The Investment Doctor
Long/short equity, value, debt, base metals

EURO Resources Is Overvalued At The Current Gold Price And Could Be A Good Short Candidate

Introduction

In this article, I'll have a closer look at EURO Resources SA (OTCPK:EROFF), which is a royalty company holding two royalties on gold projects in South America (Suriname and French Guiana). I will start with a brief overview of the two South American projects where after I will calculate the Net Present Value of both royalties. This will be extrapolated to calculate the total value of the company and I will also explain the risks about investing in EURO Resources. This will result in my investment thesis at the end of this article.

As the trading volume on the US exchanges is very limited (as its main shareholder is IAMGOLD (NYSE:IAG) which owns 86% of...

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