From their latest MD&A : "It should be noted that due to income tax considerations, we’ve made the difficult decision to no longer actively trade the portfolio. While active trading was a huge boon to our returns previously, we believe that the tax consequences of earning profits from trading don’t outweigh any benefits that we’ll receive from trading the portfolio. Therefore, it’s likely that overall returns will be dictated primarily by the returns of our existing portfolio. This was a difficult decision as active trading has been so accretive, but the math is the math"
In the Q3 letter they reported that the property assets have been sold for 10m CAD. This has derisked the investment case somewhat, yet the discount is probably still around 20% considering the strong price increase in Sprott and Yellow Cake.
From their Q3 letter: "We have started to lose confidence that we will be able identify an opportunity that is sufficiently attractive. If we cannot find a suitable acquisition in the near future, we will likely choose to liquidate this Company."
So liquidation seems more and more likely, any idea on how they would return capital to shareholders in such a scenario?
The sale of the property has derisked it a lot as the NAV is now much more liquid. I don’t have an answer, but being it Kuppy it would certainly be in a smart way
I hope Kuppy is deploying the capital from the sale of Mongolian assets (and returning that capital to investors) by first buying back shares at (substantially) less than NAV. Uranium prices are up and Kuppy has been all over this trade with 41% of MNGGF portfolio invested in Uranium at end of Q3 2023. Sprott Uranium is up 43% since that time.
Hey, thanks for the note. Is there any timeframe on ticking clock / returning capital to shareholders ? And if so, in what shape (do you think) the roc will be ? Buybacks/ Div ? Thanks. Also, the KEDM business is unlikely to wind up (any time soon anyway), so would this be a stub left after the Mongolian properties / OIL/U equities are sold ?
From their latest MD&A : "It should be noted that due to income tax considerations, we’ve made the difficult decision to no longer actively trade the portfolio. While active trading was a huge boon to our returns previously, we believe that the tax consequences of earning profits from trading don’t outweigh any benefits that we’ll receive from trading the portfolio. Therefore, it’s likely that overall returns will be dictated primarily by the returns of our existing portfolio. This was a difficult decision as active trading has been so accretive, but the math is the math"
In the Q3 letter they reported that the property assets have been sold for 10m CAD. This has derisked the investment case somewhat, yet the discount is probably still around 20% considering the strong price increase in Sprott and Yellow Cake.
From their Q3 letter: "We have started to lose confidence that we will be able identify an opportunity that is sufficiently attractive. If we cannot find a suitable acquisition in the near future, we will likely choose to liquidate this Company."
So liquidation seems more and more likely, any idea on how they would return capital to shareholders in such a scenario?
The sale of the property has derisked it a lot as the NAV is now much more liquid. I don’t have an answer, but being it Kuppy it would certainly be in a smart way
Thanks, i'm thinking of shifting some of my Sprott holdings into this name
Hopefully he has learned from his African Mining debacle then. He wasn't smart and/or ethical in that instance.
I hope Kuppy is deploying the capital from the sale of Mongolian assets (and returning that capital to investors) by first buying back shares at (substantially) less than NAV. Uranium prices are up and Kuppy has been all over this trade with 41% of MNGGF portfolio invested in Uranium at end of Q3 2023. Sprott Uranium is up 43% since that time.
Hey, thanks for the note. Is there any timeframe on ticking clock / returning capital to shareholders ? And if so, in what shape (do you think) the roc will be ? Buybacks/ Div ? Thanks. Also, the KEDM business is unlikely to wind up (any time soon anyway), so would this be a stub left after the Mongolian properties / OIL/U equities are sold ?