August 19, 2014 By Thom Calandra (Edit)
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ABITIBI ROYALTIES’ UBER-LAD TAKES OVER [Take 1]
I like the new guy on the Abitibi Belt’s Airbnb and Uber references. Ian Ball and I had a similar conversation. I think Mr. Ball is sincere when he expresses his vision for the tiny Quebec claims staker. Then again, he is just 32 years old.
Ian is the lad running Abitibi Royalties (TSX: V.RZZ,Stock Forum), which is waging legal battle with gold miners Agnico-Eagle (TSX: AEM, Stock Forum) and Yamana Gold (TSX: YRI, Stock Forum) over a large resource of gold on mineralized property — adjacent to Canada's largest gold mine at Malartice. Quebec.
Ian Ball analogized the gold biz with Airbnb and Uber — two start-ups that “break the rules.”
“In hotels, you build hotels. Until Airbnb does it with no real estate at all. Uber and the taxi business? No great capital expenditures — no automobiles!.”
In our TCR conversation, Mr. Ball showed he is at an age where role breakers — Apple Computer, Google, MarketWatch.com — become big winners regularly. What makes the former McEwen Mining executive compelling is not his cyber-yak. Rather, Ian Ball seems to hit the target on an issue that is DEMOLISHING the business of metals prospectors and producers.
His equation for building a great gold company is building a great gold stock. As in, one that does not get diluted, and diluted, and diluted.
“Get the stock price higher and higher and higher, and work with that,” he says. Founder Glenn Mullan and the Golden Valley Mines team have delivered a decent start with RZZ shares. Fair value in our TCR view of RZZ’s holdings, just the joint-venture ones at CHL Malartic, is about twice the currrent $4 CD price.Abitibi Royalties is RZZ in Canada. Its parent, Golden Valley Mines, is GZZ.
– See more Thom Calandra atwww.thomcalandra.com. Subscribe to learn more about Abitibi Royalties.
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