Golden Share Resources Analysis     

I am approaching this as a developing story as that is the best way to examine it. The story began four weeks ago when a professional investor in Montreal suggested that I meet with a small cap mineral company. It was definitely worth the time. This analysis is a preliminary fundamental assessment of “Golden Share Resources” attempting to evaluate it at an early stage. My rationale is to determine if it justifies research coverage or if it is worth monitoring.  

                                                                                                                                                                                                                                                                               This is not a recommendation but rather a summary of Golden Share Resources including its’ fundamentals, projects and some significant information that may contribute to an investment decision. I strongly suggest that  this is an early stage developmental situation and should not be chased or pushed up in price. 

 

     Golden Share  Resources, symbol “GSH” TSX Venture, is a small cap developmental and exploration company with a prime focus on a “vanadium based  battery” which may offer significant commercial potential in electric storage and  energy production. While the company has two potential gold projects in Ontario, we find the vanadium based  battery project to be particularly interesting.    

                                                                What is the new Vanadium battery technology?                                                                                         We must understand that this is a new development in vanadium battery technology. It employs vanadium instead of lead or lithium. Today the scientists are testing to confirm that the battery can function minimally for a full decade. One cannot yet confirm that it can meet its expectations, but I believe that it can, at least in theory. 

 

Focus? Golden Share is continually advancing its’ vanadium redox flow batteries suitable for utility-scale stationary power, while researching and developing a new vanadium based solid state battery technology for other uses.

 

   Golden Share’s “vanadium battery” project should still be considered as a developing “work in process” since further information will be forthcoming as specific performance levels are achieved. The testing has been done at a laboratory in the United States. While all the test results thus far have been successful and positive, further tests still have to be completed.    

 

   *Results and when? Golden Share offers no timetable yet. Again we believe that the vanadium based battery storage could have huge market implications for energy storage. Why? If Golden Share’s vanadium based battery can prove that it can store energy in their vanadium battery for prolonged periods, it could have a major impact.

 

The most important ingredient for success in a small cap company is the management. I made it a point to meet with Golden Share management and I am impressed and satisfied. President Nick Zeng is directing the company with a strong management team. I also confirmed that administration costs, salaries and other expenses are among the lowest levels that I have seen. Control of expenses and costs do matter as early stages in a company’s life will determine its success. A small company cannot afford any waste before sales commence.  Aside from Mr. Zeng’s vigilance in overseeing  all costs and spending, he is  well aware of the predatory “wolves” offering advice and direction at very high cost with little success.  

 

                                                                                 Management’s Plan                                                                                                                            CEO Nick Zeng’s focus is to enhance shareholder value through the commercial success of Golden Share. He is aware that for a new company, a fast way to shake investor confidence and lose support is to have a stock spike up in price and later cascade back down. Such price moves leave shareholders frustrated and angry with no benefit.   

   Experienced and value oriented investors understand that a new company requires sufficient time. We cannot determine if all Golden Shares‘ stockholders understand what has already been accomplished and what must  transpire before stock price appreciation occurs.

 

                                                                              Golden Share Stock Ownership                                                                                                       Management currently owns over 29% of Golden Share stock. Other investors that we would describe as “friendlies” or “allies” own approximately 17%. We consider it essential that the officers of a small capitalization company are substantial shareholders of their companies and that their focus is on the performance of their companies’ stock’s price performances not on their salaries. It is evident that the focus of Golden Share management is the company’s success and the price performance of the company’s stock.

 

                                                                                         Debt and Cash Position                                                                                                 Golden Share has no debt with no intention of putting the company into a debt position. When funds were needed, management has been able to obtain the necessary funding. Management has also shown its ability to raise capital from its shareholders and keep a tight rein on spending. This availability to the capital markets is essential for a small mining company.

 

Over the last two years the price of Golden Share stock has ranged from a low at .09 cents to the high of .36 cents. It has recently held a tight price range and in my opinion it would be very difficult to purchase shares in any large size.

 

If the Vanadium battery storage testing success continues, I do not believe that Golden Shares’ stock price will stay at a low price level. But investors must realize that it may be an 18 month to 24 month scenario. Golden Share is not an investment for those with short term time horizons. Keep in mind that we are discussing science and required factual results-not expectations.                    

                                                                                          Conclusion

While still in the early speculative stage, Golden Share Resources merits attention and we will  hopefully monitor it on the Montrealananlyst.com & Canadianmineanalysis.com                  April 14, 2018                                                                               

                       Thank you, K.C. Grainger and  Bob Pellerin