Far East Capital Newsletter
Castile Resources. It is rare to find such good fundamental value
30 Apr 2022

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Castile Resources. It is rare to find such good fundamental value

Castile Resources (CST) is a great example of a company with a sound development project that has been largely overlooked by the market. It is hard to believe that the market capitalisation is only $37m, much less than so many highly speculative juniors, given its solid resource base, the management quality and the upside from exploration programs. Maybe it doesn't appeal to hot traders but fundamental investors should be having a serious look.

There is no point in having a good project if it doesn't also have good management. There are many examples of inept management destroying a company even when the assets were high quality. Companies with successful, experienced management teams tend to attract a share price premium in the market but anomalously, this hasn't happened yet with CST.

Here, we have one of the icons of the Australian gold sector as chairman - Peter Cooke. The Managing Director is Mark Hepburn who has a successful career in the capital markets rather than a technical background, but in my opinion this is a positive. You need savvey corporate management to ensure commercial success. 

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