Home » Uncategorized » Shuffle up and deal: Recent trades

Lots of wheeling and dealing since my last portfolio update on May 18, 2018. All share prices are in local currency (OTC = USD, .AX = AUD, etc.).

Let’s jump right into it:

Adriatic Metals (ADT.AX) BOUGHT 35,000 shares at $0.31

ADT is an early stage drill play with immense promise. I explain my thoughts on buying this stock here.

Site visits took place late last week (Sprott and Canaccord were supposedly in attendance). We’re currently awaiting assays from BR-4-18, a step out from drill hole BR-3-18, as well as assays from the first drill hole from the JB Zone – BJB-1-18. Both should be released in a matter of days/weeks. Check out the maps of the project and the pending holes:

 

If the BJB zone proves to be connected to Rupice, and we have 1km+ strike, a 10-bagger from here is not outside the realm of possibility. If it’s not connected, no worries, still plenty of room for SP appreciation as we’re at a $75MM MC and $65MM FDEV at time of writing.

Sitting tight on this one.

Birimian Limited (BGS.AX) SOLD 4,000 shares at $0.525 and BOUGHT 3,100 shares at $0.53

The 4,000 shares sold had nothing to do with BGS but everything to do with a strong conviction in ADT and needing Australian dollars to buy shares of ADT ASAP. I feel lucky to have bought back at essentially at the same price. BGS recently released an Upgraded Mineral Resource at Goulamina of 103.2Mt @ 1.34% Li2O. Most folks were expecting somewhere in the range of 80-100Mt in this update. Certainly a surprise to the upside. BGS is currently in a trading halt pending release of their updated Pre-Feasibility Study. Assuming a positive PFS, I’m expecting a rerate in BGS as sentiment in the lithium space should come back at some point. This is a high quality project that is dirt cheap any way you slice it. As long as the underlying commodity doesn’t collapse, I believe this to be a no-brainer type investment.

Celsius Resources (CLA.AX) SOLD 16,000 shares at $0.20 and BOUGHT 9,000 shares at $0.195

Same story as BGS – the 16,000 shares sold were to fund ADT.AX purchases. Since I bought back in, CLA announced the Scoping Study will be delayed at least 8 weeks. The share price plummeted on this news to the 15 cent level. Not long ago I was extremely confident in this stock – but with the spot price of cobalt floundering, the recent delays, and the share price of Clean Teq (CLQ.AX) taking a 50% haircut (due to their recent DFS), I’m  second guessing myself here. It’s a solid project and one of the largest, highest grade sulphide projects in development, but I really don’t know if I should cut bait or double down here.

Taruga Gold (TAR.AX) SOLD 6,000 shares at 0.195

Again, same story. Sold to fund ADT purchases. The Klaus Eckhoff/AVZ.AX shitstorm going down at the same time I needed money for ADT made this sale a no-brainer. This was always a spec play and I’m happy to dump the rest of my shares at a 100%+ gain.

Aston Bay (BAY) SOLD 20,000 shares at 0.21 and BOUGHT 10,000 shares at 0.185

This is a case of me trying to scalp a few pennies off the market. I could sense the weakness/lack of interest – share price dipping on pathetic volumes, investor fatigue and frustration from lack of newsflow, and looming private placement shares coming free trading. I still love the story. Just a bit tired and lacks promotion. When drill results are imminent this thing should get rocking again. I hope to buy more shares in the mid-teens.

Fireweed Zinc (FWZ) SOLD 2,000 shares at $1.82

FWZ has been a CEO.CA favorite pretty much since its IPO in mid-2017. CEO Brandon Macdonald has done an amazing job being upfront and honest with investors on CEO.CA. His approach of engaging with investors and answering questions directly from the community is something all directors ought to take note of.

That said, I’m not in love with the economics of the project.

Initial thoughts on the PEA:

-Rampant use of “PRE TAX NPV” is spin. Why would I ever want to see a pre-tax value? It’s not relevant. I don’t care if peers are using it.
-CapEx of $404MM, post-tax NPV8 of $235MM, IRR of 17% at $1.10 zinc
-Numbers improve to post-tax NPV8 of $448, IRR of 24% at $1.21 zinc
-I don’t want to be playing the guessing/hoping game with the zinc spot price. I want a project that’s robust at $1.00 zinc.
-The stock is not expensive by any means, but I don’t see this project getting taken out any time soon. Not the type of play I want to be in at the moment.

The PEA was released after hours on May 23. After digesting the PEA I decided to sell the next day. I originally had my offer in at $2.11 ( a couple cents off the previous high). This would have undoubtedly been filled had I kept it in. Instead, I got greedy and went for a higher price, even though I wasn’t in love with the PEA and thought it would be sold. A $600 lesson learned.

 

Harvest Gold (HVG) BOUGHT 40,000 shares at $0.055

I’ll let Stateside do the talking:

 

Juggernaut Exploration (JUGR) BOUGHT 3,000 shares at $0.37 and SOLD 3,000 shares at $0.43

This was simply a trade on a promoted play in an uptrend. I guessed right and was able to get out with a couple hundred extra bucks. Cool.

Nemaska Lithium (NMX) BOUGHT 1,500 shares at $0.99 and SOLD 1,500 shares at $0.85

This was a failed trade. In light of their recent massive financing, I had hoped it would trade near financing level and then bounce back higher due to the signs of faith in the project. I’ve been wrong. Sentiment in the lithium space has been wiped out. There are a decent number of shorts in this stock. There are the obvious and valid questions of proof of concept and ramping up to nameplate capacity. I’m not adding and I’m not sticking around.

Orca Gold (ORG) BOUGHT 2,000 shares at $0.59

I’d recently sold out of Orca at $0.63. Of course, a few days later they announced a $22MM buy-in from Resoute Mining (a respected mid-tier), at a price of $0.67/share. This is a huge vote of confidence, full stop. A junior operating in Sudan, to finance at a premium in this environment, speaks volumes. I’m back in with a small starter position. I hope to add more in the mid-$0.50’s.

Vendetta Mining (VTT) BOUGHT 20,000 shares at $0.215

Separate post on Vendetta is coming. Bottomline is I still believe this is an extremely undervalued project that works at low lead/zinc prices. The market is bored with the story, and with the delayed resource update and PEA this is a buying opportunity. It’s been tough sledding but I believe patience will be rewarded with this one.

Cornerstone Capital Resources (CTXNF) SOLD 32,000 shares at $0.135

One of my biggest losses to date. I’ve been holding on for over a year now in hopes that Aguinaga results would revitalize the stock. Well, initial results from Aguinaga have been underwhelming and SolGold CEO Nick Mather has gone so far as to completely omit Aguinaga promo from the latest press release. Aguinaga had been a focal point and promised future riches for the past several years. I’m not going to hold this for who knows how many more years while they drill off the rest of their targets, all the while the market slowly realize Alpala, as it stands today, is borderline worthless without a $3.50+ copper price. Alpala + other targets may very well turn into an economic district play and become a monster one day. As of now, it’s a long way off from living up to its near billion dollar market cap. Cutting my losses. I’m out of this dog of a stock.

Erdene Resources (ERDCF) SOLD 6,500 shares at $0.40

The stock tanks for over a year from $1.40 to $0.32. Isn’t this convenient? Sold at a loss but glad to have this one off my books.

 

 

That’s all for now.

The above references an opinion and is for information purposes only. It is not intended to be investment advice. As always, do your own research and due diligence and seek a licensed professional for investment advice.

One thought on “Shuffle up and deal: Recent trades

  1. B says:

    First time visiting.
    Interesting commentaries.
    Thanks.

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