Monday, April 10, 2017

Metanor Has New Big Shareholders

Most recently Metanor Resources (MTO.V) completed a public placement with Eric Sprott acquiring a substantial stake in the company. Then the company announced it was going to close another private placement - this time addressed to Kirkland Lake (KL.TO) and Wexford Capital (a private investment company). If the last placement is successful, the company's shareholder base should look as follows:

source: Simple Digressions

It looks like Eric Sprott and Kirkland Lake, a mining company in which he holds a large stake, will jointly hold a 27.5% stake in Metanor. 

Then, assuming that Wexford is going to cooperate with these two investors, they should jointly control 40.2% of the company. In other words, it seems that Metanor is going to become a part of Mr. Sprott's empire.

On that news the investors replicating Mr. Sprott movements rushed to buy Metanor shares (look at the red circle on the right):


However, the problem is that now Metanor shares are trading at the EV/EBITDA multiple of 11.2 (calculated on a fully diluted basis). In other words, Mr. Sprott made these shares quire expensive now...

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