Q: I read a small “newspaper” article on this relatively newly listed venture and wondered if you had any thoughts on it. It is still smaller cap than I think you find investable, but it strikes me that it has some possible tailwinds and potential for growth?
5i Research Answer:
NRC operates as a royalty company. The company owns royalty interest in properties that possess gold, silver, and copper deposits. That being said, NRC is a newly established entity that just came public, the company also does not have any operations to generate revenue and cash flow yet. The only asset it has is the $10M of funds held in escrow. It is still very early days for NRC, and we think given the small market cap and the almost non-existent operational history, investors are better off looking for opportunities elsewhere as the risk is too meaningful here.