Mining Expert Jay Taylor of Hard Money Advisors Initiates Coverage on Fancamp Exploration Ltd.
New York, NY (PRWEB) March 03, 2014 -- Mining analyst Jay Taylor of Hard Money Advisors released an advisory to his paid subscriber base on the merits of establishing a long position in Fancamp Exploration Ltd. and recommended they add Fancamp to their watch list. Mr. Taylor has a business MBA in Finance & Investment, in-depth accredited studies in geology, has decades of mining sector analysis under his belt, and is known for being reserved in his advice, thus investors should pay attention when he does decide a company is poised to appreciate in value and worth adding to watch list for superior return potential; Fancamp Exploration Ltd. is now in that category.
Full copy of Mr. Taylor's advisory along with chart and additional insight may be viewed at http://sectornewswire.com/FNCJayTaylor-2014-02-28.pdf online.
Excerpts from Jay Taylor's advisory on Fancamp Exploration Ltd.:
"The company holds assets that are of significantly greater value than the market cap of this company. For example, its equity holdings of three companies alone in which it owns shares are worth more than its market cap as outlined above. But that’s not all. In addition to that, the company holds property and royalty interests in many projects, the most advanced of which it holds is a 10% equity interest in Champion Iron Mines Ltd. plus a 1.5% NSR."
"For those of you who may have viewed Altius as too expensive for your taste when I recommended it a few months ago at a price 35% lower than now, FNC appears to offer a penny play that may be as undervalued or even more so than Altius. I consider FNC to be a “baby Altius.” As such, it is worth watching its progress."
"The current equity holdings alone are worth approximately $17.5 million, compared to the company’s recent market cap of around $14 million. As exploration and development continues, more value may well be added going forward. Suffice it to say, based on equity holdings alone in these three companies, with zero value given for future cash flows from royalties or the many other properties the company owns that it is in the process of farming out to other firms, this stock is currently undervalued."
Based on: CHAMPION IRON MINES LIMITED (15.025 million @ $0.35); ARGEX TITANIUM INC (6 million @$0.82);LAMELEE IRON ORE LTD (43 million @ $0.17)
"THE BOTTOM LINE – This stock on the basis of its holdings in Champion Iron Mines, Argex Titanium, and Lamelee Iron Ore alone, is undervalued by approximately 15%. But if you allow value for future cash flows from royalties and the many other holdings this company has in eastern Canada, even in a continuing lackluster market like the current one, a case could be easily made for a double in this stock from its current price. Longer term as production nears and risk is reduced, it is not unrealistic to anticipate much higher valuations. Perhaps upwards to a four-fold increase over current values could be enjoyed by shareholders as the market begins to discount very sizeable future royalty cash flows. My only reservation in not adding this stock to my list now is my relatively bearish macroeconomic view on the global economy. That is why I favor gold and silver shares over base metal and industrial metal companies. If you disagree with that outlook or if you think my view is wrong, you may want to consider adding these undervalued shares into your portfolio simply as portfolio insurance through diversification. As for now, I will keep a watchful eye on this company, which under less stressful times would without doubt make it on my list as a buy."
Full copy of Mr. Taylor's advisory along with chart and additional insight may be viewed at http://sectornewswire.com/FNCJayTaylor-2014-02-28.pdf online.
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned.
Sean West, Madison Avenue Research, +1 (866) 620-9945, [email protected]
Share this article