Q: I have a small position in Archer Exploration from the Wallbridge spinoff. I am thinking of increasing my nickel exposure. When I consider Canada Nickel it seems to have a much higher valuation. What am I missing ? I believe AEM has investments in both companies.
5i Research Answer:
AEM owns 12% of CNC but we do not show it as a declared holder of RCHR. A word search on RCHR news does not get any 'Agnico' hits, either. Archer is very very tiny, and such small companies have a very hard time attracting any investor interest. It is down 88% in the past year which doesn't attract interest, either. CNC is about 40X larger. It has some cash, but no reported revenue, losses and (small) negative cash flow. For nickel exposure, we would consider CNC far superior.