New CEO, New Ticker for A Royalty Pick

By Travis Johnson, Stock Gumshoe, February 26, 2013

Golden Predator’s name change has now gone through, and they’ve changed the ticker as well — the pink sheets ticker has so far remained the same at GPRXF, but the new ticker in Toronto is AMB to reflect the new name, Americas Bullion Royalty Corp.

Perhaps more importantly, they’ve also made a pretty bold new hire that might well catch the market’s attention — they have appointed Paul Zink to take over as CEO on March 1, and that’s a name that most royalty enthusiasts know pretty well. Zink ran International Royalty Corp for a couple years, a stock that became subject of a bidding war that was won by Royal Gold (RGLD), and since that takeover has been running the royalties business at Eurasian Minerals. It appears he’s game to build yet another royalty company, and Americas Bullion is giving him the platform to do so.

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It’s still very early days to make any kind of assessment of how this stock should be valued, since they have really just a few royalties that are anywhere near possibly generating revenue, but this is a solid statement that they really are going to build the royalty portfolio. Of course, that sword comes with a second edge, too, as any push to grow the portfolio and company is going to have to start with raising money — it will be at least two years before they have meaningful cash flow to reinvest in new royalties. I am continuing to hold my Americas Bullion/Golden Predator shares and I’m watching to see how it turns out, particularly as regards the market’s valuation of their spinoff of the exploration assets and the creation of a “pure” royalty stock sometime soon, but I will probably wait to see how the market responds to their first fundraising, which may be very dilutive if they don’t have any immediate royalty acquisitions in the pipeline when they sell new shares, to add to my position.

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