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$QRC (0.57 CAD) 1/25 - @QueensRdCapital $QRC.V I recommend people watch the recent @CruxInvestor interview with CEO Warren Gilman: . This is a very interesting interview. In this mega-thread I share my thoughts and notes. Please read on...
$QRC (0.57 CAD) 2/25 - Important to note that $QRC.V became a public company because Gilman's investors 'asked him to'. This is a vehicle whose primary concern is growing (+preserving) the capital of its biggest investors a la 'Don't lose Mr Li's (read: Forrest et al.) money!'...
$QRC (0.57 CAD) 3/25 - Gilman emphasizes how important it is to invest in great ore bodies. If it will be a mine, the commodity doesn't matter (commodity agnostic). It means $QRC.V will not invest in many 'potential' mines, but rather take concentrated bets on 'when, not if'...
$QRC (0.57 CAD) 4/25 - It is this very 'when, not if' idea which lends itself to convertible debt structures. I see many people saying that #uranium is a great sector if you believe in the thesis because it is a 'when, not if' investment case...
$QRC (0.57 CAD) 5/25 - While I agree, it is important to understand what the cost of waiting for 'when' is. Often, the outcome of 'if' is known sooner than 'when'. As a direct investor in company shares, waiting for 'when' leaves you subject to more dilution...
$QRC (0.57 CAD) 6/25 - Therefore, 'when' can sometimes be as costly as an 'if' which didn't work out. With the convertible debt model, it doesn't matter 'when' will occur, because a %-coupon from the debt will always guarantee growth.
$QRC (0.57 CAD) 7/25 - Sure, it might not be as 'face-ripping' as owing shares directly in those that do well, but that is why $QRC debt is structured as converts which carry the unlimited upside in the case things work out...
$QRC (0.57 CAD) 8/25 - Gilman goes on to mention the lack of liquidity in the market. 'People who want to get in have a hard time getting positioned...' A KEY statement Gilman makes here is that $QRC.V has 'not done a public issue yet, at some point in our future we will'...
$QRC (0.57 CAD) 9/25 - Perhaps this is an over-analysis - but the way Gilman says that liquidity will 'change with time' and a public issue being done at 'some point in our future' suggests it is not his immediate priority/concern. And he is right...
$QRC (0.57 CAD) 10/25 - Why would he need to seek money from a public offering now when he can guarantee investment from the current billionaire investors he knows? They will continue to provide capital at the $100Ms scale until they have the positions they need. Only then...
$QRC (0.57 CAD) 11/25 - ...will Gilman go for a public issue. So the important thing to consider is this: where does the share price go in this time? If a public issue comes only after subsequent financings with the billionaires, it can be assumed the public issue will...
$QRC (0.57 CAD) 12/25 - ...be raised at a higher price than the current levels. This is why as a retail investor I have tried to buy what I can in the market (and will continue to at these recent higher prices). Gilman is not shy, suggesting $QRC.V will become a $1bn+ MCAP...
$QRC (0.57 CAD) 13/25 - He mentions $QRC.V intends to uplist to the TSX in the new year and issue a dividend 'within their first year' i.e. before Feb'21. These will be catalyst moments as the TSX uplisting and dividend unlock new institutional investment who may...
$QRC (0.57 CAD) 14/25 - ...be restricted from investing in $QRC.V on the venture exchange currently (TSXV). It also broadens the access to foreign brokers to buying $QRC stock on behalf of their clients. Gilman goes on to describe the 3 significant changes in $QRC's future...
$QRC (0.57 CAD) 15/25 - 1) Changes in the underlying investments' value 2) dividend & income and 3) 'step-changes in valuations' of the companies $QRC.V invests in as they move towards development/production. It is perhaps important to note then that @NexGenEnergy_ will...
$QRC (0.57 CAD) 16/25 - ...by Q1/2'21 have completed two major milestones, their FS and EA (see pic below from @NexGenEnergy_ Nov 10th, 2020 MD&A). This I think could be one of the first major 'step-wise' changes in $QRC.V valuation in early 2021 which I am positioning for. cont.
$QRC (0.57 CAD) 17/25 - Gilman mentions that all their current investments are 'potential takeover targets' where, in such scenarios $QRC.V will receive multiples of the cash it invested which will be reinvested. He mentions $QRC currently has $20M USD for investment...
$QRC (0.57 CAD) 18/25 - Afterwhich $QRC.V will finance again and 'pass the hat around' once they are TSX main-board listed and have begun issuing a dividend in 2021. Re: investment criteria, Gilman states $QRC is stage of development agnostic (different to original language).
$QRC (0.57 CAD) 19/25 - I appreciate this more aggressive strategy of $QRC.V by considering projects which are still early in their life cycle. Related to this, Gilman highlights how the lengthening period of permitting in mining can play to the advantage of $QRC...
$QRC (0.57 CAD) 20/25 - ...whereby the longer permitting time simply provides more time for $QRC.V to receive the coupon on their investments. This simply guarantees more value for $QRC shareholders. Again, 'it may take a while, but it will happen' ergo: 'when, not if'.
$QRC (0.57 CAD) 21/25 - Withholding tax, in part, in Canada dictates the convert terms (e.g. $ISO & $NXE) and Gilman mentions he is happy for $QRC.V to refinance terms near maturity. More importantly, it is suggested that the terms of the $QRC debt mean the companies...
$QRC (0.57 CAD) 22/25 - ...cannot have any other debt out with other lenders, and thus $QRC's credit positions are protected in this sense. Asked about other commodities Gilman doesn't 'follow fads' and wouldn't invest in Nickel based on prospects of future EV markets, but...
$QRC (0.57 CAD) 23/25 - ...rather for the steel production/consumption thesis as this is what currently dominates the Nickel price. An investment in a Nickel sulfide deposit would be nice, but again, would need to be about the ore body. Similar with Lithium brine projects...
