Fortune Minerals (FT)

[ryanonthevedder]

orig article from etfdailynews interview with Micheal Fowler senior mining analyst with Loewen, Ondaatje, McCutcheon Ltd.

http://etfdailynews.com/2012/08/22/michael-fowler-2000-gold-price-will-soon-kickstart-mining-shares-gdx-brd-azk-wdo-cfo/

I like Fortune Minerals Ltd. (FT:TSX). It has a large metallurgical coal deposit, Mt. Klappan, in British Columbia. The other property, NICO, is a cobalt-gold-bismuth deposit in the Northwest Territories. It has a mixture of commodities. There is also some copper in there. Both projects need quite a lot of money to get going. The company has been aggressively looking for a strategic investor mining company in Asia. It already has an Asian partner, POSCO (PKX:NYSE) for the Mount Klappan coal deposit and is looking for another Asian partner for the NICO deposit. Despite money being very scarce now, there is a lot of money in Asia. I think Fortune is doing a very good job of trying to find Asian investors for its projects. It’s trading for a song right now, around $0.60, with about a $70M market cap. These two projects have four feasibility studies, and the total net present values of those studies translate into over $5/share. So it’s trading at a big valuation discount.

Good news for FT holders!