Further to my early post about VXR 1 of DEG's tenements adjoins...

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VVX565

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03/11/18

14:25

Post #: 36379077
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Originally posted by Dazedandconfused ↑

Hi Bollingenuity

Some months ago I looked at DGR and I found it impossible to understand all of the cross ownership relationships.... so decided it was too hard for me. My worry with companies which essential are really investment vehicles rather than focused businesses is... what's in it for the retail investor? The register is likely to be very top heavy, the SP doesn't have to reflect the value of the assets held and the corporate structure is likely to be opaque. In short... my suspicion is these things might be set up to suit the main holders and nothing more.

Having said that... I do think there can be value in running the FA ruler over some of the things that such companies hold [if those assets can be bought into independently]. A couple of examples...

Kirkland Lake [KLA] listed last year on the ASX. Its main asset in Oz is the Fosterville gold mine which seems very profitable but KLA has the bulk of its assets in Canada. KLA does appear to be something of an investment vehicle for Eric Sprott. In that regard it holds something like 10% of DEG. Sprott has made a big bet on the conglomerate gold story which was all the rage this time last year. DGO also has about 7% of DEG. Both companies hold instruments which will allow them to increase their holdings.

In recent weeks ALK announced 2 strategic purchases. An 8.8% buy of CAI [Calidus... a gold explorer in WA] and a 12% buy of EXU [Explaurum ... also a WA junior gold explorer].

Both KLA and ALK seem sound enough as investments.... but the real question is how much growth outlook do you get for your buck? KLA currently seems appropriately priced and ALK is a perennial disappointment. On the other hand DEG, CAI and EXU might be undervalued specs which, if they can demonstrate their value, will bring a greater return for the retail investor by buying directly into them. As always it is a gamble.... but at least one can be assured that some hefty due diligence has gone into the moves done by the large corporate interests.

[Disclosure: I sometimes hold DEG, looked hard at CAI but have never bought and I know next to nothing about EXU.... just throwing these things up for the sake of the discussion]

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Further to my early post about VXR

1 of DEG's tenements adjoins VXR's.. as in loudens Patch which grabbed some attention early when the Pilbara Gold Conglomerate story started and is probably why NST is the #1 holder of VXR as Bill Beaumont has been quoted as saying VXR has some of the best grounds in the Pilbara.....

DEG is doing all the exploration, Trenching/drilling in Loudens Patch I believe.... so seems VXR is getting a free ride on the potential gold story...stay tuned I suppose

Rumour has it NST hold VXR for the Copper/Zinc at Sulphur Springs as a diversification play for just being a pure play goldy.... looking forward to this story playing out

the above is not advice, just my understanding

XAO Value at posting: 5,935.8
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Further to my early post about VXR 1 of DEG's tenements adjoins...

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Further to my early post about VXR 1 of DEG's tenements adjoins...

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