Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Prezi logo
Log in
Loading…

Bre-X minerals Ltd.

MD

Marco D'Arrigo

Transcript

Bre-X minerals Ltd.

Case Context

  • Bre-X was founded in 1989

  • Founder and CEO David Walsh

  • Based in Calgary, Canada

  • Small mining projects

  • Penny stock worth around 20c

Conclusion and sum up

The biggest stock scandal

  • Bre-X was a company that at its peak was evaluated at 6 billion dollars

  • They raised 1.2 billion dollars

  • The victims included pension funds

  • They committed fraud, by tampering with the samples that were being tested

  • Through their fraud, the mining industry got new restrictions

https://youtu.be/3pZ_JPuLI84

Case summary

Shorting the stock

  • John Felderhof suggests that they should open a new branch in Indonesia, following the advice of Michael de Guzman

  • Michael de Guzman then planted small amounts of gold to keep the project running (1993-1997)

  • Bre-X then raised 1.2 Billion CAD in investments

  • Finally, a company called Freeport McMoran did their due dilligent and exposed the company's fraud (1997)

  • They filed for bankruptcy in 1998

What was the effect on the real world?

Sources

  • A big part of the stock downfall was the shorting of the stock

  • After Michael de guzmans death, many people bet on the downfall of the stock

  • This led to the stock further going down

  • However, this also turned out to be very profitable
  • After this scandal measures were resticted in the mining industry

  • Stricter regulations, when reporting mineral resources

  • Investors also learned a very important lesson

  • Due dilligence was emphasized strongly

https://www.visualcapitalist.com/bre-x-scandal-history-timeline/

https://www.economist.com/business/1997/04/03/losing-the-midas-touch

https://www.bbc.com/news/world-us-canada-68987824

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=147690

https://www.cliffsnotes.com/tutors-problems/Project-Management/52500744--CASE-STUDY-The-BRE-X/

https://www.investopedia.com/terms/b/bre-x.asp

CBC podcast – The six-billion-dollar gold scam

Choose a template

Constellations (AI Assisted)

Illuminate your ideas with our captivating Constellations Prezi AI-assisted presentation template, merging celestial elegance with professional design to elevate your content and guide your audience through a stellar visual experience.

Sheet Music (AI Assisted)

Elevate your presentations with our Sheet Music Prezi AI-assisted presentation template, seamlessly blending aesthetics and functionality for a harmonious visual experience.

Hiking Journey (AI Assisted)

Elevate your presentations with our immersive Hiking Journey Prezi AI-assisted presentation template, meticulously crafted to showcase the beauty of your adventures, from scenic trails to breathtaking landscapes, providing a visually compelling experience for every outdoor enthusiast.

Presentations from around the world

Siser® Social Media & Marketing Pack

mattia manfron

3. AI_정의

호재 손

Creative Report

Gabriele Roncoroni

Learn more about creating dynamic, engaging presentations with Prezi
Why Prezi is better