Integra Resources (ITR.V) is planning on capitalizing on American investor interest by uplisting from the OTC listing to the NYSE American market (previously known as NYSEMKT and AMEX), which will make the company’s shares tradeable for many more investors that either didn’t want to trade on the OTC or didn’t have access to that market. The listing on the NYSE American is a clear positive for Integra Resources as this will increase the visibility of the company and its Idaho-based project.
As part of the plan to list on the NYSE American, Integra has consolidated its shares on a 2.5 for one basis, leaving approximately 47.8M shares outstanding. It’s our understanding North Americans are reluctant towards share consolidations but what really matters is the value of the company and the market capitalization will remain unchanged. And while we understand a share consolidation may be bad news for grassroots exploration companies with weak shareholders, the market capitalization is the only thing that really matters in a story driven by fundamental value like Integra Resources. Whether the company has almost 120M shares out at C$2 or almost 48M shares at C$5 doesn’t matter as Integra’s share price will largely be determined by mineable and recoverable ounces in the ground and a P/NAV multiple.
Integra has restarted its drill campaign in the May and we hope to see initial assay results by the end of this month. ITR has been targeting high-grade zones at Florida Mountain and if the current optimism on the precious metals markets continues for the next few weeks, presenting high-grade gold results may further boost Integra’s share price. Idaho-focused Liberty Gold (LGD.TO) currently has a market cap of around C$500M and doesn’t even have a resource estimate (or PEA) yet, and it looks like everything is possible these days.
Disclosure: The author has a long position in Integra Resources. Integra is a sponsor of the website.