Interview with Gorden Glenn, President and CEO of Intercontinental Gold and Metals (TSX-V: ICAU)
Intercontinental Gold and Metals is a gold trading business with an operation in Bolivia. Intercontinental Gold and Metals tried to give investors exposure to the exciting upside of gold/precious metals investment, with none of the risk associated with the typical exploration, development and operation in the mining sector. It seems to us this is a fairly smartly positioned play, albeit at a very early stage. Glenn is right in saying that capital for high-risk ventures, like explorational drilling, has become sparser in recent years. This reminds us of some of the royalties, tailings and recycling companies we have interviewed. Mining is mining, but what if investors could access most of the returns of this field with less risk?
Intercontinental Gold and Metals is a relatively small play, with a market cap of CA$5.95M and a share price of CA$0.33.
Glenn himself has extensive economic geology experience at "medium-sized" companies, in addition to vast gold market experience. The remainder of the team has a similar level of experience, with the company director, John Anderson, having over 20 years of capital markets and experience on national and international exchanges such as the TSX, NYSE, NASDAQ, London AIM and Swiss Stock Exchange.
How exactly does a trading business work? Intercontinental Gold and Metals procure and stock various commodities in a variety of forms (and grades) to provide the resource to customer specifications. Intercontinental Gold and Metals can also source stock via its global supply network. Key to the business model is Intercontinental Gold and Metals' relationship with high-quality suppliers, advisors and contacts throughout the world. Intercontinental Gold and Metals services both individuals and businesses, providing a wide range of commodities. The company currently has a gold bullion refining capacity of over 5 tonnes per annum. Intercontinental Gold and Metals takes around a 1% gross margin on trades. Glenn claims this is the industry standard.
How exactly will Intercontinental Gold and Metals scale up to boost the share price for investors? Glenn thinks the "show me, grow me" money given to Intercontinental Gold and Metals by investors proves interest, and thinks the positive financial results of the company will incentivise more investment, more growth and more mining companies coming to his door rather than the other way around. Glenn then touches on the size of the Bolivian/Latin American export market. Glenn sees the company's good legal standing and ability to get deals done as reasons to invest.
Company page: https://intercontinentalgold.com/
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