Olive Resource Capital Announces December 31, 2024 NAV of C$0.064 per Share
MWN-AI** Summary
Olive Resource Capital Inc. (TSXV: OC) announced an unaudited Net Asset Value (NAV) per share of C$0.064 for December 31, 2024, reflecting a modest decline of 1.3% from the previous month. This drop contrasts with broader market performance, as both the S&P/TSX Global Gold Index ETF and the TSXV Materials Index reported declines of 6.5% and 3.4%, respectively. As of the end of December, Olive’s share price stood at C$0.025, indicating substantial potential upside for investors.
The NAV breakdown reveals a diverse investment portfolio, with significant contributions coming from holdings in various resource-focused entities. Major assets include Black Sheep Income Corp., Omai Gold Mines Corp., and Guided Therapeutics Inc., together constituting a solid base for future performance. In total, Olive reported assets valued at C$6,770,245, with a per-share breakdown highlighting public and private equity investments as key components.
Chairman Derek Macpherson noted that December continued trends of U.S. dollar strength and declining commodity prices, but highlighted that traditionally, the January to May period tends to favor commodities. CEO Samuel Pelaez reaffirmed Olive’s strategy of reallocating capital into high-conviction resource names.
Although the company did not repurchase common shares during December's Normal Course Issuer Bid, it holds 3,030,000 common shares pending cancellation, and there are currently 109,174,709 shares outstanding. The announcement underscores Olive Resource Capital's adaptability in a challenging market environment, presenting an intriguing opportunity for investors amid a backdrop of fluctuating commodity prices and equity performance in the resource sector.
MWN-AI** Analysis
Olive Resource Capital's recent announcement detailing an unaudited NAV per share of C$0.064 for December 31, 2024, despite its trading price sitting at C$0.025, presents a compelling opportunity for investors. The considerable NAV discount indicates potential undervaluation and suggests that the market has not fully recognized Olive's asset backing.
The company's portfolio is diversified across public and private equity in the resource sector, with significant holdings in Omai Gold Mines, which has demonstrated notable resilience against broad market weakness. Despite a 1.3% decline in NAVPS in December—a month where most resource equities underperformed—Olive outperformed both the S&P/TSX Global Gold Index ETF and the TSXV Materials Index. This defensive performance is a testament to Olive's strategic asset selection and capital allocation, which have focused on higher conviction names in what is becoming a challenging market environment.
Furthermore, the headlines regarding U.S. dollar appreciation and commodity price weakness may provide short-term headwinds, but the typically strong performance of commodities from January to May could support a rebound in resource equities, including Olive's holdings. There is an opportunity for the share price to align more closely with the calculated NAV, should market conditions pivot favorably.
Additionally, management's continued confidence in reallocating capital towards fewer investments suggests a strategic focus that could yield higher returns. Investors should monitor Olive Resource Capital closely, considering the potential for valuation adjustments as seasonal dynamics play out in the commodity space. Given these factors, Olive might be a tactical buy for investors looking to capitalize on discrepancies between market prices and intrinsic value in the resource sector.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Toronto, Ontario--(Newsfile Corp. - January 10, 2025) - Olive Resource Capital Inc. (TSXV: OC) ("Olive" or the "Company") is pleased to provide investors an updated, unaudited Net Asset Value ("NAV") per share. Management has estimated the NAV of the Company at C$0.064 per share for December 31, 2024 (Table 1). At the end of December, the Company's price per share was C$0.025.
Table 1: Olive NAV Breakdown
| Name | Ticker | Value | Value per Share ($) |
| Black Sheep Income Corp. | Private | $1,265,936 | 0.012 |
| Omai Gold Mines Corp.(1) | OMG.v | $456,720 | 0.004 |
| Guided Therapeutics Inc. | Private | $455,922 | 0.004 |
| Arizona Sonoran Copper Co. Inc. | ASCU | $255,780 | 0.002 |
| Aurion Resources Ltd. | AU.v | $222,075 | 0.002 |
| Working Capital(2) and Liquid Investments(3) | $1,397,817 | 0.013 | |
| Other Public Equity Investments | $1,846,103 | 0.017 | |
| Other Private Equity Investments | $751,203 | 0.007 | |
| Other Merchant Banking Investments | $118,688 | 0.001 | |
| Total | $6,770,245 | 0.064 |
- Derek Macpherson, Executive Chairman of Olive Resource Capital is a Director of this issuer.
- Working Capital is calculated as cash, adjusted for management's estimate for known liabilities and is subject to change with future estimates or financial reports.
- Olive defines Liquid Investments as investments whose position can be liquidated in less than one day's average trading volume for that security.
Samuel Pelaez, the Company's President, CEO, CIO, and Director stated: "December was a continuation of the recent trend of U.S. dollar appreciation and commodity price weakness. More importantly, major resource equities continue to underperform their commodity references for the fourth month in a row. Looking ahead, the period between January and May is typically seasonally strong for the commodity complex. At Olive, we remain well deployed into both the larger and the junior resource space, and have continued to reallocate capital into fewer, higher conviction names."
Derek Macpherson, Executive Chairman stated: "Olive's NAVPS, declined modestly by 1.3% in December; however, we outperformed both the S&P/TSX Global Gold Index ETF down 6.5% and the TSXV Materials Index down 3.4%. Our outperformance was driven by Olive's position in Omai Gold Mines, which continues to outperform despite broader market weakness."
Normal Course Issuer Bid ("NCIB")
During the month of December, the Company did not repurchase common shares pursuant to its NCIB. As of the date of this release, the Company holds 3,030,000 common shares in treasury pending cancellation.
As of the date of this release Olive Resource Capital Inc. has 109,174,709 common shares outstanding.
Use of Non-GAAP Financial Measures:
This press release contains references to NAV or "net asset value per share" which is a non-GAAP financial measure. NAV is calculated as the value of total assets less the value of total liabilities divided by the total number of common shares outstanding as at a specific date. The term NAV does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies. There is no comparable GAAP financial measure presented in the Company's consolidated financial statements and thus no applicable quantitative reconciliation for such non-GAAP financial measure. The Company believes that the measure provides information useful to its shareholders in understanding the Company's performance, and may assist in the evaluation of the Company's business relative to that of its peers. This data is furnished to provide additional information and does not have any standardized meaning prescribed by GAAP. Accordingly, it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP, and is not necessarily indicative of other metrics presented in accordance with GAAP. Existing NAV of the Company is not necessarily predictive of the Company's future performance or the NAV of the Company as at any future date.
About Olive Resource Capital Inc.:
Olive is a resource-focused merchant bank and investment company with a portfolio of publicly listed and private securities. The Company's assets consist primarily of investments in natural resource companies in all stages of development.
For further information, please contact:
Derek Macpherson, Executive Chairman at derek@olive-resource.com or by phone at (416)294-6713 or Samuel Pelaez, President, CEO & CIO at sam@olive-resource.com or by phone at (202)677-8513. Olive's website is located at www.olive-resource.com.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange Inc. has in no way approved nor disapproved the information contained herein.
Cautionary Note Regarding Forward-Looking Statements: This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should", "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking statements.
This news release includes forward-looking statements that are subject to risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause the actual results of Olive to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. All statements contained in this news release, other than statements of historical fact, are to be considered forward-looking. Although Olive believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: past success or achievement does not guarantee future success; negative investment performance; downward market fluctuations; downward fluctuations in commodity prices and changes in the prices of commodities in general; uncertainties relating to the availability and costs of financing needed in the future; interest rate and exchange rate fluctuations; changes in economic and political conditions that could negatively affect certain commodity prices; an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains; and those risks set out in the Company's public documents filed on SEDAR. Accordingly, readers should not place undue reliance on forward-looking information. Olive does not undertake to update any forward-looking information except in accordance with applicable securities laws.
This commentary is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. The information provided in this recording has been obtained from sources believed to be reliable and is believed to be accurate at the time of publishing but we do not represent that it is accurate or complete and it should not be relied upon as such.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/236691
FAQ**
How does Olive Resource Capital Inc.'s updated NAV per share of C$0.064 compare to the performance of Norvista Capital Corp XTERF in the natural resource sector as of December 2024?
What strategies does Olive Resource Capital Inc. plan to implement in the coming months to enhance their competitive positioning against companies like Norvista Capital Corp XTERF?
Given the recent underperformance of resource equities, how might Olive Resource Capital Inc.'s investment approach differ from Norvista Capital Corp XTERF's investment strategy in the junior resource space?
In light of the anticipated strong seasonality for the commodity complex, how does Olive Resource Capital Inc. plan to capitalize on this compared to Norvista Capital Corp XTERF’s operations and investments?
**MWN-AI FAQ is based on asking OpenAI questions about Olive Resource Capital Inc. (TSXVC: OC:CC).
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