"JRL have stated that they will in effect cease treasury operatrions which has led to the discount in their share price in the first place and look for a strong "company making" project themselves.
So rather than predominately invest in other's projects, they will be an active company in their own right - which usually leads to a premium being placed on their shares."
JRL have never invested in other's projects per se.
The companies that JRL hold have been spun out of their portfolio of tenements.
EME was spun out of JRL to cash in on the money on offer for pure uranium plays.
AHR and ALY now control ground that was tendered in by JRL in return for shares prior to their listing. Same goes for URA and GTE. Given the cash position of JRL it makes sense to get others to pay for the drilling whilst keeping a free carried percentage and in a listed structure to allow a means to realise the value. JRL have never been to market for cash since they listed.
The purpose of JRL is to find things advance them as far and cheaply as possible and then hand ball it. They are geologists not miners.
If you go back in time pre-JRL the MD was involved in Gilt Edged Mining and this was sold prior to mining. This model of business suits their skill set.
What MS did say was "The stockmarket will pay a premium for exploration upside but a discount for net tangible assets"
So watch out for them divest all the realisable assets and end up a small cash box with about $7m or so in cash and build on their tenement position.
JRL Price at posting:
$1.03 Sentiment: Buy Disclosure: Held
