Investment Q&A

Q: At the time of the transaction announcement, I had assumed the original ACB from Karora would follow, and the transaction would not be a taxable event. My concern was how would the $0.608/share be treated. I enquired, and received this passed along from their tax dept, "This was a return of capital spin-off followed by a mixed consideration third-party acquisition.It was effectively a fair market value disposition because the consideration was a mix of cash and shares.  To be tax deferred in Canada it has to be shares only." 
In other words, the entire transaction would be taxable this year. (The ACB on the WGX shares reflects that.)

Is this your understanding?  If so, any idea why they would structure the deal this way?  Doing so would seem decidedly non shareholder friendly. 
Thank you for your comments. Tim

Q: CCO market cap is$ 36 Billion and NXE market Cap is $7 Billion

CCO produces 92 million pounds of Uranium and NXE will produce 30 million pound of uranium. 1/3 of what CCO produces

Market value of NXE should be 1/3 of CCO or $12 Billion divided by number of shares outstanding of 565 million gives me a price for NXE of $ 21.00, Share at $ 12.00

What do you think of this calculation. Am I on to something

I own NXE

RAK

Q: Hi 5iResearch Team,

I’m currently quite bullish on the copper industry and would appreciate your thoughts on the best way to invest in this space. Do you think CPER is a solid choice, or would you recommend looking at specific copper companies instead? If the latter, which copper companies do you have the most conviction in at the moment?

Thank you for your time and insights—I greatly appreciate your help.

Q: Hello to 5 i's. I have a small position in SVM (silver crest metals) which was nicely in the green until recently and then late last week it took a big hit to the downside with the announcement of some financing to build out a new mine and a new juristriction (equador). The financing is convertible debt due in 2030 at 4.75 per cent. The stock has to go up about 30 per cent until it can convert to equity. It doesn't seem too bad for me but it seems there are people much smarter than me who sold with that announcement. Do you think the debt that SVM secured is not appropriate/or there is a better way to finance? Or are people selling for another reason, such as , exposure to Equador is too risky/SVM has built 8 mines and 3 processing plants only in China and have no experience in Latin America/ less bullish on precious metal pricing on a go forward basis, or some else? I am tempted to double my small position since the company has no debt (actually they are net cash on the balance sheet and minority equity position in New Pacific Metals, and they operate profitably. does 5 i think SVM, at current share price, is a good option for silver mining exposure?

Q: Good afternoon 5i team,
Following MDI's acquisition of all shares of Explomin Perforacio,lately,will this add to their bottom line, will the synergies be well viewed by the market? MDI is "cheap" and this acquisition does not seem to be much of a catalyst as viewed by the market! Should I move on and would you view a similar company as a better option?
Many thanks,
Jean

Q: Is Russia restricting (or banning) exports of enriched uranium to NATO countries? Do you know if Kazakhstan is also restricting exports since they are the world's top exporter and a client state of Russia. Russia produces uranium at roughly 10% of the amount produced by Kazakhstan. I understand CCO purchases uranium from Kazakhstan. Is this a good time to purchase CCO or would you wait until Trump enters the White House? If Trump accedes to Putin's demands possibly the uranium restrictions would be lifted leading to weakness in CCO's stock? I do find it hard to imagine NATO countries returning to their pre-war acceptance of Russia and its exports in spite of any Trump Putin peace deal. Any thoughts you have would be appreciated.
Regards,
Jim

Q: If I wanted to invest in a Base Metals etf which would you recommend?
Thanks

Q: What is your recent take on Cleveland-Cliffs since their purchase of Stelco? Are their shares worth holding and maybe adding to for the medium to long term?

Q: Hello, today (Nov 20, 2024), SLS is moving up strongly on news that the final steps to complete emigration by year-end is on track, It appears they are shutting down their Canadian office and moving to Switzerland. Is this the reason for the large move? It does not seem to be related to copper as CS and TECK are essentially unchanged. Why would this type of move cause such a move? Perhaps there is another reason. Thanks.

Q: I'm looking at this stock. It's on the TSX-V. Last I looked it was trading at $1.10. I'm tring to get more information on it. Do you have any information on this company?
Thank You

Q: NXE is suggesting 30,000,,000 pounds Uranium a year from their Saskachewan mine. How many pounds do CAMECO produce in total ? RAK

Q: Can you explain the recent surge in volume and price for this penny copper exploration stock? Do you think it is a worthwhile speculation? Are there any notable shareholders of this company (Eric Sprott, Lundin family, etc)?

Q: Morning 5iTeam,

For exposure to gold, would you recommend investing in gold etfs or gold miners? And if your recommendation is gold miners, would you please then name 3 such companes and rank them in order of preference.

Thanks,
H

Q: How was Dynacor’s Q3? What do you think is fair value for the stock or expectation over the next 12 months thanks.

Q: I sold some NEO and am considering a re-buy. I like the direction NEO is taking. If the new USA administration, and the west nations as a whole, want to have economies not dependent on China then rare earth minerals should be on their radar since they are critical and currently almost all rare earths come from China. NEO is one of the few western companies, at least that I know of, that will have production of rare earths and related products that are/will be produced in the west (Estonia). I am considering a rebuy in the $7.50 range? What is your overall opinion of NEO and the rare earths in general? What other publicly traded, western, rare earth companies are there to consider?

Q: When I enter the ticker for IAU (I-80 Gold Corp commons) I get the gold ETF in $US and warrants for IAU BUT not the commons - is this an error in you platform or am I not searchingthe right ticker?

Could you comment on the moves in IAU (recent big drop and part reversal) and the near term financing it needs?

Q: Does your analysis predict, as well as it can, that FR is a good investment for the next 10 years?

Thanks,

Joseph

Q: Is exposure to Mali reason to sell now?

Q: Have the recent declines in these resource companies mainly due to the US new leadership tariff threats or more related to the diminishing China demand.
Would you feel the dividends are safe or should we expect cuts from VALE and others?

Q: I have done well the past few days with POU and CAE but the collapse in I 80 gold this week was gut wrenching. I have traded IAU this summer 4 or 5 times to get my adjusted cost down around $1.45. The new CEO, richard Young made me money when I went dumpster diving with Argounaut Gold early this year. I bought ARG, saw it collapse to almost half when I held my nose and went back into the dumpster and bought at 22 cents. In less than a month Mr. Young sold the key new asset of argonaut gold to alamos gold and I got out at 40 cents. So I got some nice smelling roses out of the dumpster. I think of I 80 as a similiar situation. But is that true since Argonaut was a producing while I 80 is a near producer since their current production is limited. But the market cap for I-80 is only about $200 million and the ev value is a bit higher due to some debt. that is reaaaaly low for got reserves of gold in a tier one juristricion that has lots of infrastructure in place. Mr. Young I believe is more of an accountant that a geologist and what I 80 needs right now is some more favorable financing. You are former sprott guys so you understand this stuff. What's your call on I 80? delisting in the USA stock exchange can be thwarted for a while ( maybe six months), right? can this type of asset garner some good financing in this market? Barrick and Newmount are nearby, would they buy these assets for a market cap of $300 to $400 million? Your thoughts?
On a side note can you direct me to a good site that explains the Lassonde curve?