Wednesday, November 16, 2011
"Q: How difficult is it to raise money as a contrarian investor?

A: It’s always difficult. We get a forestry asset, and no matter how good the deal is, people look at forestry, and assume nobody makes money there, and they say 'I’m out.' So the business can be solid, the people can be solid, and the reputation can be solid, and it’s still difficult. The cost of capital is always at the wrong end of the curve.

But take the Thurso mill. We paid $1.2-million. The insurance replacement value alone was $851-million. The scrap value is worth more than that. It came with 320 hectares of land on the Ottawa river. Again, the land is worth more than that. People say it’s risky. We don’t think so."

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