Sector
NewswireTM
Sector: Mining - Metals and Minerals
:
News Release - March
1, 2014
2:34 PM ET
Mining expert Jay Taylor of Hard
Money Advisors initiates coverage on Fancamp Exploration Ltd. (FNC.V)
"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."
- J. Taylor Feb. 28, 2014 |
NEW
YORK, NY, March 1, 2014 /Sector Newswire/ - Fancamp
Exploration Ltd. (TSX-V: FNC)
(US listing: FNCJF) (Frankfurt: 3F9)
is
the subject of a newly released advisory from mining analyst Jay Taylor
of Hard Money Advisors Inc. Fancamp is a junior miner with ownership
interests in several exceptional advanced-stage flagship properties.
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 FNC.V and recommended they add FNC.V 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;
FNC.V 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 (CHM
15.025 million @ $0.35); ARGEX TITANIUM INC
(RGX 6 million @$0.82);LAMELEE IRON ORE LTD
(TSX.V-LIR 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."
...click here for full copy from source |
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.
SOURCE: Sector Newswire editorial
editorial@SectorNewswire.com
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