Portfolio Update: Reshuffling the Deck (November 3, 2017)
Here’s an update on my latest trades for the week ending on November 3, 2017.
Sold 25,000 shares of Hummingbird Resources (HUMRF) @ $0.4671/share Bought 2,050 shares of Novo Resources (NSRPF) @ $5.62/share Bought 10,000 shares of Pure Gold Mining (PGM.V) @ C$0.50/share Bought 2,000 shares of NexGen Energy (NXE) @ $1.88/share Sold 29,400 shares of Artemis Resources (ARV.AX) @ A$0.345/share Bought 150,000 shares of Kairos Minerals (KAI.AX) @ A$0.073/share Sold 100,000 shares of AVZ Minerals (AVZ.AX) @ A$0.275/share Bought 50,000 shares of Auroch Minerals (AOU.AX) @ A$0.20/shareHummingbird Resources
As I’ve discussed in recent weeks (through these updates and podcast videos), I’ve been looking to exit stage left on my position in Hummingbird Resources (HUM.L/HUMRF). I first picked up shares of HUMRF way back in February of this year, and the stock continues to perform exceptionally well this year (relative to most other gold stocks), up ~120% year-to-date.
Hummingbird is hitting its stride as it knocks on the door of achieving first gold pour… In my eyes, the re-rating that I was looking for has already been achieved, so from a Risk/Reward angle, I see very little appeal in holding shares into the commencement of production phase… Too many things can (and do) go wrong in the Game of Rocks, so I was perfectly content to book profits and walk away…
“Buy low and sell high.”
Mission accomplished!
Novo Resources
Moving on, I used the proceeds from the HUMRF sale to add more shares of Novo Resources (NVO.V/NSRPF).
Straight up — Novo Resources is the most exciting alpha play that I’ve ever been involved in… and the blue sky upside potential (dream) is off the charts with this one…
Yes, Novo has run up quite a bit already this year, up over 830% year-to-date, but it’s still super early days and we’re not talking about trying to discover a “typical” 2-5 million ounce gold deposit here… If we were, no doubt I’d be running for the hills in fear of getting busted up! I mean, c’mon, NVO.V is already trading at over C$1 billion market cap, for crying out loud!
No, no, no…
Novo is out to make the greatest gold discovery in the history of the world… and although early stage specs don’t always work out (they are obviously super high risk speculations!), I felt compelled enough to increase my stake at this time…
If you’re interested in the Wits 2.0 story at all, please take a listen and check out the following video (Sprott’s Thoughts):
“It starts with a b…”
I’m following the likes of: Kirkland Lake Gold (KL), Eric Sprott, etc. on this one…
From Kirkland Lake Gold.
Kirkland Lake invested C$56 million in shares of Novo Resources in early September, and now they are publicly stating that the “KL team confirmed gold mineralization over 85km strike“?!?
Are you freekin kidding me?!?
Here’s some context for you… 85km strike is roughly the distance from South San Jose to San Francisco (California)…
*Hint*
*Hint*
Even a dumbass like me can read between the lines (sometimes)… Thank you Kirkland Lake, I got the message loud and clear!
I probably still have at least one more tranche in Novo to add, which I’m hoping to do so in the event shares of NVO.V fall below C$7.00/share range.
Pure Gold Mining and NexGen Energy
When I’m “bad” and find myself too eager to chase after elephants, I do my best to try and balance things out by eating more “bland and boring vegetables”… It’s all a part of a healthy diet! So, I added more shares of Pure Gold Mining (PGM.V/LRTNF) and NexGen Energy (NXE), which are both very solid developers currently trading at attractive valuations…
First, Pure Gold…
Next up, NexGen Energy…
NexGen, in particular, controls a world class tier 1 asset, and anytime I have the opportunity to buy those on the discount rack (especially ones located in Canada of all places!), I’m paying close attention! I’ve averaged down a few times to add more shares of NXE, and I still may not be done yet!
I found the current valuation so appealing, I felt compelled to write a NexGen article for Seeking Alpha this past week…
Artemis Resources and Kairos Minerals
In addition to adding more shares of Novo Resources this week, I made some additional moves to fine-tune my Wits 2.0 portfolio holdings.
First off, I trimmed my position in Artemis Resources (ARV.AX/ARTTF) to reduce the cost basis slightly…
Next up, I tried to diversify my Wits 2.0 area plays a bit by adding shares of Kairos Minerals (KAI.AX/MPJFF).
Again, it’s super early days, so at this point in time nobody really knows which company has the best Wits 2.0 goods yet… For all we know, all these Pilbara conglomerate gold plays could all end in tears, so please do your own due diligence and research as always! I have an insane risk appetite and like to swing for the fences, so please keep this in mind!
The reason why I like Kairos Minerals?
They’ve got the right rocks to go searching for conglomerate gold and the market cap is far cheaper than Novo/Artemis (there is potentially more upside with this dinky small cap if they hit BIG).
Make no mistake about it, Novo Resources controls the bulk of the most prospective land package in the Pilbara region for conglomerate gold, but Kairos owns some “interesting” stuff too…
From Kairos Minerals.
The Croydon Project, zoomed in more closely (notice the Mt. Roe Basalt and Hardey Formation)…
From Kairos Minerals.
This is just a punt here, please keep that in mind!
But to say I’m super intrigued with the whole Wits 2.0 play would be a huge understatement!
AVZ Minerals
Next up, I tried to take advantage of immense strength and sold some shares of AVZ Minerals (AVZ.AX).
Right now, there’s a ton of speculation that this company will get bought out by a Chinese major (sooner rather than later), probably someone who is very keen on locking down long-term lithium supply… Shares of AVZ.AX actually surged all the way up to A$0.30/share at one point last week! My timing wasn’t perfect, but I was able to sell a small parcel during the middle of a rip higher…
“Buy low and sell high.”
I’m still stubbornly holding onto the bulk of my AVZ position, but didn’t mind taking advantage of a great opportunity to book some profits and de-risk even further by reducing my cost basis well into negative territory.
Auroch Minerals
The last stock I added to the portfolio this week is a new cobalt exploration play that I recently found out about (many thanks and shout out to my good buddies out in Australia for this find!) called Auroch Minerals (AOU.AX).
As readers are well aware, I am extremely bullish on cobalt over the short/medium/long term, and think the metal (and the underlying mining stocks) will do very well over the next few years. I realized recently that I wanted some more alpha exposure to my portfolio to complement my largest cobalt holding, eCobalt Solutions (ECS.TO/ECSIF).
With a current market cap of ~A$25 million or so, Auroch Minerals fits the bill!
Auroch is looking for cobalt in a historic copper mine out in Czech Republic…
They’ve certainly got the right address, anyway! Check out this image!
From Auroch Minerals.
Can a mining company exploring for battery materials ask for a better location to be situated in?!?
Auroch finds itself in a most fortunate spot… it just has to find the goods now!
Learn more about the Tisova project below:
And the main reason I’m intrigued in this early stage exploration story…
From Auroch Minerals.
That’s a MASSIVE orebody!
So, the size is definitely there… Auroch just needs to find high-grade material now (no guarantees, of course)… Assays are currently pending and we should have drill results back in another few weeks or so…
From Auroch Minerals.
Fingers crossed!
Summary
To start off the week, I sold the last few shares I had remaining in Hummingbird Resources. Next, I added to my Novo Resources position since I’m getting more and more interested in the Wits 2.0 story with each passing day… I then decided to reduce my cost basis in Artemis Resources, and to spread out and diversify my Wits 2.0 holdings by adding another company to the mix in Kairos Minerals. In between all those trades, I made sure not to forget to eat my veggies, so I added more shares of Pure Gold Mining and NexGen Energy. Further, I booked some awesome gains by trimming down a few shares of AVZ Minerals. Lastly, I added some much needed alpha to my portfolio (since most of my beta plays are not working this year!) and introduced Auroch Minerals to the portfolio, for more cobalt exposure.
Here’s where things stand now…
Until next time…
Fight On!