the ore, no matter what happens at Kemess North.
- Another large copper area. This is the company´s nr one project.
- More zink
- Gold partnership with Anaconda Gold like the one with Selkirk.
- Iron mineralization
The list goes on, simply a lot of projects (I consider them commodity options)
I bought Selkirk when it was recommended at a newsletter alert but have now switched to DSR for my Ruddock exposure. Soner or later I believe DSR will reach radar level.
Finally, I am sure SLK will be an excellent stock to hold, I simply feel there is a slight marketimperfection currently. I also recommend that anyone interested i Selkirk read about Ruddock at Doublestars web page since it is much better described there.
https://www.doublestar.net/