Analyst Ideas of the Week

Analyst Ideas of the Week

MIC Raises $27M Ahead of Q3 Results

October 21, 2019



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Special Situations

Company Name: Ticker Symbol Current Share FRC Fair Value Date of PR:

Price:

Estimate:

Atrium

TSX: AI

$13.58

$13.70

Oct-18-2019

Mortgage

Investment

Corporation

PR Content

FRC Opinion

Closed a $27 million financing at $13.40 per Positive ? The company is expected to release its

share.

Q3 results on October 31, 2019. The recent

financing, we believe, will likely result in a

mortgage portfolio higher than $725 million (our

current estimate) by end of the year. We are

expecting a strong Q3. Q2 revenues were up 14%

YoY to $17 million, and net income was up 12%

YoY to $10 million (EPS: $0.25) - both were

quarterly records. Our 2019 total dividend

forecast is $0.98 per share, implying a yield of

7.2%.

Company Name: Ticker Symbol Current Share FRC Fair Value Date of PR:

Price:

Estimate:

MLI Marble

CSE: MRBL $0.22

$0.47

October 17, 2019

Lending Inc.

PR Content

FRC Opinion

Announced a partnership with Vancouver- Positive ? We are pleased to see the company

based company Theory+Practice ("TAP") to engage with a technology company to enhance its

implement strategies towards an AI and credit decision-making process and improve

machine learning platform. The outcome of customer experience. Contingent on a successful

this partnership is to help enhance Marbles' outcome, we believe this would aid the company

credit decision-making process and improve in selecting lower-risk clients to offer its loan

customer experience through data science and product to (thereby driving revenues of the

innovative technology. TAP is a private company).

company that offers a range of services, such

as: data analysis and strategies, automated and

integrated AI and behavioural economics.

?2019 Fundamental Research Corp. "15+ Years of Bringing Undiscovered Investment Opportunities to the Forefront"

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

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Mining / Exploration

Company Name: Ticker Symbol Current Share FRC Fair Value Date of PR:

Price:

Estimate:

Gran Colombia TSX:GCM

$4.90

$6.63

Oct-16-2019

Gold Corp.

Oct-21-2019

PR Content

FRC Opinion

Released assay results from a 25-diamond drill Positive ? In addition to these positive results, we

hole underground in-fill program, as well as are eagerly awaiting the company's Q3 results,

15-diamond drill hole exploration program, at which are expected to be released on November

the Segovia operations. Of the 25-hole 14, 2019. In the first nine months of 2019, the

program, six holes were at Providencia, 12 company had produced 175 Koz gold, up 7%

were at Sandra K, and seven were at El YoY. GCM had beat our expectations in Q2 when

Silencio. Note that Segovia's current mining it reported a 13% YoY increase in revenues to

operations are from these three underground US$78 million. EBITDA was up 27% YoY to

mines ? which include three of the known 24 US$33 million. Our 2019 production forecast

veins in the project area. The 15-hole (Segovia + Marmato) is 235 Koz, with a net profit

exploration program included five at forecast of US$39 million (EPS: US$0.80).

Providencia, six at El Silencio, and four at the

new Chumeca vein. A key highlight of the

results is that the first few holes in the

Chumeca vein indicate that it has potential to

be a main vein. The results also indicate

potential for resource growth at Sandra K.

GCM is planning to conduct 70,000 m of

drilling at Segovia over the next 18 months.

?2019 Fundamental Research Corp. "15+ Years of Bringing Undiscovered Investment Opportunities to the Forefront"

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

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Company Name: Ticker Symbol Current Share FRC Fair Value Date of PR:

Price:

Estimate:

Sirios Resources TSXV: SOI $0.175

$0.44

Oct-21-2019

Inc.

PR Content

FRC Opinion

Completed a $1.48 million financing at $0.20 Positive ? The company is currently working on

per unit. More importantly, Newmont a maiden resource estimate on its flagship

Goldcorp (NYSE: NEM) subscribed to $1 Cheechoo gold project located in Eeyou Istchee

million and has increased its ownership from James Bay, Quebec. As discussed in our initiating

15.9% to 19.9%.

report, our preliminary speculative estimate on

Cheechoo is 1.27 Moz of contained gold. This is

based on a 500 m x 500 m area, a conservative

depth of 200 m (the company has drilled up to

300 m), and an average grade of 0.6 gpt gold. We

believe an attractive initial resource will open

doors to a number of possible M&A

opportunities.

Company Name: Ticker Symbol Current Share FRC Fair Value Date of PR:

Price:

Estimate:

Fura Gems Inc. TSXV: FURA $0.165

$1.17

Oct-17-2019

PR Content

FRC Opinion

Completed a previously announced acquisition Positive ? We were very pleased to the see the

of a ruby prospecting licence in the Montepuez closing of this acquisition especially because the

district in Mozambique. The company is company had originally announced its plans in

currently in the process of completing the 2018, and the delays were concerning. The recent

purchase of interests in three additional ruby financing at extremely attractive terms is also

prospecting licences / concessions in encouraging. Note that Fura is ramping up

Mozambique. Fura also recently closed the production at its 76% owned Coscuez emerald

first tranche ($27 million) of a $33 million mine (one of the world's most significant emerald

financing. The financing was done at a 52% mines).

premium to the current share price. No free

warrants were issued.

?2019 Fundamental Research Corp. "15+ Years of Bringing Undiscovered Investment Opportunities to the Forefront"

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

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Company Name: Ticker Symbol Current Share FRC Fair Value Date of PR:

Price:

Estimate:

Quaterra

TSXV: QTA $0.065

$0.49

Oct-21-2019

Resources Inc.

PR Content

FRC Opinion

Announced results of a Sequential Copper Positive ? These studies likely indicate potential

("Seq-Cu") analysis at its MacArthur open-pit, for improvement in the project's net asset value.

oxide-leach copper project in the Yerington The 2012 PEA on the oxide portion of MacArthur

Copper District, Nevada. Seq-Cu basically was based on an 18 year / 41, 000 tpd (ore) open-

allows to determine the amount of leachable pit mining operation of the oxide resource,

copper in drill samples. The study showed that followed by a ROM (run-of-mine) heap leach

actual recoveries are likely to be higher than operation, and conventional solvent extraction /

the assumptions used in a 2012 PEA. The electrowinning (SX/EW). The after-tax NPV at

company is further evaluating results of the 8% was estimated at US$202 million, with an

Seq-Cu work for potential use in the upcoming after-tax IRR of 24.2%. The initial CAPEX was

PFS on the MacArthur deposit in 2020.

estimated to be US$233 million. Another positive

development is that Nevada Copper (TSX:

NCU), whose Pumpkin Hollow project is located

3 km from QTA's assets, is targeting to

commence production shortly.

Company Name: Ticker Symbol Current Share FRC Fair Value Date of PR:

Price:

Estimate:

Laurion Mineral TSXV: LME $0.16

$0.33

Oct-18-2019

Exploration Inc.

PR Content

FRC Opinion

Announced results of channel sampling at Neutral to Positive ? These studies, which are

recently discovered SJ sulphides at the part of a three-stage / 18-month exploration

Ishkoday project. Best results included:

program, are expected to provide the company

with information to initiate diamond drilling

? 1.11m @ 4.97 g/t gold, 8.00 g/t silver, across a 5 km by 1 km target at Ishkoday.

1.35% zinc, 0.20% copper, 0.04% lead

Management expects drilling to commence later

? 1.06m @ 0.18 g/t gold, 45.69 g/t silver, this year or early 2020.

25.00% zinc, 0.03% copper, 6.21% lead

? 1.55m @ 0.72 g/t gold, 5.10 g/t silver,

2.19% zinc, 0.08% copper, 0.24% lead

?2019 Fundamental Research Corp. "15+ Years of Bringing Undiscovered Investment Opportunities to the Forefront"

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

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