I did a lot of DD on this company, even though given who had brought it to my attention, I knew that I'd probably like what I'd find. Yet I was looking to make a (relatively speaking) healthy investment and I had to know more, to get comfortable with it. What this wasn't was your typical hit or miss, continual dilution for funding, PM microcap (that potentially makes you a few bucks or goes to nil - you know what I mean. This felt different, how did it get here? LOL, I'd forgotten how far back I looked, and once again emphasizing these notes the products of eyeballing, not claiming I read the early stuff; I'm happy to share my scribbles (DYODD on everything, right?):
June 2002 - New Corona Gold comes out as part of an amalgamation transaction
Dec 2002 - f/st signed by Peter Walker and Peter McRae (who are they?!);
Dec 2003 - $3m balance sheet and 14 million shares o/s
Dec 2004 - $26m balance sheet...leading to w/down in investment ...Unisphere Waste co.; 14.5 m o/s. Rights offering 4 shares gives you rights for one new share purchase and if you're no interested Dundee will take them off your hands
Dec 2005 - Big right down effected, the b/s is $1.2m and 18.3 m shares o/s. Murray John (CEO of Dundee Resources and subsequently in 2011 Chair of RYG Ryan Gold joins the co.)
Dec 2006 - $706k balance sheet - I smell big write offs! as in clear the decks; 18.3 m shares o/s
Dec 2007 - Hello! $20m balance sheet "Dundee owns 4.971m shares or 27% of the co.)...
Subsequently - Goodman is beneficial owner of 29% or 5.471m shares of CRG...
Mar 15 per my handy spreadsheet CRG has 18.9m o/s x $1.20 = $22.5m market cap; owns securities w/ mkt value of $30m or $1.59 / share - so market cap is trading at a large disco to the porfolio investments. Further CRG has $12m cash net of liabilities. Total "liquidation" value of the co is $42m or $2.23 / share. That's a $1.07 (47%) discount from the liquidation value.
If you follow jrs then you know that RYG is going to be one of THE plays to watch insofar as Yukon drilling in 2011. RYG is the namesake of Shawn Ryan who along w/ his wife is behind Yukon Gold Rush 2.0 - the guys behind Underworld and Kaminak and all of his props have been rolled into RYG! CRG owns 6.6m and have cheap wts for another .8m - and 3 Dundee reps are on the board including Murray John. Sabina is a beauty and don't discount CRG's 5m shares of TML. So you get that $1.07 AND the management for free.
Let's keep in mind that we won't know CRG's transactions and cash levels until after the Dec 2010 stms roll out and I will post again soon thereafter, if not before.
PS - An excellent "LatAm" letter writer has also endorsed his company, he likes it. (altho all of CRG's holdings are in Canada, that is quite cool!. :)
DYODD. |
