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 Notes and Blogs prepared by @TheMoneySponge. These should not be taken as investment advice and accuracy in statements cannot be guaranteed. These are to assist other researchers who may wish to research further and serve as a starting point. I may hold a position in the company
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