Tuesday, March 4, 2014

Brazil Resources -- PDAC Gold Developer Interview

Here's a video I shot at PDAC 2014 with Amir Adnani, the head of Brazil Resources (BRI on the TSX-V in Canada; BRIZF on the OTCQX in the U.S.)

Brazil Resources is a gold developer in Brazil. It acquired another company, Brazilian Gold, back in November. The points that Amir makes in our chat ...

  • It has a total resource (all categories) of 3.9 million ounces of gold.
  • It has $6 million in cash and a tight share structure.
  • It has a strategic partnership with a Brazilian company headed by a former high-level politician. This removes a lot of the political hurdles.
  • There is a preliminary economic estimate on its flagship Sao George Project. Brazil Resources got this project as part of its acquisition of Brazilian Gold.

And yet, at first, investors hated the deal, judging by the action in the share price. Then, when they wised up to what Amir and his team had done, the share price went like this ...

(Updated chart)

As you can see, the stock has more than doubled since late December.  Even now, it has a market cap of just $98.5 million.  It has volume that's too light for me to recommend this in my current Oxford Club publications. And after such a meteoric rise, one might expect a bit of consolidation.

So, if this company attracts your interest, do your own due diligence and be prepared to ride out volatility .... perhaps a lot of volatility.  And finally, just because I'm profiling Brazil Resources does not make this an endorsement or recommendation.

One thing you may take away from this video is that Amir Adnani is a master of the art of the deal.  He's always looking for the next accretive acquisition. He sees real opportunity in the sub-$100 million market cap space, a space he says the big miners are ignoring.

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