Business
Elysee Provides Corporate Update for the First Quarter of 2021
Vancouver, British Columbia--(Newsfile Corp. - April 6, 2021) - Elysee Development Corp. (TSX...
About this update from Elysee Development Corp
[{"type":"text","content":"Elysee Provides Corporate Update for the First Quarter of 2021Vancouver, British Columbia--(Newsfile Corp. - April 6, 2021) - Elysee Development Corp. (TSXV: ELC) is pleased to provide an update of its recent investment activities.Guido Cloetens, the Chairman and CEO of Elysee, stated: \"Despite unfavorable conditions for our core investments (precious metals miners) I am very pleased that we were able to realize yet another positive result in Q1 2021. In the second half of 2020 we reduced our exposure to precious metals and focused more on industrial metals. This strategy has paid off. On March 31, we had approximately $4 million in cash after paying out a dividend of 3 cents per share earlier in the month.\"During the first three months of 2021 gold experienced its worst quarterly performance since Q4 of 2016. The gold price declined by almost $200 per ounce (-10%) during the first quarter of 2021. As a result, the Global Junior Gold Miners index (GDXJ) was down almost 17% in Q1 2021. This decline also impacted Elysee's portfolio. The unrealized loss on the gold miners was more than offset, however, by the strong performance of our non-precious metal investments and the cash offers made for two gold miners we have in our portfolio. During the first three months of 2021, Elysee continued to realize profits from a number of its marketable securities. These include:- Nextsource Materials Inc. which announced a financing by Sir Mick Davis, former CEO of Xstrata plc and a former top executive at BHP Billiton. After the announcement the stock rose from less than $0.10 per share at the start of the year to over $0.50 per share in February. We sold shares and exercised our warrants, realizing a very significant gain during the quarter while still holding a meaningful position. Nextsource is in the process of building a graphite mine in Madagascar. - Battle North Gold Corporation, one of our largest holdings, received a cash offer of $2.65 per share from Evolution Mining. Our average cost is approximately $1.20 per share.- Gold miner TMAC Resources Inc. was acquired by Agnico Eagle Mines for $2.20 per share, a 66% premium compared to the price before the announcement. - Oroco Resources Corp., another one of our largest positions, continued its strong performance in Q1 2021. We exercised some of our warrants and realized significant pro...