Just a quick update with some notes on the portfolio actions these last weeks…
- Bersele Minerals (BME)
- FD Market Cap: US$68 M.
- Project located in tier 1 jursidiction (Sweden).
- JV with Agnico-Eagle.
- Multiple drills turning 24/7.
- I think the next resource update will be a huge upgrade.
- Core position.
- I met management in Zurich and was convinced that Barsele was undervalued given the potential scale of the project coupled with the tier 1 jurisdiction etc (Good Risk/Reward).
- Personal belief is that this should be a double in 6 months even if gold is stuck at $1250.
- Savary Gold (SCA)
- Small starter position (bottom fishing).
- Need more due diligence.
- Wesdome Gold Mines (WDO)
- Enterprise value: US$187 M.
- 4 projects in Canada.
- Very high growth potential (both production and exploration).
- I think the market is pricing in a fraction of the potential (and rather probable) upside.
- Core position.
- Azimut Exploration (AZM)
- Micro cap “prospect generator” with a lot of highly interesting prospects.
- Check out LucTenHave’s comments on CEO.ca for additional details.
- Low risk, potentially high reward situation even though they do not own 100% of their flagship projects.
- The only prospect generator that I own currently.
Additions to existing positions
- Otis Gold (OOO)
- Market cap: US$26 M.
- Agnico-Eagle is a strategic shareholder.
- Insiders have been buying a lot for quite some time.
- The blue sky drill targets might take some time, but I think this is a pretty easy double until then.
- Delayed resource update will probably increase resources a LOT.
- I see the price decline as being brought on by impatience and tax loss selling (ergo, I think time “alpha” time-arbitrage is present).
- Silver Bull Resources (SVB)
- Large oxide deposit that they get now value for (kind of an optionality play).
- Recently got very nice results from their UG sulphide targets.
- Semi high risk/high reward story given that their oxises would certainly be economical at higher prices and that they might start to prove up a Ag/Pb/Zn deposit on top of their outlined oxide deposit.
Note: Always do you own due diligence! This is a highly risky/volatile sector and you are responsible for your own decisions. I believe that high conviction (or lack of) leads to more rational investment decisions, so make sure to go through as much material as you possibly can before you consider buying shares.
There are a bunch of additional companies that I am currently reviewing and a few that I have already bought starter positions in. I write more about that next week probably.
Horseman’s portfolio (long only) performance YTD: +42.65%
Horseman’s portfolio performance (long only) since 2016-01-01: +224.92%
GDXJ: performance YTD: -0.44%
GDXJ performance since 2016-01-01: +63.85%
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