GREY:AXXDF - Post by User
Comment by
greenandgoldon May 16, 2011 2:44pm
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Post# 18583255
RE: BNN just now
RE: BNN just nowVan Eeden's exposure to ADV is mostly through his holdings in Altius, the largest position in his portfolio. In my opinion, that's the safe play: holding Altius (which owns more than 1/3 of ADV, fully diluted) is the safest way to hold ADV shares. If ADV goes into production then Altius' stock price will do very, very well. If iron ore prices tank and ADV doesn't achieve production then Altius' stock price will take a hit, but its market cap is backed up by $170 million in cash, Royal Gold shares, the Voisey's Bay royalty and other assets.
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There's always a chance iron ore prices crash in the next couple of years and derail even economical iron ore projects like ADV.