Bathurst Metals offers a compelling investment opportunity in the exploration sector with what we believe are undervalued resource assets. Please read /download our corporate presentation.
Message from the CFO: Bathurst Metals a Compelling Investment
When I was first introduced to Bathurst Metals Corp located in Nunavut, the gold exploration marketplace was not in a good way. Undercapitalized and unloved, the precious metal sector was not looking so good and as a finance professional, I knew there were many other sectors with better immediate prospects. The tech sector in particular was attracting capital and liquidity in a massive way – and the returns were downright fantastic but then something changed. The economy stumbled, the stock market dropped precipitously and the Fed went into action. Then a new player entered the game – Covid-19. Where Fed’s job was somewhat straightforward initially – now with Covid-19, it became a much more onerous task.
Covid-19 turned out to a global event and required a global monetary response. Mounting unemployment coupled with falling expenditures, both personal and enterprise, have laid waste to an otherwise healthy economy. One of the easiest and arguably the most effective policy tools of the Central Banks is Quantitative Easing. And by gosh every Central Bankers backed up the truck and began to print their respective currencies, lowered their interest rates and bought back bonds. Today we have over $18T (source: Bloomberg Dec 2020) in negative yielding debt where Portugal now yields 0% and the UST 10yr .90%. In fact, close to 60% of the world central banks have their policy rates below 1% – which is feat not matched in over 70yrs (source: BIS, TS Lombard).
That liquidity has to find a home, and let’s face it, who in his right mind would buy a bond guaranteed to lose money. The stock markets have been the main beneficiaries to a point where the S&P 500 Price Earnings ratio (P/E) is mid to high 20’s in an economy with double digit unemployment which in normal recessionary times one would expect 10-15x. By another measure, the Total Stock Market Capitalization to GDP ratio is pushing 180% where prior to 2010 it ranged between 40-100% – which is the highest its ever been since measuring. Clearly the stock markets are fully valued.
But you wouldn’t think that looking at the commodities and precious metal markets. The Commodities to Equities Ratio is now at .5058, lower than the Tech Bubble of 2000 and the most recent peak of 8.75 in 2008 (source: Incrementum AG Nov 2020). Clearly this precious metal sector is undervalued and under owned. But I digress…
Now back to Bathurst Metals Corp. The goal of our management is to increase corporate & shareholder value on a consistent basis. It is my belief that corporate & shareholder value represents the sum total of that value attributable to our stakeholders. Of course, Bathurst has to deliver milestones and travel up that value chain. And I think we’ve done the best we can to date in light of the challenges we faced. It will take all of us working hard, collaborating and staying focused to come out of these times stronger and ready for the future.
Bathurst represents a compelling investment opportunity in the gold exploration sector and we believe the historical work on our various properties shows excellent potential gold, silver, platinum and palladium deposits. By continuing to explore, drill our assets and prove up results, we believe we can add significant corporate & shareholder value in an improving global precious metal marketplace.
It is our intent, under the current challenging conditions of our economic environment, to carefully determine the timing and scale of investments to apply to our current assets in Nunavut. While doing so, we will remain on course with our aim of achieving our long-term vision of creating a world class precious metal exploration company.
Canada Gold & Silver Mining Exploration Stocks
Gold and silver market outlook as Canada top mining stocks
In recent days, silver mining stocks did catch the eye of many speculators, where the metal soared based on hopes that a buying frenzy will bring a short squeeze in the market, significantly increasing the prices. It was believed that the trend could play out for a while, and the new interest is expected to benefit other precious metals. As for the gold mining stocks, the market is a bit larger, and that means the same strategy might not work, but a steady move higher is highly likely.
Now, gold trades at around US$1,850 per ounce, where even despite the pandemic, it remained up. This strength is something that investors take note of, and we will help you understand its performance in a much better manner. We do understand that gold tends to rise whenever you, as the investor, try to seek out protection against financial risks, or against inflation, and this could have adverse effects in 2021. However, with inflation expected to be pushed down by numerous financial stimulus as well as a strong economic rebound in the country, the gold mining stocks are expected to remain steady in 2021, and if things go well, it could trigger more buying in 2022.
Canada mining exploration stocks for a better tomorrow
Being the smart investor that you are, of course, you would prefer a goose that lays a golden egg rather than just the egg itself. This is exactly what Canada’s gold mining stock is, especially to value investors. With Bathurst Metals, you don’t need to worry about anything – in fact, you don’t need to insure your investment or hire someone to protect it. We are giving you an opportunity to play on the price of gold while collecting some modest yields along the way. The reason for this is the fact that the price of our gold is consistently going up, which in turn, increases the profits as well as the share prices of our gold mining stocks.
You see, gold prices are largely based upon demand and supply, and the supply, despite the efforts of multinational gold mining companies, remains relatively constant. And even with all the gold mining going on around the world, there is rarely a surge in supply, which means that the gold still maintains its purchasing power. So, investing in our gold mining stocks, means that you will be poised for much greater profits, considering the steady growth and increase in demand. Moreover, we made great progress in the last couple of years in streamlining our operations, continuing to explore, drill our assets and improve our service delivery, which not only makes our Canada gold mining stocks even more valuable but also adds significant value to us, as a company, as well as our shareholders.
Why invest in Bathurst metals
High-quality diversified portfolio – we offer a diversified portfolio of high-quality, and long-life operating assets across all jurisdictions.
Organic potential growth – we offer an attractive portfolio of low-capital intensity, high return as well as near-term growth opportunities.
Experienced leadership – our board of directors and the entire management do have a track record in creating value through exploration, project development as well as operations. Also, they do have experience across the various exploration, mining, and processing skillsets.
Financial strength – our balance sheet is quite strong and also has a significant net cash position, which facilitates the growth of our company as well as capital return evaluation.
Free cash flow leader, and also have a high margin assets