Q: Hi Peter & Co…..wondering what your thoughts are on Atlas Salt as they make their way through a major development in NL although with considerable debt…..appreciate your great service. Thanks.
5i Research Answer:
Still a small company at $90M market cap, even after an 88% one-year gain. The relationship with Sandvik is positive, as the company moves torwards a feasibility study. It is still pre-revenue, with losses and negative cash flow. But the project is moving forward and there is certainly potential. Investors are buying for the future. There are still plenty of risk, and more capital is going to be needed here. It is hard to recommend due to its early stage and high risk, but there is potential here for small cap investors, perhaps as part of a small cap basket with other stocks. We would not want a big position. Insiders own 8% and have been buyers in the last six months. Vulcan Minerals owns 26.5%.