LONDON (Reuters) -Muddy Waters’ founder Carson Block said on Wednesday he has taken a long position in Canadian gold miner Snowline Gold Corp, marking a departure for the famed short seller.
Snowline Gold Corp is involved with potential projects Block believes are undervalued compared to the price of gold and how much of the valuable metal the sites can produce, Block told attendees at the Sohn Conference in London.
Describing public reports the junior miner has released, Block said that he believed the company had taken a conservative approach to its own growth projections.
“We think this project works at $1,800 gold and don’t see much downside risk here at the price,” said Block.
Gold is traing at around $4,070 an ounce, not far from recent record highs.
The junior gold miner is located in the Yukon, Canada with multiple projects including the Rogue Valley Deposit which is reckoned to hold around 8 million ounces of gold.
The company did not immediately respond to a request for comment.
A long position is a essentially a bet that an asset will rise in value.
(Reporting by Nell Mackenzie; Editing by Dhara Ranasinghe)
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