Why Palisades Goldcorp's Bullion Bet and Strategic Moves Signal a Rare Contrarian Opportunity

The junior mining sector has been battered by macroeconomic headwinds, but Palisades Goldcorp (TSXV: PALI) is quietly positioning itself to capitalize on a commodity rebound. Recent moves by the company—including a strategic physical bullion purchase, accretive financing, and insider alignment—paint a compelling picture of a team with skin in the game. Investors ignoring these signals may be missing a generational buying opportunity in a deeply undervalued resource equity.

Insider Confidence in Action: The Bullion Purchase

On February 28, 2025, Palisades allocated C$500,000 to physical gold, silver, and platinum bullion—a decision CEO Collin Kettell framed as a “direct ownership play” to sidestep counterparty risks. The split (30% gold, 35% silver, 35% platinum) reflects a balanced hedge against inflation and systemic instability. Crucially, this was not a speculative move: the bullion is stored in Singapore via Silver Bullion Pte Ltd., a firm founded by director Gregor Gregersen, which offers the company preferential pricing.

While the transaction itself isn't an insider buy, Kettell's vocal advocacy underscores his belief in the strategy. The CEO's February 6, 2025, participation in a corporate reorganization (likely tied to a merger or acquisition) further signals alignment with shareholder interests. With Kettell holding 15.8 million shares as of February—a position he hasn't diluted—the message is clear: he's all-in on Palisades' future.

Accretive Financing and Undervalued Equity

In April 2025, Palisades closed a US$6 million non-brokered private placement of convertible notes at CAD 1.50 per share, secured by its 21.63% stake in New Found Gold Corp (NFG). This move is a masterclass in capital efficiency:
- No dilution: The notes, convertible at a price above current trading levels (PALI closed at $1.50 on May 23), ensures accretive share count management.
- Strategic leverage: The collateral (NFG shares) highlights Palisades' confidence in its existing asset base.

The disconnect between Palisades' undervalued stock and its asset-rich balance sheet is glaring. At $1.50, the market is pricing PALI at a 50% discount to its NFG stake alone (assuming NFG's current valuation). Factor in the physical bullion and its operational cash flow, and this equity is a screaming contrarian play.

The Contrarian Edge: Timing the Commodity Cycle

The company's dual focus—physical bullion ownership and strategic mineral assets—positions it to thrive as commodities recover. Gold is trading near 2024 lows, while platinum-group metals (PGMs) face supply shortages due to geopolitical risks in South Africa. Palisades' physical holdings act as a natural price lever, while its NFG stake gives it exposure to a world-class gold project in Newfoundland.

Kettell's leadership further reduces risk: his track record includes turning around underperforming assets, and his recent shift to focus solely on the CEO role (after stepping down from the board on May 20) signals a singular dedication to execution.

Why Act Now?

• Low valuation risk: The stock is trading at a historic discount to its asset value.
• Debt discipline: The convertible notes are non-dilutive and priced optimally.
• Insider credibility: Kettell's ownership and strategic moves align with long-term shareholder value.

The market has overlooked Palisades' prudent capital allocation and asset-rich profile. As inflation expectations rise and commodity cycles turn, this could be one of the last chances to buy a resource play at a 50% discount to intrinsic value.

Final Call: Buy PALI Before the Crowd Awakens

The combination of physical bullion insulation, accretive financing, and CEO-aligned governance makes Palisades Goldcorp a rare junior mining stock worth owning. With the stock trading at $1.50—a price below its own convertible note strike—this is a risk-reward asymmetry that won't last. Investors seeking exposure to a recovery in precious metals and disciplined mining equity should act now before the broader market catches on.

Disclosure: The author holds no position in Palisades Goldcorp and writes purely for informational purposes.