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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Peter,your ex firm Sprott is taking over CEF,expected closing in Q1.2018.I have 1000 shs of CEF.A .The proposal is 1 sh of Cef.a for 1 new trust unit.Sprott stated that there is over $300m in value to be realized for Cef.a shareholders relative to 9% pre announcement NAV discount. Please advise of how much cash I will receive & Sprottt's calculation formula.If undervalued,then is it advisable to buy some more shares now?Also will the new trust unit be listed on TSX.I read u response to q on Nov 15--tender offer & select cash option(cash & shs).Thanks for u usual great services & views
Read Answer Asked by Peter on November 20, 2017
Q: Regarding Sprott Asset management inc purchasing CEF.A and common shares. A quick reading of the plan of arrangement seems to indicate that in the default option (do nothing) CEF.A units will be converted to trust units of the new entity (SII ?) on a one to one basis, and that no payment will be made to CEF.A units owners. Is this a correct interpretation ?
Read Answer Asked by Alejandro (Alex) on November 20, 2017
Q: Hi, what is your outlook for base metals for the next 12 months?
Do you feel a need to have exposure?
If so, please rank the above three in terms of your preference. If you have a favourite outside of the list, please share. I own a bit of teck.b already.
Thank you
Karim
Read Answer Asked by Karim on November 17, 2017
Q: Hello Peter and Ryan,
I own McEwen MIning and Gold Standard Ventures. The news on both appeared to be decent when i bought them over 4 months ago, both are down quite a bit now. Should i stick with them or take my losses and move onto Kirkland lake gold and B2 Gold? Also, is the $24 share from Aurora a Stock offer and not a cash offer for Cannimed? Is that the reason why the Cannimed shares have not increased to 24 or higher on the market (seem to be hovering between18-20 range). Thank you.
Read Answer Asked by umedali on November 17, 2017
Q: hello 5i:
We've received an Information Circular, via the mail, regarding the acquisition of CEF.A, by Sprott Gold and Silver Trust. The "circular" (I have seen MUCH smaller phone books) is written in legalese, a language few understand. I note you had a question on this back in March, but none since.
Can you advise a course of action, or what really needs to be done on our part. We are very small shareholders, so will have no impact on any vote.
thanks
Paul
Read Answer Asked by Paul on November 15, 2017
Q: I am trying to figure out how to deal with precious metals holdings in our portfolios, which are mostly in registered accounts. We have held WPM (previously SLW) for quite a few years and I have watched it get to a + 60% profit and then erode back to what is now a -3% loss. FR was purchased a year and a half ago and is now at a loss of -53%. Our total allocation was about 5% but is now just over 2%. Should these be left 'forever' to rise and fall with the precious metal pricing and just be used to balance a weak equity market. Or, should they be traded at some point (question of course, as always, is "what point?" ). As our allocation now is half of what it was, should I be topping up to 5% again ? I just don't get how to handle this part of our portfolio and would appreciate any illumination you can shed ! Also, any suggestions as to whether I should stick with WPM and FR or make changes,( particularly with FR?). Thanks, as always.
Read Answer Asked by Alexandra on November 14, 2017
Q: Hi Team,
Your thoughts on Quantum Cobalt Corp, please? Do you think it is a good speculative play on cobalt? Is the revival of the mines to extract cobalt going to require a lot of investment? I want to know how much is hype and promotion in play and how much is real? How is the financial situation of the company at this time? If you don't like it then what company do you suggest for cobalt play? Thanks for your insight as always!
Have a wonderful week,
Read Answer Asked by Saeed on November 14, 2017
Q: On your Sept 25th response to my question about AQA you noted that they need to raise cash in order to finance development and you would like to see more insider ownership.
If I understand Aquilla's Nov 9/10th press releases they have now raised some cash. Do you agree and do you think $10 million will be sufficient for the next 12 months or will more money be needed in the interim?
Has insider ownership changed? Is OBL considered to be an insider now that they have one board seat and 14% ownership stake?
They note in their press release that project is "high grade polymetallic". Do you think this is an overstatement? I always thought they had a low grade deposit. The market capitalization is somewhere around 70 million dollars which seems about right to me. If it was higher grade I would have thought the capitalization would have been higher.
Thanks
Jim
Read Answer Asked by James on November 14, 2017