Portfolio Update: Reshuffling the Deck (November 24, 2017)

by FI Fighter on November 26, 2017

in Mining Stocks

Here’s an update on my latest trades for the week ending on November 24, 2017.

  • SOLD 150,000 shares of Kairos Minerals (KAI.AX) @ A$0.09/share  
  • Bought 370,000 shares of Pioneer Resources (PIO.AX) @ A$0.036/share  
  • SOLD 4,000 shares of NexGen Energy (NXE) @ $2.61/share  
  • SOLD 5,000 shares of Garibaldi Resources (GGI.V) @ C$2.45/share  
  • Bought 20,000 shares of Balmoral Resources (BAR.V) @ C$0.43/share 

Kairos Minerals

At the start of the week, I made the decision to liquidate out of my position in Kairos Minerals (KAI.AX/MPJFF). This is an alpha play, and I originally got into the stock because like everyone else watching the Wits 2.0 story, we were all awaiting for a news release to announce the findings of “lots of watermelon seed gold nuggets”. When the anticipated news release failed to materialized (so far), shares of KAI.AX/MPJFF started trending downward and I was worried of an even steeper sell-off…

Turns out those fears were not misguided…

I booked a small profit with Kairos Minerals, but feel more fortunate than anything to be able to close out this trade without losing any money… Alpha stocks I tellz ya, they are beyond crazy volatile!

Pioneer Resources

Being the gambler that I am (damn it), I immediately flipped the proceeds from Kairos Minerals into another Wits 2.0 story (sort of)… I took a punt on Pioneer Resources (PIO.AX/PIONF), since lately there’s been a lot of chatter and speculation that this might be the next company in the Pilbara region on the verge of a major discovery.

I mean, check out this tweet from @Ozwitsgold.

And some replies to other gold nugget related tweets:

From Twitter.

Another teaser from last month…

*Hint*

*Hint*

Taking *HINTS* from random strangers online, eh FI Fighter?

Well, sort of…

But @Ozwitsgold isn’t just “anybody”… He’s this guy…

From Perth Now.

From Perth Now.

MEET Johnathon Campbell — the accidental rock-kicker who inadvertently kick-started a gold rush.

The ex-FIFO worker and musterer, whose discovery of so-called “watermelon-seed” gold nuggets has sparked an unprecedented run on the ASX, has done the deal of a lifetime to sell his leases to Canadian miner Novo.

But the father of six said he would be “just as happy if I’d never found the f… thing”.

After yet another week of sky-rocketing junior gold stocks — De Grey up 27 per cent, Artemis 39 per cent and Kairos 30 per cent — Mr Campbell confirmed the deal included:

  • $250,000 cash (already paid)

  • 450,000 Novo shares once the leases are granted — at today’s price equates to more than $3.6 million.

  • $1 million discovery bonus in Novo shares or cash if drilling results show 250,000 ounces of gold on site.

  • 1 per cent a year royalty if the operation goes into production.

 

Yeah, that guy… Someone who ought to know a thing (or ten) about Wits 2.0 Pilbara conglomerate watermelon seed gold nuggets…

 

Hey, the Wits 2.0 story was SCORCHING HOT until this past Friday (latest Novo Resources press release was quite a buzzkill)! I guess I got a little too caught up in the euphoria and thought if an impending news release from Pioneer Resources was just around the corner, perhaps it could really jack up the share price to the upside?

Well, unfortunately, no news release regarding gold nuggets materialized this past week from the company, and shares of PIO.AX have been selling off over the last few trading sessions…

Sigh…

Bad timing on my part…

Yes, I will look to exit out of this position because Pioneer Resources is definitely NOT a stock I am interested in holding onto for the longer-term… This was supposed to be a quick flip, more than anything else…

NexGen Energy

I made the tough decision to trim some of my NexGen Energy (NXE) this week, since the stock was brimming good and I was able to make some nice profits on the last few tranches of shares that I purchased just recently.

The uranium bull is back (maybe)!

Look at that surge!

With NexGen, I looked at it as a most recent example of a deep value play with improving fundamentals that was only being sold down because sentiment towards the underlying commodity was piss poor… So, my strategy was to “overload” on discounted NXE shares while the going was still good, in hopes I would later be able to sell some back into massive strength (this past week) to help reduce my overall cost basis (but still leave me enough NXE shares to be able to participate in the longer-term story/urnaium bull run).

I hope that makes sense…

Yeah, that’s my story and I’m sticking to it!

Garibaldi Resources

I finally closed out my position in Garibaldi Resources (GGI.V/GGIFF) this past week by selling tranche 4/4. As usual, I had terrible timing with this one, and will admit to kind of panic selling into the massive sell-off that took place into the morning of Thanksgiving…

I didn’t sell at the absolute bottom, but the stock has rebounded sharply since my exit point.

Straight up, it was no fun at all watching this stock get shredded up, and I don’t care what anyone says about “free carried” positions…

There’s really no such thing…

“Free carried” or not, that’s real wealth (money) that is disappearing right in front of my eyes, and I was seriously starting to worry about witnessing another GT Gold (GTT.V/GTGDF) type of sell-off event… No question, I really wanted to avoid taking a round trip more than anything!

I discussed alpha stocks FADING earlier this week

Yeah, I’ll confess I’m a wimp and I don’t have the stones to ride out alpha stories… With Garibaldi Resources, I booked ~$34,000 in profits over just a few months, so when all is said and done, I have zero regrets!

If the company is fortunate enough to be able to go on to discover the next Voisey’s Bay 2.0 or Norilsk 2.0, please do (it’ll be good for the entire mining sector!), and best of luck to all the long-term (hardcore) shareholders who believe in this story enough to ride it out to the very end…

I don’t have that much faith (patience), so I just wanna take my gains and move on.

So, I finally did.

Here’s how I tried to dollar-cost average up and out of GGI.V

First sale: C$2.00/share (25%)

Second Sale: C$2.20/share (25%)

Third Sale: C$4.85/share (25%)

Fourth Sale: C$2.45/share (25%)

Entry point was C$0.712/share in late August.

In hindsight, I really just got way too greedy here and should have cashed out tranche 4 much sooner… Excess greed is something I struggle with, as you can probably tell by now…

Balmoral Resources

In my heart of hearts, I know I’m not suited to dabble in alpha mining stocks… I’ll take a swing from time to time, but deep down I’m just a beta man! So, I decided to stick to the “tried and true” approach by adding more shares of Balmoral Resources (BAR.TO/BALMF), pretty much at/near 52 week lows…

This stock is just absolutely hated right now…

And it’s sort of a forgotten story in the gold/nickel sector…

That’s cool, I’m more comfortable sticking primarily with deep value plays…

I was very happy to add shares of Balmoral Resources way the hell down here; right now, I think my position is set and I’ve got more than enough shares to play the eventual fierce rebound (hopefully) in the gold/nickel space. Balmoral gives investors a leveraged vehicle to ride both those commodities, which is pretty cool in my eyes.

Summary

A few more transactions this week… I swapped one Wits 2.0 play for another by closing out my position in Kairos Minerals and initiating a position in Pioneer Resources. Next, I booked some profits and reduced my cost basis in NexGen Energy. On the day of Thanksgiving, I decided I had enough of insane rollercoaster rides and decided to finally move on from Garibaldi Resources. Lastly, I went bargain hunting and added mores shares of Balmoral Resources.

Here’s where things stand now…

Until next time…

 

Fight On!

{ 5 comments… read them below or add one }

1 AlexNo Gravatar November 26, 2017 at 11:53 am

Do you plan on selling out of your Novo position now following the dull results ? Or plan to hold through january

Reply

2 FI FighterNo Gravatar November 26, 2017 at 12:09 pm

Alex,

I need to get out of Pioneer but plan on sticking it out with Novo through thick and thin… Well, at least until we have a very good idea of how prospective this Wits 2.0 stuff really is.

Not ready to give up on Novo yet, it’s way early days still.

But with that said, risk management is very important and I don’t want to get busted up, which is why I’m re-assessing my other Wits 2.0 holdings now.

Cheers!

Reply

3 JOHNNo Gravatar November 26, 2017 at 12:27 pm

Good Day,

Only three silver plays? More alpha vs Gold going into the second leg?

Great blog

Reply

4 FI FighterNo Gravatar November 26, 2017 at 12:33 pm

John,

Yup, that’s right 3 silver plays (for now).

Alexco Resource
Bear Creek Mining
Dolly Varden

Although I would add Almaden Minerals on that list too since 1/2 that project is silver.

Silver does look cheap here, may have to consider adding some more shares. Watching the following:

Dolly Varden
Excellon
Silvercorp

All the best!

Reply

5 PaulNo Gravatar December 6, 2017 at 12:40 am

Thanks for your useful and honest blog…

I am putting in a few low bids on good beta stocks that are unloved and may get cheaper this month due to tax loss selling… Like Balmoral perhaps.

Any suggestions?

Reply

Leave a Comment

 

Previous post:

Next post:

Copyright © 2012 FI Fighter