Initiating coverage with an Outperform rating. Garibaldi Resources offers exposure to a base and precious metals exploration company with over 180 square kilometers of mining claims in the mineral rich Eskay Camp in northwest British Columbia. The company’s flagship E&L Nickel Mountain project represents the first magmatic nickel-copper-cobalt-PGE-rich massive sulphide system identified in the Eskay Camp. The company is advancing the Casper discovery, a gold vein that is 12 kilometers northwest of Nickel Mountain. Garibaldi also has a promising portfolio of base and precious metal focused projects in Mexico. Because the drilling season in British Columbia is short due to weather constraints, the properties in Mexico enable the company to remain engaged year-round.Potential value creation opportunities. While the properties in Mexico enhance the diversity of Garibaldi's asset portfolio in terms of geography and metals mix, they may offer a source of value creation through sale, joint venture, or option agreements. We think management may consider streamlining its holdings and restructure its base and precious metals claims in British Columbia into two separate companies to enhance investor appeal and allow each business to fund projects on a stand-alone basis. Polymetallic stories are often underappreciated given that metals investors often focus on base or precious metals, with a new group emerging that is focused on battery and clean energy metals.Exploration program yielding significant discoveries. A total of 96 drill holes have been completed at E&L Nickel Mountain since 2017 and 4 drill holes were completed at Casper in 2020. Drilling results from E&L Nickel Mountain have affirmed high grades of nickel, copper, cobalt and platinum group elements. Drilling at Casper confirmed at least three discrete mineralized quartz veins and all four drill holes intercepted gold mineralization.Management alignment with shareholders. Mr. Steve Regoci, CEO, has over 20 years of experience financing junior exploration companies, while the company’s board of directors is comprised of individuals who have distinguished themselves in various disciplines. The management and directors of the company own roughly 12% of the common stock outstanding which underscores their alignment with shareholders. Read More >>