ASA Gold and Precious Metals Ltd C.ASA

Primary Symbol: ASA

ASA Gold and Precious Metals Limited is a non-diversified, closed-end investment company. The Company's investment objective is long-term capital appreciation primarily through investing in companies engaged in the exploration for, development of projects or mining of precious metals and minerals. The Company invests approximately 80% of its total assets in common shares or securities convertible into common shares of companies engaged, directly or indirectly, in the exploration, mining or processing of gold, silver, platinum, diamonds or other precious minerals; held as bullion or other direct forms of gold, silver, platinum or other precious minerals; in instruments representing interests in gold, silver, platinum or other precious minerals, and/or in securities of investment companies, including exchange traded funds, or other securities. The Company’s investment adviser is Merk Investments LLC.

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ASA Gold and Precious Metals Ltd > Contacted Investor Relations

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Post by RockMaschineon Jan 22, 2019 7:05pm

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Post# 29267538

Contacted Investor Relations

And asked about the recent deals trying to get an idea of the potential value. I was told costs to the supplier are about $1.15-2.50 per gram of input to Valens! That is some amazing margin right there. I was also forwarded the AltaCorp Capital coverage document which details the great potential.

Regarding margins, as quoted from the piece.

EBITDA margins are amongst the highest in the sector: We forecast that Valens will generate one of the most attractive EBITDA margin profiles we have seen in the sector, with margins of 47% in F2019, 58% in F2020, 52% by F2021E. In addition, the Company’s business model requires relatively low capital investment in comparison those of most vertically integrated cannabis producers, allowing them to generate meaningful free cash flows by F2020.