"The company holds assets that are of significantly greater value than the market cap of this company. For example, its equity holdings of three companies alone in which it owns shares are worth more than its market cap as outlined above. But that’s not all. In addition to that, the company holds property and royalty interests in many projects, the most advanced of which it holds is a 10% equity interest in Champion Iron Mines Ltd. plus a 1.5% NSR."

"For those of you who may have viewed Altius as too expensive for your taste when I recommended it a few months ago at a price 35% lower than now, FNC appears to offer a penny play that may be as undervalued or even more so than Altius. I consider FNC to be a “baby Altius.” As such, it is worth watching its progress."

"The current equity holdings alone are worth approximately $17.5 million, compared to the company’s recent market cap of around $14 million. As exploration and development continues, more value may well be added going forward. Suffice it to say, based on equity holdings alone in these three companies, with zero value given for future cash flows from royalties or the many other properties the company owns that it is in the process of farming out to other firms, this stock is currently undervalued."

Based on: CHAMPION IRON MINES LIMITED (CHM 15.025 million @ $0.35); ARGEX TITANIUM INC (RGX 6 million @$0.82);LAMELEE IRON ORE LTD (TSX.V-LIR 43 million @ $0.17)

"THE BOTTOM LINE – This stock on the basis of its holdings in Champion Iron Mines, Argex Titanium, and Lamelee Iron Ore alone, is undervalued by approximately 15%. But if you allow value for future cash flows from royalties and the many other holdings this company has in eastern Canada, even in a continuing lackluster market like the current one, a case could be easily made for a double in this stock from its current price. Longer term as production nears and risk is reduced, it is not unrealistic to anticipate much higher valuations. Perhaps upwards to a four-fold increase over current values could be enjoyed by shareholders as the market begins to discount very sizeable future royalty cash flows. My only reservation in not adding this stock to my list now is my relatively bearish macroeconomic view on the global economy. That is why I favor gold and silver shares over base metal and industrial metal companies. If you disagree with that outlook or if you think my view is wrong, you may want to consider adding these undervalued shares into your portfolio simply as portfolio insurance through diversification. As for now, I will keep a watchful eye on this company, which under less stressful times would without doubt make it on my list as a buy."

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