# Companies with cash backing above MC



## sam76 (21 November 2008)

let em rip.

RED:
MC - $21,000,000
CB -  $30,000,000


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## Pommiegranite (21 November 2008)

*Re: Co's with cash backing above mc*

Sam,

A further criteria would really sort out the men from the boys! i.e generating revenue (as opposed to nambypamby resource stocks which are literally years from getting paid AND will have massive capex hurdels AND therefore expect share dilutions).

*TZL*

Market cap - $45million USD
Revenue - $15million USD
Loss - $12million USD
Cash -$12millionUSD

The real kicker is that the loss was due to 'start up' expenses, which are generally expected and are now reducing. All the while, TZL are increasing revenues, therefore decreasing losses and should be (in a matter of months) cashflow positive.

ps, CEO expects TZ to capture several % of a $50billionUSD market

Plug over


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## prawn_86 (21 November 2008)

IPR - Ipernica

Cash about 25mill
MC about 16 mill


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## bas (21 November 2008)

There are heaps of resource stocks, as long as they hold onto the dough until next cycle rather than waste it drilling holes into a project that will never get off the ground will be fine. 

BRM
EMU
GIR
HDG
CVG

To name a couple i've come across.


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## sam76 (21 November 2008)

AVH 
MC - 3,832,430
CB - 8,000,000


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## So_Cynical (22 November 2008)

There is a bucket load of resource stocks with cash above MC, but only the Goldie's 
have any real hope...broadly assuming, mined commodity prices remain at present levels.

Gold is still very profitable to mine....especially in Aussie dollars.

TRY - TROY RESOURCES


Market Cap:	48,884,173
Cash 60 Million (AUD)
Debt 0
Hedging 0
last quarter Gold production 17,217 Oz (2 operations)
Cost per ounce (AUD) $698
Average price gold sales (AUD) $968


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## noirua (22 November 2008)

Many companies have commitments to spend or are making losses, perhaps both. Many are in the uranium exploration sector.  No point having $6 million in the bank with money pouring away at $4 million a year and little hope of profits or raising more cash.

Only made the point as cash exceeding market capitalization can be misleading.


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## kengaikl (23 November 2008)

No point in looking at cash at bank. You have to factor in where that cash comes from. Borrowings?. It's better to look at net tangible assets per share and compare that to the share price than to look at cash per share. Having said that EHL has got a NTA per share of 78 cents but its been trading under that price for many months. Goes to show how stupid the share market can be sometimes.


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## cuttlefish (23 November 2008)

There are at least a few companies out there with no debt whatsoever, strong and safe positive cashflows and trading at less than half their NTA and at or below cash backing.


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## doogie_goes_off (24 November 2008)

Here's one with a big resource due soon, worth tracking IMO:

At current cash position (9.5M/165M shares) = 0.057c per share, market price is 0.05, wish I'd bought some yesterday! 

ARE     Argonaut Resources NL

Good drill results, although copper is not really flavour of the month.


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## TheAbyss (2 December 2008)

The Australian did some research for us. Excerpt below

In all, 43 stocks had cash backing exceeding 100 per cent of market cap. The "winner" is African nickel fossicker Botswana Metals (BML) whose $8 million cash (as per September quarter cash-flow statement) exceeded its market cap by 358 per cent. Then followed: Cape Lambert Iron (CFE), 355 per cent; EMU Nickel (EMU) 338 per cent; Alara Resources (AUQ) 314 per cent; and New Standard Energy (NSE) 313 per cent. 

Rounding out the top 10: West Wits Mining (WWI) 290 per cent; Aurora Minerals (ARM) 267 per cent; Carnavale Resources (CAV) 247 per cent; Coalworks (CWK) 242 per cent; and RUM Jungle Uranium (RUM) 241 per cent. 

At the shakier end, Avoca Resources (AVO) enjoys a $355 million market cap but holds a mere 2 per cent ($8 million) of cash backing. Others who could do with more cash to justify their valuation are: Summit Resources (SMM), with 3 per cent cash cover; Citigold (CTO) 5 per cent; Pan Australia (PNA) 9 per cent; and White Energy (WEC) 9 per cent. 

Full article here: http://www.theaustralian.news.com.au/business/story/0,28124,24735840-23634,00.html


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## resourceboom (7 January 2009)

I havent done much research on them lately (held during the rises) but I believe AED has a greater cash backing then MC and are making profit.

I doubt I'll get back into these guys tho, as I'm concerned they may waste those dollars on the puffin field in an attempt to get somewhere near flows they previously predicted.


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## resourceboom (7 January 2009)

CFE is mentioned about, MC about twice cash backing, this is my fave.
The reason is I think it is very low risk, as there will be little outflows, and they have some great sites, that they plan on JORCing an selling for great profits, like they did with their previous site, and they have a keen Chinese buyer !!


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## resourceboom (7 January 2009)

AJL is I believe pretty close to cash backing and another low risk play imo.
This is because recently they forecast solid growth, not just profits.


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## resourceboom (7 January 2009)

Although its not cash backed over MC,

AEP - Allco Equity partners looks like a good solid play imo.

The current price (around $1.8) is more then compensated by an NTA of around 4.50ish at 30 Nov (when the market was hammered)

The MC is about $170M with around $80M cash, the bulk of their investements is about $300M in IBA health, in shares and convertible notes.
So it requires a bit of confidence in IBA to purchase AEP, but IBA has done ok over the last month too.

So still, think its massively undervalued, and very safe.


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## justiceotp (7 January 2009)

AGO - Atlas Iron

90-100Mil in bank and no debt.
have completed first 2 shipments to china and also put contracts into place.

http://www.atlasiron.com.au/irm/Company/ShowPage.aspx?CPID=1817

This link will give you an indication of projected earnings.


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## justiceotp (7 January 2009)

BRM - Brockman Resources

Over 100 Mil in the bank and sitting on some nice iron deposits.
Price has been rising a little last few days so cash backing approaching MC


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## cuttlefish (7 January 2009)

AGO's market cap is over $300 million so if they've only got $100m cash it doesn't really qualify.  (technically neither do the previous two posts either).


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## justiceotp (7 January 2009)

ok ill try again then  with one last one

MAK - Minemakers

about 100 Mil in the bank and MC of 60-70 Mil


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## resourceboom (7 January 2009)

cuttlefish said:


> AGO's market cap is over $300 million so if they've only got $100m cash it doesn't really qualify.  (technically neither do the previous two posts either).




Hi Cuttlefish, correct if the other 2 are AEP and AJL

But AEP I think could easily sell IBA and be well above; I know, technically still doesn't count. 

And AJL, not sure, someone might need to help out here, but must at least be very close (after repaying debt, once cash from SGL sales is finalised) I know, technically still doesn't count. 

But rather then start a new thread, something like "Stocks with Cash and Liquid Investments with no debt if paid off, that are making profit or have prospective asset sales, that should be safe investments" blah blah, you get the drift, I thought I'd instead add to this thread.... hehe 

Its still a good thread !!


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## resourceboom (7 January 2009)

cuttlefish said:


> There are at least a few companies out there with no debt whatsoever, strong and safe positive cashflows and trading at less than half their NTA and at or below cash backing.




.... ooops, actually, yes like this is what I'm looking for!!


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## resourceboom (7 January 2009)

Im sure no-ones interested but Im looking round for plays that don't require huge capital expenses coming up, rules out a lot of resource plays.

Debt is currently poison, and even the need for financing can cause massive damages to a companies share price, which is self fulfilling destruction if massive dilution is required to raise funds.

PPP was a play I was getting quite keen on, had around 20-25c ps cash, and was trading at 19c, and approx 3 mill barrels oil to make from Tui. I bought a couple for the smsf, but then the buying up from NZO came in, and now its staying around 25-30c, whilst NZO is awaiting approval to buy more shares!!


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## cuttlefish (8 January 2009)

resourceboom said:


> But AEP I think could easily sell IBA and be well above; I know, technically still doesn't count.
> 
> And AJL, not sure, someone might need to help out here, but must at least be very close (after repaying debt, once cash from SGL sales is finalised) I know, technically still doesn't count.




Yeah I got the drift of why you included them - I'd agree they do fit the vein of the thread - just thought I'd mention it so justiceotp didn't think I was unfairly singling his example out.


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## cuttlefish (8 January 2009)

justiceotp said:


> ok ill try again then  with one last one
> 
> MAK - Minemakers
> 
> about 100 Mil in the bank and MC of 60-70 Mil




Sorry to pull you up again but as far as I can tell from MAK's last (Sept) quarterly they had only $10 million cash in the bank.  They also had about 14 million 30c options expire in Sept - but even if all of these were exercised that would only put another $4 million in the bank - so overall probably around $14 million unless there has been some cap raising or something I don't know about?


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## So_Cynical (8 January 2009)

So_Cynical said:


> There is a bucket load of resource stocks with cash above MC, but only the Goldie's
> have any real hope...broadly assuming, mined commodity prices remain at present levels.
> 
> Gold is still very profitable to mine....especially in Aussie dollars.
> ...




Due to the recent run the gold stocks are having, Troy no longer has
cash backing above MC......current Market Cap: 76,472,099


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## justiceotp (8 January 2009)

Yeah sorry cuttlefish you are right from memory they had about 12 mil in bank at last cashflow report, the 100 mil i had in my head is what they are planning to raise down the track for the cost of setting up the mine.


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## resourceboom (8 January 2009)

Looks like BRM - brockman's been going for a bit of a run lately, now above cash backing too.


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## justiceotp (8 January 2009)

Yeah the one that i submit that actually fits the guideline of the thread had to go and prove me wrong and get its MC over CF, but I'm holding quite a few of these so I'm happy to be made wrong.


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## suhm (3 October 2011)

Thought this thread could be revived, there must be a few net nets on the ASX, I haven't really found any yet so if you care to share your cigar butts that would be great.


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## mr. jeff (5 October 2011)

Well - not strictly cash, but TBR has approx $100M in gold and cash backing a market cap of $120M plus a mining operation with good life and 50kOz/year production plus exploration near PRU.

Also, MLM if you have a look at  a recent post, they have a big chunk of MTE and others that is worth more than their current SP. Worth checking that too. At that time (SP values changed now) value of assets was 57c and they were trading at approx 40c. 
This has changed again and probably for the better.

Although neither are cash, they both offer good options (of course gold could tank now) so it is not exactly worthy of the thread but hope it is of help to some readers.


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## suhm (5 October 2011)

Good old TBR, have to go into the notes to realise that they are holding so much gold in the bank, you have to factor in tax when they sell the gold. I sold out at these sort of levels about a year ago when Billis and co did the iron ore deal for RND so they have another year of gold stored in the vaults. I would rebuy if went down further even with the lack of promotion.

EXS is probably the closest to being a net net. Basically its cash backing is about its market cap but again it also has to pay a large amount of tax but is going to pay this out as a franked dividend. U get a gold mine and copper gold exploration tenenmants and a royalty for copper production for free. Don't see it going up by much though. I hold. Will probably sell a bit ex div.


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## mr. jeff (6 October 2011)

Exco was a great ride and a no brainer with their gold production and takeover potential from IVA but unfortunately all that is really in the past now as they are just in a holding pattern, so if you hold, then good, if you don't, then might not see much of a capital return if you buy now. Potential if you want some franking credits, but I am not well versed in exactly how much and when the capital return is to be completed.

There must be other cash backed stocks. Anyone?!


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## stockGURU (6 February 2015)

Intrepid Mines Limited (IAU) 
Mount Gibson Iron Limited (MGX) 

Any others at the moment?


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## MrChow (8 March 2017)

Anyone have any further cash backed stocks?

KAR is the famous one, ACR is getting close-ish as well.


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## Klogg (8 March 2017)

Last I checked, MPO (Molopo Energy) was quite close.


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