Q: Hi Peter…May I have your thoughts on Almonte Industries? Do they have earnings and positive cash flow? Is insider ownership reasonable? Any idea why they are listed in so many different exchanges? With the shares trading at .79 CAD are they your basic lottery ticket with good qualities? This is a public question.
Jim
Jim
5i Research Answer:
Insiders own 6.95%. Global Tungsten owns 14.75%. Its revenue base is about $25M, but it is losing money and cash flow is negative. It has $125M net debt. Many mining companies do list on multiple exchanges. Note that on some exchanges, such as OTC in the US, it does not 'sponsor' any listing, but it simply trades to facilitate trading by US investors. With operations in Korea it has lots of interest from international investors. With its debt and cash flow it certainly should be considered risky. The tungsten market can be volatile and cyclical, but it does have good qualities and if it can achived commercial production investors should take interest.