Just think about the biblical story of David and Goliath. Seriously think about it. There are two people about to engage in mortal combat. One is clearly a mighty giant armed with a large club. The other is a scrawny kid with nothing more than a sling shot. Who would you bet on? Well truth be told most of us would bet on the giant and most of us would be wrong as per the Bible. And that lesson, it is not only size that matters can and should also be applied to your investment decisions as well.
There are mighty corporations with tens of thousands of employees and billions of dollars in revenue. For just one example consider Exxon Mobil Corporation.
Exxon Mobil is truly mighty, ranked as the world’s 5th largest company by revenue; ExxonMobil is also the second largest publicly traded company by market capitalization. With 37 oil refineries in 21 countries constituting a combined daily refining capacity of 6.3 million barrels, ExxonMobil is the largest refiner in the world.
As an investment it is clearly one of the bluest of the blue chips. Over just the last five years Exxon Mobil stock [XOM] has shown moderate but steady gain while also providing a decent 3.8% dividend yield. This is exactly the type of stock investment one should have in one’s portfolio for safety, liquidity and steady growth. But Exxon Mobil is Goliath so sometimes there are other options that deserve your consideration as well.
I recently became acquainted with a relatively tiny company but a company with so much potential it also deserves a real look at by speculative investors. That company is Equitas Resources Corp and it is small in current measureable size but amazingly giant in real upside potential. Let’s look first at its management team.
Kyler Hardy – President & Director
Mr. Hardy is a seasoned and successful entrepreneur who has been involved in mineral exploration and the mining industry for fourteen years. Mr. Hardy is experienced in project generation, exploration management, logistics, raising capital, corporate development and developing alliances and strategic partnerships. He is exactly the kind of man you need to guide an emerging resource company.
Everett Makela – VP of Exploration
Mr. Makela brings over 30 years of exploration experience to the team. During a career with Inco and Vale, Everett held roles of increasing responsibility in settings ranging from grassroots evaluations to near-mine resource definition. The knowledge and expertise gained while working with a global leader in nickel production has prepared him well for the role of technical lead in the Equitas quest for Canada’s next nickel mine. He excels at target generation, design and implementation of exploration programs, and the creation of joint venture and alliance opportunities. Everett holds an Honours Bachelor of Science in Geology from Laurentian University, and is a member of APGO, PEGNL, PDAC and SEG. He retired from Vale as Principal Geologist, North America in 2012. He is Director of the private consulting firm EFMX Consulting Ltd.
Jody Bellefleur – CFO
Ms. Bellefleur has been the Chief Financial Officer of Equitas since February 2014. She has also been the CFO of Zimtu Capital Corp. since June 2013, and has been with the Zimtu group since 2008. She is responsible for all aspects of the regulatory financial reporting, including preparation of quarterly financial statements and management discussion and analysis for all the companies in the Zimtu group. Ms. Bellefleur is a CPA, CGA and a graduate of the University of British Columbia with a Bachelor of Commerce.
Raymond Goldie – Director
Raymond Goldie brings extensive industry experience to Equitas. He is a VP and Senior Mining Analyst for Salman Partners. He is the author of “Inco comes to Labrador”; a book on Inco’s acquisition, progression and development of one of the Voisey’s Bay nickel deposit. Mr. Goldie frequently appears on national television and as a keynote speaker at mining conferences.
David Hodge – Director
Mr. David Hodge, President and Director of Zimtu Capital Corp. has an extensive background in business that includes over fifteen years of experience in the management and financing of publicly-traded companies. Mr. Hodge has been a director of mineral exploration companies since 1996, and has served as President and Director of Commerce Resources Corp. from its initial public offering to the present. His success has been founded on a belief in team building, consultation and strong leadership, as well as a willingness to incorporate expert advice into a viable working enterprise.
Quang Jie Wang – Director
Mr. Quang Jie Wang is an experienced geologist with extensive experience in North America and internationally, managing a wide range of mineral and exploration projects. Mr. Wang is currently the Head of Overseas Exploration of Zijin Mining Group (紫金礦業) (SEHK: 2899, SSE: 601899) and is Zijin’s nominee to serve on the Equitas Board of Directors. Zijin is the largest gold producer, second largest copper producer, and important zinc, tungsten and iron ore producer in all of China.
Tim Fernback – Director
Tim brings to Equitas over twenty years of experience in financing and managing public and private junior companies. Previously he oversaw a prominent British Columbia venture capital firm specializing in financing and consulting, and later ran the Investment Banking/Corporate Finance Division for the Western Canadian based brokerage firm, Wolverton Securities Ltd.
So what are all of these extremely well qualified people focused on? The call it the Garland Project and it is about 25 miles south east of the very well-known and productive Voisey Bay mines in Labrador, Canada. Extensive geo-physical studies have been conducted and the Garland project has given every indication that it is more than just feasible but very likely a very mineral rich area with abundant quantities of minable nickel and other valuable minerals. In other words there is every reason to believe that before too much longer there is an excellent possibility that tiny Equitas Resources Corp can begin to generate a significant positive cash flow.
Should that happen and even while the likelihood of that happening becomes ever more accepted in the investment community there is an excellent chance that the share price of Equitas could explode on the upside. Currently trading at about 12 cents a share it would not be unrealistic to see it soar to well a dollar or even above two dollars a share.
Of course, it is never over until it is over and there are plenty of risks. Nevertheless Equitas clearly has assembled a top flight management team and their prospects are genuinely solid. So you can go with the perceived giant Exxon Mobil and maybe over ten years or so you will see your investment double. Or you can put at least some money with the apparent underdog Equitas Resources Corp and if it performs as I believe it will your investment can increase 50 TIMES in six months. In the end it is all about risk and reward and everyone must exercise their own due diligence. But it is free to look so do it. http://www.equitasresources.com/en/.
Copyright © 2015 Ron Irwin