Portfolio Update: Reshuffling the Deck (February 06, 2017)

by FI Fighter on February 6, 2017

in Precious Metals Updates

Wow, what an epic day for gold and silver mining stocks! Holy smokes, I don’t think we’ve had such a robust trading session since pre-election… Certainly, the monster gains we were all witnessing last summer have become nothing more than an afterthought in recent months… Not surprisingly, sentiment and investor interest in mining stocks has started to wane as of late…

But after this most recent spike up?

Who knows? Maybe the precious metals mining stocks are gonna recover and experience a second wind of sorts?

In any event, I’m paying as close attention to the day-to-day movements as I possibly can! In fact, I most recently made the following moves…

Let the wheelings and dealings continue!

  • Sold 9,874 shares of B2Gold (BTG) @ $3.20/share
  • Sold 100,000 shares of Northern Shield Resources (NRN.V) @ C$0.05/share
  • Bought 40,000 shares of GoldQuest Mining (GDQMF) @ $0.3074/share
  • Bought 11,624 shares of GoldQuest Mining (GQC.V) @ C$0.40/share

 

B2Gold

To start things off, I decided it was time to trim my B2Gold (BTG) position. Without question, BTG has been one of the best performers in my mining portfolio, and actually when I sit back and think about it, buying shares of this stock ranks way up there as one of the smartest investment decisions that I have EVER made in my entire life… I didn’t sell out of my BTG position entirely, but I did liquidate a good majority of it (~2/3), paring off 9,874 shares for a realized gain of $31,589.99. This was a limit order and I only got a partial fill…

I still own 6,626 shares of BTG, which at a current market price of $3.36/share, is worth $22,263.36. Certainly, at this stage of the game, I am free carried ($0 cost basis, no skin in the game) on my remaining BTG shares, so even if this current position blows up in my face and goes to $0/share, I will still have profited $30,956.77 off of this wonderful speculation…

My total gains (unrealized + realized) for BTG currently reside at $53,220.13.

B2Gold is one of the best mid-tier gold producers on the market… The company is firing on all cylinders! But I very much believe in the axiom of “buy low and sell high“, which is precisely what I am attempting to do here… From a valuation standpoint, shares of BTG just don’t look cheap to me, no matter how you slice it… At this time, I think there is much better value out there in the gold space (an alternative company I like is also addressed in this article; scroll down below the Northern Shield section to learn more) …

But I could be dead wrong and completely off the mark here with BTG…

Nevertheless, I made my gains and I’m more than content with cashing out… So, even if BTG continues to soar and eventually eclipses all-time record highs, I will have no regrets…

Northern Shield Resources

As I mentioned in the Rules of the Game article, I really have no problems with severing ties with my losers and booking realized losses. In the case of Northern Shield Resources (NRN.V), I still think that this early-stage exploration story is very prospective, but due to the recent “duds” over at their Sequoi property, moving forward, I’m NOT quite an enthusiastic with the company’s prospects of making a massive new discovery as I once was before…

So, yes, my investment thesis has changed since the time of my initial purchase into NRN.V…

No doubt, I absolutely do realize that by selling at this particular time, I indeed proceeded to “sell low”, which is usually a “no no” when it comes to basic investing principles… Nevertheless, I did what I felt was best for my own situation…

I closed out all 100,000 shares of NRN.V for a net loss of -$8,722.17.

That really does suck, I’m not going to lie… But I’m doing my best not to get emotional about it…

Over the course of 2017, I’m anticipating selling a number of mining shares this year, so any losses than I can use to offset the unavoidable capital gains taxes will be welcomed… That, and I don’t believe in “trapped” capital… Northern Shield won’t be drilling again for awhile, so I do believe that I will have ample opportunities to buy back in later, should I decide I want to speculate on this story again…

In the meantime, gold and silver look to be making a strong push back up and moving in the right direction again, so I would really hate to miss out on any potential next leg up…

With that said…

GoldQuest Mining

I used the proceeds from the NRN.V sale to purchase 11,624 more shares of GoldQuest Mining (GQC.V). Not content to stop there, I decided to “double dip” and I used funds from another brokerage account to add an additional 40,000 shares of GDQMF.

Coupled with the previous transaction, I’ve now made three new purchases into GoldQuest this month… GoldQuest has now become a Top 3 holding of mine, and it represents one of the best ideas that I have in the junior gold space

I’m probably done buying for now, but GQC.V at C$0.40/share, or sub ~C$100 million market cap seems like a good deal to me… GoldQuest is one company I want to be well positioned in, especially if gold and copper prices continue to breakout to the upside!

I now own 191,624 shares of GoldQuest Mining (GQC.V + GDQMF).

Summary

2017 is getting off to a wonderful start for the precious metals mining stocks… very similar to 2016. Will we have a sustained rally and repeat of summer of 2016? It’s too early to say at this point, but one thing I will try to do a better job of this year is to book profits when I’m sitting on a lot of gains…

In a rising market, everything ALWAYS feels so counter-intuitive… But yes, these mining shares do get bid up, and yes they do become insanely overvalued… No different than when sentiment is excruciatingly bearish and these stocks trade in deep value territory…

This time around, I will try to be way more disciplined in keeping a robust cash balance on hand so that I can load up and “back up the truck”, should such a wonderful gift be given to us again by Mr. Market…

Anyway, like myself, the following is ALWAYS a work in progress…

Here are the 23 companies that I now hold in my portfolio, sorted by market cap…

Just last month, everyone and their grandmother was calling for sub $1,000/oz gold… If I’ve learned anything, it’s that investor sentiment changes on a dime and is some seriously fickle shit…

 

Best to be prepared for any kind of scenario that might unfold… After all, the markets are absolutely unpredictable!

 

  • If gold screams higher and explodes to $1,500/oz, it’s all good, as far as I’m concerned…
  • If gold finally gives up, throws in the towel, and concedes defeat… cratering below $1,000/oz, it’s all good, as far as I’m concerned…

 

I’ll be ready for both scenarios (and anything in between) with a big smile on my face!

 

Fight On!

{ 10 comments… read them below or add one }

1 Buy, Hold LongNo Gravatar February 7, 2017 at 2:15 am

Very nice sell price on the B2 gold. You would have to be happy with that one. Overall looks like you’ve done well for yourself.

Reply

2 FI FighterNo Gravatar February 9, 2017 at 5:12 am

BHL,

Thanks! It’s been a wonderful ride with B2Gold… Can’t complain at all.

Cheers!

Reply

3 LexxCommNo Gravatar February 7, 2017 at 8:49 am

Good Morning FI,

Which brokerage firm do you utilize to purchase Canadian stock? I’m located in the US and sometimes would like to purchase through the the Canadian stock symbols not US.

Lexx

Reply

4 FI FighterNo Gravatar February 9, 2017 at 5:13 am

Lexx,

I use Schwab Global to purchase foreign stocks (ASX, TSX, TSX-V).

Cheers!

Reply

5 alexNo Gravatar February 7, 2017 at 11:37 am

Crazy the Price action we have had with gold quest the pat 2 days

Reply

6 FI FighterNo Gravatar February 9, 2017 at 5:13 am

Alex,

GoldQuest has been off the charts this week, indeed!

Happy hunting!

Reply

7 BigSnacksNo Gravatar February 7, 2017 at 1:33 pm

Dude you are on fire… (does Ezekiel Elliot feed me motion)

Reply

8 FI FighterNo Gravatar February 9, 2017 at 5:14 am

BigSnacks,

LOL, well Jayfire is my handle on most of these stock forums…

Cheers!

Reply

9 yinNo Gravatar February 8, 2017 at 10:28 am

Love it! I got couple thousand shares of B2Gold at 2.50. Riding this as a leveraged gold price play. Also bought Bear Creek Mining as the silver part of the portfolio. Keep up the good work.

Reply

10 FI FighterNo Gravatar February 9, 2017 at 5:15 am

Yin,

Wow, congrats on the big win with B2Gold! It’s made a lot of investors happy this last year…

Bear Creek is another one of my favorites!

Cheers!

Reply

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