Portfolio Update: Reshuffling the Deck (December 1, 2017)

by FI Fighter on December 3, 2017

in Mining Stocks

Here’s an update on my latest trades for the week ending on December 1, 2017.

  • SOLD 40,000 shares of Artemis Resources (KAI.AX) @ A$0.30/share  
  • SOLD 370,000 shares of Pioneer Resources (PIO.AX) @ A$0.029/share  
  • Bought 5,000 shares of Ardea Resources (ARL.AX) @ A$1.54/share 
  • Bought 7,000 shares of Erdene Resources (ERD.TO) @ C$0.51/share 
  • Bought 3,000 shares of Erdene Resources (ERDCF) @ $0.395/share 
  • Bought 70,000 shares of Nzuri Copper (NZC.AX) @ A$0.20/share 

Artemis Resources

As I mentioned last week when I sold out of Kairos Minerals (KAI.AX/MPJFF), my spider senses were telling me to be more careful with these alpha Wits 2.0 plays… After the Novo Resources press release the previous Friday caused investors to panic sell, I thought it would be in my best interest to “lay low” for awhile and let the dust settle out…

On Sunday night (Monday morning on the ASX), I decided to also sell out of Artemis Resources (ARV.AX/ARTTF) at opening bell.

At one point, I was riding pretty high with my shares of ARV.AX and in good profits… By “selling low”, I walked away with minimal gains…

Oh well…

Truth is, I got way too caught up with alpha plays recently, and that’s just not my preferred style of operation… You could definitely say the Garibaldi Resources (GGI.V/GGIFF) scare on Thanksgiving day shook me up a little (a lot)

Not gonna lie — I don’t got the stomach for this type of insane volatility…

My biggest fear with alpha stories?

Taking a round trip, GT Gold (GTT.V/GTGDF) style!

Don’t hold an investment and overstay your welcome if it’s gonna keep you up at night…

You can’t really put a price tag on peace of mind, which is why I decided to cash out…

Pioneer Resources

And just like with Artemis Resources, I thought I should take things one step further and get out of Pioneer Resources (PIO.AX/PIONF) too… Again, my biggest fear at the moment is that with Wits 2.0, the “thrill is gone”, and I didn’t want the market to bust me up too badly…

By cutting my ties with PIO.AX, I booked a realized loss of ~$2,000.

YUCK!

But like they say, you can’t win em all…

Ardea Resources

I used the proceeds from the ARV.AX sale to “get back to basics”. For a boring guy like me, this means getting re-focused on beta stocks… Since I’m such an ardent clean energy/EV bull, I just thought it made sense to add some more shares of Ardea Resources (ARL.AX/ARRRF) on the most recent dip…

I like Ardea since this stock provides investors with a leveraged play on both a rising cobalt and nickel price…

Perhaps 2018 is still too early days, but at some point (maybe 2019, 2020?), I do anticipate the price/demand for nickel going up a lot higher…

Owning shares of ARL.AX is my way of gaining more exposure in both those important clean energy/EV metals, cobalt and nickel…

Erdene Resources

I’m a sucker for deep value plays, and right now, I think it’s pretty tough to locate something with a much better Risk/Reward type of proposition in the gold explorer/developer space than Erdene Resources (ERD.TO/ERDCF).

Erdene was a market darling the first half of 2017, but unfortunately (or fortunately if you’re a buyer) the company has lost all of its mojo and is now a total market pariah…

Yeah, that’s just the way things go sometimes… Shares of ERD.TO are basically sitting at/near 52 week lows…

I’ve dollar-cost averaged (DCA) down like 5-6 times now on Erdene Resources, I’m down a ton of money, but I still can’t resist “catching a falling knife”… Fundamentally speaking, I don’t see any news releases that warrant this insane sell-off… True, shares of ERD.TO got way overpriced during the summer months (which is why I deliberately chose not to follow the story that closely) but now the market seems to be overreacting to the downside…

Perhaps, maybe I’ve got 1-2 more tranches left in me… If tax-loss selling takes Erdene further into the abyss still, it’s going to be tough not to buy more shares…

Nzuri Copper

So, I closed out my position in Artemis Resources to buy more shares of Ardea Resources… Towards the end of the week, I decided to make use of the funds received from Pioneer Resources to add some more shares of Nzuri Copper (NZC.AX).

Yup, again, it’s “back to basics” as I try and get back to my beta ways, hunting for opportunities that present a very compelling Risk/Reward… In the copper/cobalt space, frankly, I’m not seeing anything more attractively priced than Nzuri Copper at this point in time…

Obviously, I’m not the only investor to notice, as shares of NZC.AX were on fire this past week (daily volume and share price movement)! It wasn’t that long ago when NZC.AX was trading at A$0.15/share…. and now we are at A$0.265/share

Regardless, I still think Nzuri Copper is undervalued (despite this most recent surge), and I may look to add more shares of NZC.AX in the near future…

Yes, Congo is a scary place… but there are just very few cobalt plays with the type of grades/econmics/low CAPEX that can compete with Nzuri Copper…

The spot price of cobalt has pulled back, but it most recently did break through $30/lb

2017 has been a tremendous year for cobalt and cobalt related equities… I’m speculating here, of course, but I think 2018 is going to be an even better year…

Just like was the case when I used to go shopping for discounted real estate in the fall/winter season, I’m trying to replicate that strategy again here with clean energy/EV stocks…

Buy low and sell high.

The fall/winter season is usually the best time to be a greedy buyer looking for under-the-radar opportunities!

Summary

I didn’t make too many transactions this week (I think)… I feel fortunate to be able to get out of Artemis Resources and Pioneer Resources with minimal losses, de-risking myself in the event the market loses its appetite/interest for the Wits 2.0 story… At the conclusion of this week, I now only own shares of Novo Resources (NVO.V/NSRPF) for exposure to conglomerate hosted gold, but hey, that’s more than plenty in my book!

No, I have no plans to liquidate out of Novo anytime soon, and if anything, I’ve decided to just lock these shares up and wait patiently for this story to play out…

Currently, Novo Resources is really the only alpha mining stock left in my portfolio….

And that’s just fine and dandy with me…

Deep down, I’m just a beta guy at heart…

So, it felt just right (and natural) to add more shares of Ardea Resources, Erdene Resources, and Nzuri Copper to cap off the week…

Here’s where things stand now…

Until next time…

 

Fight On!

{ 3 comments… read them below or add one }

1 KeedanNo Gravatar December 3, 2017 at 1:01 pm

Hi, can you share your rationale on buying some Erdene on the TSX and some on OTC. Great site, cheers.

Reply

2 FI FighterNo Gravatar December 3, 2017 at 1:22 pm

Keedan,

I have multiple trading accounts… ERD.TO is held in a taxable account using Canadian funds…. ERDCF shares are held in a non-taxable retirement account.

That’s the only reason…

Sometimes, I just pull funds from whatever account has cash available.

Cheers!

Reply

3 tp88No Gravatar December 5, 2017 at 9:46 am

NVO got quite a hit today.

Reply

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