I made a number of moves again this week in my portfolio, which I will discuss with you all below.
Here’s what went down for this week ending on August 4, 2017.
- Bought 255,000 shares of AVZ Minerals (AVZ.AX) @ A$0.070/share
- Bought 380,000 shares of AVZ Minerals (AVZ.AX) @ A$0.077/share
- Sold 47,500 shares of Pilbara Minerals (PLS.AX) @ A$0.380/share
- Sold 6,000 shares of Alexco Resource (AXU) @ $1.38/share
- Sold 41,500 shares of GoldQuest Mining (GDQMF) @ $0.373/share (~C$0.470/share)
- Bought 2,000 shares of NexGen Energy (NXE) @ $2.33/share
- Sold 11,000 shares of Newrange Gold (CMBPF) @ $0.491/share (~C$0.61/share)
AVZ Minerals and Pilbara Minerals
AVZ Minerals (AVZ.AX) is the hottest stock on the ASX right now, and I decided this past week to top off my position. We are talking about a potential world class tier 1 discovery in the making here, so I definitely didn’t want to miss out on this.
“Go big or go home.”
That type of strategy and approach doesn’t always end well, but because the first drill hole that AVZ Minerals produced looked so promising, I’m having a hard time believing that they won’t hit a lot more spectacular widths/grades again. The company’s Manono project is just too promising for me to ignore.
To fund the AVZ Minerals purchase, I sold out of my position in Pilbara Minerals (PLS.AX/PILBF). Long-term, I think Pilbara is a winner and one of the few juniors in the lithium space who will actually cross the finish line and make it into commercial production. With that said, Pilbara is entering a very boring stage in the lifecycle of a junior miner, and although I am trying to time the market to a large degree, I feel confident that I will be able to buy back into PLS.AX at a later date at a reasonably decent price.
Short-term, AVZ Minerals has all the catalysts in place for a significant re-rating, so for the time being, this is where my main focus lies in the clean energy space.
AVZ Minerals, Alexco Resource, GoldQuest Mining
Perhaps dumb gets dumber… I wrestled with this decision for a day, and ultimately decided to top off yet again. To fund even more shares of AVZ Minerals, I sold a bit of Alexco Resource (AXU) and some GoldQuest Mining (GQC.V/GDQMF).
I now own 1,200,000 shares of AVZ.AX.
NextGen Energy and Newrange Gold
As readers may recall, lately I’ve been kinda rambling non-stop about world class tier 1 assets. To stay more true to my word, I decided that it made sense for me to re-calibrate my focus and to somewhat “gamble” less in the junior mining space. Recently, Newrange Gold (NRG.V/CMBPF) has emerged as an exciting company that may be on the verge of making the next big gold discovery in Nevada. But when I stopped and assessed things, I realized that I was operating at a somewhat disadvantageous position… In other words, I bought the stock at/near 52 week highs, and when I looked at the share registry I realized that all those options/warrants are now in-the-money…
That just ain’t my preferred approach of trying to “buy low”, and I would say the risks are always elevated whenever you are chasing a stock up, like I did with Newrange Gold.
With that said, I sold out of most of my shares in Newrange Gold and parlayed those tiny profits into adding more shares of NexGen Energy (NXE). I covered NexGen previously, and although this stock has already had its major run-up and is no longer considered “sexy”, sometimes you just feel safer going with the sure thing… Well, there’s never a sure thing in the world of mining stocks, but the company’s Arrow deposit is a world class tier 1 asset that has as good a shot as any junior project of succeeding.
So, you guys can see how I like to balance my approach to these stocks… Right now, I’m chasing up AVZ Minerals to the moon, so you can say I felt the need to go more conservative with some of the other positions in my portfolio. Hence the swap of Newrange Gold for more NexGen Energy.
It’s a very exciting time in the clean energy space right now. Many lithium and cobalt stocks are flying high and sitting at/near 52 week highs. For the most part, I’d say I’m pretty well situated to ride the bull market, if that’s what we are gonna indeed get (looks like it for now, but you never know for sure).
In regards to precious metals, it was a nasty week, and silver stocks really got smashed this past Friday.
Well, you can’t win em all…
I’m not sure when it will happen, but I think we’ll see better days in step precious metals sector soon enough.
Until next time…