Portfolio Update: Adding to My Best Ideas (October 20, 2016)

by FI Fighter on October 21, 2016

in Lithium, Lithium Updates

Birimian

With the initial JORC resource due to be released sometime next week and shares languishing still, I had to use the opportunity to top up my position in Birimian Limited (BGS.AX/EEYMF). I added 16,835 shares @ A$0.34/share. I now own a total of 468,000 shares.

With Birimian Limited, the company is sitting on a world-class, high grade spodumene deposit in Mali. I have no doubt that shares will be re-rated to fair value after the initial JORC resource is published. The company’s exploration target is 15-18Mt between 1.8-2.2% Li2O.

bgs

No, I don’t expect the market to get things right in the short-term (how often does that ever happen?), but at some point, I’m certain that investors who are looking for a quality lithium play will turn to this name since it’s not only best-in-class, but it’s also currently trading at a substantial discount to its peer group (e.g. Altura Mining; AJM.AX).

ajm

Not to pick on Altura, but Birimian has got a much higher grade project which should also be very competitive in terms of size (we’ll find out next week)… So, I’m looking at AJM.AX as a barometer of what “fair market value” might possibly be. Obviously, Altura is much further along, which explains that hefty A$166 million market cap, but Birimian has only just begun drilling its lithium project, so the sky’s the limit for this puppy to keep on growing and growing.

From Birimian Limited.

bgs-peer-group

The lastest drill results at the West Zone (open along strike and at depth) produced some staggering hits (e.g. 82m @ 1.64% Li2O):

From Birimian Limited.

bgs-drill

From Birimian Limited.

bgs-map

Anyway, readers all know that I’m super hard-headed anyway, so if I’m gonna go down, I’m going to do so swinging…

What can I say? I bet big when I have full conviction in my absolute best ideas…

Plus with Birimian, investors are getting lithium AND gold!

Learn more about Birimian below.

 

As always, please do your own research and due diligence before making any kind of investment decision.

 

Fight On!

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{ 10 comments… read them below or add one }

1 AlexNo Gravatar October 21, 2016 at 9:51 am

i will be averaging down as well come monday cant wait for next week now if you were to see the stock pop would you take profits or you in it for the long term.

Reply

2 FI FighterNo Gravatar October 21, 2016 at 10:08 am

Alex,

Most likely I’ll book some profits along the way, selling small parcels. For my own portfolio, Birimian is currently a rather outsized position. I don’t think it’s a bad idea to trim some and reduce the cost basis to greatly reduce risks.

I still plan on holding the bulk of shares though since it’s still very early days and there’s a lot more drilling (upside) to be had.

Cheers!

Reply

3 AlexNo Gravatar October 22, 2016 at 2:39 pm

you think ill have enough time to add monday before announcement ?

Reply

4 FI FighterNo Gravatar October 22, 2016 at 5:11 pm

Alex,

When it comes to BGS, its track record shows it likes to hover around these levels, so my guess would be yes 🙂

Cheers!

Reply

5 Michael BondNo Gravatar October 22, 2016 at 3:32 pm

If you get a chance email me mate!

Reply

6 FI FighterNo Gravatar October 22, 2016 at 5:11 pm

Michael,

Will do!

Reply

7 JCNo Gravatar October 23, 2016 at 9:54 am

I read your post on when to sell gold, a bit premature for lithium, what would the catalyst be to sell in the coming years? On uranium what should your readers be looking for before deciding to back up the truck?

Reply

8 FI FighterNo Gravatar October 24, 2016 at 4:47 pm

JC,

With any commodity and stock, when the crowds rush in and the hype reaches a fever pitch, it’s probably about time to start trimming/exiting out of positions. With lithium, what we saw from March-June will occur again, and these stocks will fly… I’m guessing when Tesla Model 3 gets closer to production… My timeframe is 2018/2020 for these stocks to peak.

With uranium, it’s a very tough, opaque market to figure out… I’m personally holding out for $15/lb uranium as the bottom, but that’s just speculation and no guarantees we will get there… I’m far more bullish on lithium than uranium, however.

Cheers!

Reply

9 StealinatorNo Gravatar October 24, 2016 at 5:10 pm

I think uranium , past couple days, hit $20. The corresponding equities did not really move down much today, given that new low. A prolonged $15-$20 range in spot may be whats needed to get anyone out recently got in expecting a quick turn around. EFR has some paper coming free in , what…3 months ? I am looking to double down myself…timing……haha.

Reply

10 BeSmartRichNo Gravatar November 5, 2016 at 3:47 am

Buddy it has been a while. I am glad to see your consistent strategies on mining play. Good luck!

Reply

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