Project Generator Industry Report

You can download our 70-page Project Generator Industry Report by clicking on the following link:
eR-IR-ProjectGenerators_2019-09-27_FINAL

Project Generator Industry Report

Portfolio Investing in Mining to Improve Gains While Reducing Risk

The business model of a Project Generator or Prospect Generator company is to acquire and advance mineral properties, in order to find another company (“Partner”) that will option, acquire, or work with the Project Generator in a Joint Venture (“JV”). A Project Generator searches for properties that it believes, through its knowledge of geology, has the potential to become an economic mineral deposit.

INVESTMENT HIGHLIGHTS:

• For an investor looking to diversify their portfolio with an investment in the mineral sector, an investment in a Project Generator is a good way to gain exposure to various commodities without having to risk investment in one or two mining companies targeting only specific commodities.
• Project Generators create value for shareholders in three ways:

1. 1. 1. 1. 1. 1. 1. Share Price Increase via revenue (cash and/or shares) from Partners, royalties from producing mines, and from a self-funded mineral discovery;
                  2. Spinout of a New Company when a critical mass of properties would benefit from economies of scale or when a self-funded mineral discovery is made and raising capital in a separate company is more prudent;
                  3. Acquisition when a Partner decides to buy out the Project Generator to take control of the project.

• The Project Generator model reduces risks for the investor by:

1. 1. Diversification: Having a diversified portfolio of projects, often in different commodities, and in different geographic areas;
   2. Conserving Capital: Limiting equity dilution by finding Partners to fund the high-risk, more expensive exploration and capital-intensive development of the project;
   3. Recurring Cash Flows: A Project Generator benefits from short-term payments from Partners to fund operations and long-term royalties to build value for shareholders.

COMPANY SPOTLIGHTS:

• Globex Mining Enterprises (TSX:GMX)
• Golden Valley Mines (TSXV:GZZ)
• Mundoro Capital Inc. (TSXV:MUN)
• Riverside Resources Inc. (TSXV:RRI)

FINANCIAL ANALYSIS & VALUATION:

We reviewed three methods of company valuation for three different companies to illustrate how to value Project Generator companies.

• Cash Flow Analysis: Altius Minerals Corporation (TSX:ALS)
• Equity Portfolio Valuation: Golden Valley Mines (TSXV:GZZ)
• Property Valuation: Globex Mining Enterprises (TSX:GMX)

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You can download our 70-page Project Generator Industry Report by clicking on the following link:
eR-IR-ProjectGenerators_2019-09-27_FINAL

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