I recently caught up with Carl Esprey CEO of Contango Holdings PLC (LON:CGO) following news of their gold acquisition in Mali.
Since the announcement Directors have increased their stakes with CEO Carl Esprey acquiring a 1.75% stake in the company and Non Exec Director Phillip Richards with an effective 12.54% of the company by way of investment from Mining investment specialist RAB Capital.
Contango offer a more unique investment proposition which is to acquire and develop near-term cash producing assets with a view to returning ~50% of annual profits back to shareholders by a dividend.
Given projected cashflows of $2m+ per month from both Garalo and LUBU when operational, at todays Market Cap and shares in issue based upon a 50% dividend would see an investment today fully repaid in just a few years.
Carl explains the strategy in the interview and how 2021 should see both assets producing cashflow with both being able to scale up production by re-investment of remaining funds.
Research materials prepared based upon my own analysis and research. Accuracy cannot be guaranteed and research notes should not be taken as investment advice. Please always do your own research.