Ryan Gold is yet another net-net, which regular readers will realize is a theme of the blog. The company has $21.2 million of cash on their balance sheet as of their last release, and 117.1 million shares, which provides a cash per share value of $0.179, materially in excess of the current share price. In fact, the company is trading at 61% of its NCAV, which is well into Ben Graham territory. The company also owns stock and warrants in Carlisle Goldfields Limited and Coastal Gold Corp. Based on current prices, the Carlisle Goldfields stock is worth about $280,000 and the Coastal Gold stock is worth about $80,000. Carlisle is also a net-net, although barely, so there is a little bit of value in these positions, that I would ascribe to the margin of safety bucket.
As Dundee Corporation owns or controls 26% of the company, I would expect them to use it as a cash shell to merge with a business they're taking public. I have no evidence that this will happen, (it is merely my suspicion) and I would certainly prefer a liquidation. However, a merger like that would likely coincide with a stock promotion of the company's shares, which would likely allow them to approach a more reasonable valuation.
I've divided this article into paragraphs, as the first is factual fundamental analysis and the second is rank speculation. Use them as you see fit.
Disclosure: Long RYG
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