(I am currently on vacation, which is the reason for a dip in activity on twitter as well as on this blog.)

Market discussion

As many know miners and metals have had some really good days lately. Some stocks which had been extremely bombed out are up anything from 50%-100%.

I would personally not chase the many poorly run companies who have been doing very well lately. Sure, some might have been undervalued, but most have had low market caps because they are simply poorly run and haven’t created much internal value (if at all).

With the above said, there is of course nothing wrong to take a small trading position in almost any crappy junior around, to front run broad public participation. Just remember why you hold it because as soon as the tide goes out again they will be stranded and stuck as is the norm.

Personally I am currently looking for decent to great companies which have not yet participated in the frenzied sector rally. One tool I use to find new opportunities is to scour through the SEDI filings to see what companies have seen a lot of insider buying. Preferably I want the buying to have started BEFORE the recent rally as it would suggest that it’s not management simply trading the bullish sentiment but actually considered their respective company to be a) undervalued and b) have a positive outlook.

Some upcoming catalysts I am looking for in the short term:

  1. Novo Resources first large scale bulk sample results from the Egina mining lease within the greater “Egina project.
    1. This will be the first “real” testing of a fraction of the massive terrace flats in the Egina area.
    2. Since production costs could potentially be very low I think anything above an average of 0.50 gpt should be considered a success
    3. Since it is a totally new prospect and geological setting, I would expect exploration efficiency will pick up as time goes by
  2. Irving Resources assay results from the “shallow” portions of Omu Sinter
    1. The mother load should be deeper at Omu Sinter (if it exists) than has currently been drilled, but so far there have been very positive signs and I think especially hole #4 and #5 might give us an exciting clue as to what kind of hits Irving might produce as they drill the boiling zone. With Newmont Goldcorp’s techincal help I would say Irving’s drilling accuracy should be relatively high.
  3. Irving Resources exploration updates from the Omui Mine prospect and others
    1. Omui Mine has gotten a run for its money in terms of being the flagship project within the greater Omu Project since the success at Omu Sinter. With that said, the Omui Mine prospect looks just as good as before and I am eager to get news out of this de-risked prospect which hosts high-grade outcropping quartz veins.
  4. News of Miramont Resources’s path forward
    1. Miramont Resources has around $3.5 M in cash and Quinton Hennigh as chairman.
    2. The company has stated that they are looking to pick up another project in Peru while they search for partners that have the funds to explore deeper at Cerro Hermoso
    3. Miramont’s Lukkacha project is also something that I really want to see get drilled down the line as it is a porphery target in elephant country.
  5. Results and updates from Lion One Metal’s exploration efforts at the Tuvatu Gold Project and step out holes
    1. Lion One Metals has already hit high-grade gold during the starting phase of the current drill campaign.
    2. I hope and expect we will see many more high-grade hits all over the district scale target.
  6. Also looking forward until LIO’s own assay lab is up and running which should speed things up considerably.
    1. The long turnaround time for assay results does not impact fundamentals but it is annoying. Lion One having its own assay lab up and running will really be welcome.

 

(Note: This is not investment advice and I am not a geologist. Always do your own due diligence. I own a lot of shares of Novo Resources, Irving Resources, Miramont Resources and Lion One Metals which I have bought in the open market and am thus biased. Novo Resources, Lione One metals and Miramont Resources are passive banner sponsor of my site. )

Best regards,

The Hedgeless Horseman

Follow me on twitter: https://twitter.com/Comm_Invest

Follow me on CEO.ca: https://ceo.ca/@hhorseman

 

 

2 thoughts on “Market Discussion

  1. Seneca Sam says:

    Thanks HH,
    Good review of catalysts, however, it is a list of Quinton Hennigh companies. I have heard you comment on Liberty Gold and Premier Gold on the KE report, which seem to have upcoming catalysts as well.

    Any thoughts on the ramp up at South Arturo mine in H2 2019 for Premier?
    Any thoughts on Liberty’s Black Pine project, and the recent drill results that may demonstrate an expanded ore body?

    Enjoy your vacation,
    SS

    1. admin says:

      Hello SS,

      Bankable increase in cashflow should impact Premier Gold in a positive way. The thing with Premier is that they have so many projects that are being worked on and developed. This makes it hard to (IMHO) know how any and each part will affect the market cap and why I see Premier as more of a Buy/Hold case for the coming years.

      I haven’t looked that closely into the latest drilling but I expect both Black Pine and Goldstrike to keep growing with the added cash infusion from their Turkey sale. If/when they get these projects a bit bigger, then I think the current valuation will look silly… A decent grade, multi-Moz, oxide, heap leach operation could be very valuable.

      Best regards,
      HH

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