New investor presentation at GCM websiteThis looks very professional, it sums up the GCM story very well after the merger going forward. A few key points stood out to me:
1) Just how high a dividend % that GCM pays out compared to larger peers. It is on par with Newmont and beats Agnico Eagle, Kirkland and Wheaton. If the share price and free cash flow continues to increase and the dividend % stays stable, this will become an ever more attractive stock to hold in your portfolio.
2) Just how underexplored the Segovia operations are. Only 10% of the known veins are currently being mined. If the other veins are similar high-grade in nature, Segovia could continue pumping out the gold for many decades to come.
3) Just how diversified GCM has now become. It is no longer a one trick pony located in Colombia. With Gold X in tow, it is now "Welcome to elephant country" over in Guyana. Throw in the sizable stakes in Aris and Denarius, there are different fingers in varying pots right now which can only help. Having this mini-portfolio sorta reminds me of Strategic Metals up in the Yukon with their investment portfolio. And, if the strategic interests in the companies ever become a more compelling story they can always be acquired ala Gold X.
4) The outstanding shares are still under 100 million, which is a very clean share structure, not bloated whatsoever. The debt is well under control and will be off the Balance Sheet in a few years. This is a growing, profitable company and we just need to get the market perception of GCM upgraded, which is why I believe a re-branding of some sort may be in the cards in the future. If the word "Colombia" in the name scares investors away, simply tweak the name to better match the story and voila, you will attract more investors.
Anyways, look for the Gold X shares to be off the board and converted in your portfolios to GCM shares by next weekend. Happy investing all and as always perform your own due diligence before taking any positions in a company.
PS This is the direction I want to see happening in my portfolio: juniors being bought out by seniors or mid-tiers that pay a dividend. Same thing is about to happen with my WRN shares and this is a sound way to build a portfolio.