Global Resources Investment Tst PLC Release of Align research note on GRIT Plc

TIDMGRIT

Global Resources Investment Tst PLC

05 January 2017

 
 Global Resources Investment Trust 
  - Min Price Target 20p 
                                                                  27(th) December 
                                                                             2016 
 
 Unique opportunity to purchase both 
  a world class Bauxite prospect and 
  Siberian Gold & Iron Ore mining opportunity 
  for effective negative value.                                                       Key data 
                                                                  EPIC                                       GRIT 
                                                                  Share price                               6.75p 
                                                                  52 week                             9.89p/1.66p 
                                                                   high/low 
                                                                  Listing                               Full List 
                                                                  Shares 
                                                                   in issue*                           41,970,012 
                                                                  Market                                 GBP2.83m 
                                                                   Cap* 
                                                                  Sector                              Investment 
 
                                                                   12 month share price 
                                                                   chart 
 
                                                                  Analyst details 
                                                                  Mark Parfitt 
                                                                   [e-mail] 
 
                                                                  IMPORTANT: GRIT 
                                                                   is a research client 
                                                                   of Align Research. 
                                                                   Align Research holds 
                                                                   an interest in the 
                                                                   shares of GRIT. 
                                                                   A Director of Align 
                                                                   Research holds an 
                                                                   interest in GRIT. 
                                                                   For full disclaimer 
                                                                   information please 
                                                                   refer to the last 
                                                                   page of this document. 
                                                                   * Adjusted for issue 
                                                                   of 2m new shares 
============================================================= 
 
 At the current price of 6.75p, shares 
  in Global Resources Investment Trust 
  offer a rare opportunity to purchase 
  large stakes in one of the largest 
  Bauxite reserves in the world and 
  a highly prospective Russian gold 
  miner for, in effect, negative value. 
  As the stakes in Anglo African Minerals 
  (AAM) and Siberian Goldfields move 
  towards anticipated liquidity events 
  during 2017 we expect a sharp re-rating 
  in the market's current discount 
  to NAV. 
 
   *    A resumption in risk appetite to fund attractive 
        mining prospects 
 
 
  With the investor sentiment cycle 
  in commodity stocks moving resolutely 
  into the bull market phase during 
  2016, viable and highly prospective 
  mining projects are again attracting 
  capital and JV structures. GRIT holds 
  large stakes in two such prospects 
  - AAM & Siberian Goldfields. 
 
   *    Current quoted portfolio value alone (net of 
        liabilities) in excess of the present stock price 
 
 
  The residual portfolio (ex. AAM & 
  Siberian Goldfields) of GRIT holdings 
  plus net cash and minus the repayment 
  of the entire remaining CULS is in 
  itself in excess of the current stock 
  price of 6.75p - being equivalent 
  to 8.4p alone. 
 
   *    Siberian Goldfields and Anglo African Minerals stakes 
        "in for free" 
 
 
  With a large minority stake in AAM 
  and preferred capital structure positioning 
  in Siberian Goldfields with the option 
  to convert into equity in this case 
  on a listing, the stock price offers 
  to investors the opportunity to position 
  for liquidity events in these two 
  companies for free. 
   Market 
    price               6.75p   Issued capital   41,970,012 
  -------------  ------------  ---------------  ----------- 
   12-month       9.89p (Sept 
    range                '16)   Market cap.        GBP2.83m 
                   1.66p (Mar   NAV.Est. 
                         '16)    01/01/17          GBP8.34m 
  -------------  ------------  ---------------  ----------- 
                                Discount 
   NAV/ share*         20.95p    to NAV                 69% 
  -------------  ------------  ---------------  ----------- 
 
  Source: Align Research 
  * NAV as at 27 December 2016 
 
  CLICK HERE TO ACCESS THE FULL REPORT. 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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January 05, 2017 02:55 ET (07:55 GMT)