Elysee Development (ELC.V) reported its financial results for the first nine months of its financial year (which ends in November). The company has earned a total of C$358,000 in those first three quarters, which means it lost approximately C$185,000 in the third quarter, which represents less than 1 cent per share and less than 2% of the NAV. That’s not a bad result considering Focus Ventures’ (FCV.V) continued to disappoint whilst NioCorp Developments (NB.V) also lost some ground.
During the quarter, Elysee participated in new financings as it purchased stock in Jericho Oil (JCO.V) which recently acquired a STACK play in Oklahoma from Anadarko Petroleum (APC) and raised more cash from very strong (new and old) shareholders, Wealth Minerals (WML.V) and HIVE Blockchain Technologies which came out of the gate really well and is now trading at C$1.73 per share. Meanwhile, Elysee has increased its position in ScoZinc (SZM.V) once again, perhaps a good move, given the recent strength in the zinc prices and the company’s recent renewal of the Industrial Approval Permit for a new period of 10 years.
Elysee’s top-5 positions (as of at the end of August) were TerraX Minerals (TXR.V), IBC Advanced Alloys (IB.V), Polymet Mining (PLM, POM.TO), Largo Resources (LGO.TO) and Kirkland Lake Gold (KL.TO, KL). Largo allows Elysee to capitalize on the recent strength of the Vanadium price whilst Kirkland Lake offers indirect exposure to the recent hype surrounding Novo Resources (NVO.V).
Elysee has already paid a C$0.01 dividend in July, but it’s not certain shareholders will receive a second dividend as the dividend depends on the company’s net income. Shareholders have been spoiled in the past, but we wouldn’t mind seeing Elysee increasing its cash position (C$735,000 as of at the end of June) again to make sure it can immediately act on new opportunities.