Haha! Agreed OOTB. Yes, I don’t want to contribute to the black hole of taxes except when there is no other option. Since many mines have pulled back substantially, I saw the opportunity to take the tax loss sales now, wash out a great deal of capital gains, and reinvest the proceeds into existing positions or new positions that are also on sale.

Yes, the fiat is becoming more nonsensical and as the saying goes eventually “cash is trash.” 🙂

Yep, I decided tax loss selling came early for me, as I needed to wash out some of the capital gains I’ve been sitting on, and have the thesis that the second half of the year is going to be more constructive than the first half was, so best to take the losses now, and add to some of my other positions now while they are hammered down, and then buy back some that I trimmed or sold in 30+ days so I don’t mess up the wash sale rules. We’ll see how it goes…

EX:
This may shock you (NOT), but once these sales clear at the end of the week, I may use Emerita to hold during the “wash” period.

No, that doesn’t shock me David, as I know you are a fan of Emerita, and it has been a fantastic trade for you. Really well done sir.

For me I’ve spread about 3/4 of the funds from tax loss selling to either fortify other core positions that I want to hold during the 30+ day “wash period”, and I even started a few new positions in stocks I’ve had on the watchlist for a while that I believe may have more compelling short to medium term catalysts than some of the stocks I trimmed or sold out of.

Scorpio needs to break that 13 cent resistance level and if it does look out!

Ann you out there? Remember I told you Scorpio I’m July could look good? It’s now or never lol.. the news looks good now gold needs to break higher. Fingers crossed not a cat bounce and back to candy store.

Glen

Hey Matthew – What do you think about Jaquar Mining these days?

I no longer own it but it’s a buy right now in my book. The balance sheet and free cashflow are solid and with a 5.6 PE, 6.5% dividend and far more cash than its negligible debt, it is cheap.
The big risk it has that larger producers don’t is the exposure to just one country but at least it is diversified within the country and Brazil seems safe to me aside from the possibility of more temporary “covid” related closures.

If it has more downside, I don’t think it is much BUT ignore my opinion if you think gold is going materially lower.
https://stockcharts.com/h-sc/ui?s=JAGGF&p=D&yr=1&mn=3&dy=0&id=p01915772804&a=991141150

Thanks. I take it you swapped out for more silver miners?

Yes but I’m sure I bought some others too including Galleon Gold. It’s been quite awhile since I sold so I’m probably forgetting a few.

Interesting discussions on both Scorpio Mining and Jaguar Mining. I own both, but haven’t added or trimmed to either, and have just been holding steady.

Agreed Ex and good to know you are still holding Jaguar Mining. That 6.5% yield is what I like, but jurisdiction risk is certainly a consideration. Matthew, I looked at the Galleon Gold investor presentation and see Sprott is involved. Good location in Timmons and recent high grade gold drill results with significant 46,000 meter drill campaign. Do you know when their options/warrants expire? Wondering if that might be part of the current pressure on the stock. I didn’t see anything in the presentation on that. Cash position was $5 million in February down from $8 million the prior year. Any thoughts on if they will need to raise cash soon? Was there anything else that drew you to Galleon?

Hi Charles, yes I’m holding Jaguar from much lower levels and love the high dividend yield that pays me to wait out this corrective move. As for them operating in Brazil, they have done so for over a decade now, so I’m not as concerned about it as some are, barring a covid situation, as Matthew mentioned.

As for people liking to follow companies with Eric Sprott involved, well this is one of his largest positions, and he owns 49% of JAG, so that should tell investors exactly what he thinks of the potential at Jaguar mining.

Charles, I was drawn to Galleon by its value and exploration potential (blue sky). Value is, of course, related to what the company has, might have, and where it has it in addition to my views on gold itself.
I do not like all the paper outstanding and it is something that must be overcome but my net assessment is that the play is worthwhile and could still easily offer a triple before gold really gets moving. A new resource estimate is coming along with a share consolidation which should not be too disruptive since most shareholders know it’s coming.
From the MD&A:
Exercise of outstanding options, and other future issuances of securities, will result in dilution of our common
shares.
As at February 28, 2021, share capital consisted of:
• 470,642,928 issued and outstanding common shares;
• 21,800,000 options outstanding and exercisable at exercise price ranges from $0.05 – $0.30 and weighted
average remaining contractual life of 3.60 years; and
• 148,650,074 outstanding warrants with exercise price ranges from $0.05 – $0.18 and weighted average
remaining contractual life of 2.19 years.

As at April 27, 2021, share capital consisted of:
• 470,865,655 issued and outstanding common shares;
• 27,350,000 outstanding and exercisable options with exercise price ranges from $0.05 to $0.16;
• 148,427,348 outstanding warrants with exercise price range from $0.05 to $0.18.
— — — — —

At least the exercise of those warrants will cash up the company so we will get something for the dilution and they outnumber the options by more than 5 times.

Good thoughts Ex and Matt. Thanks for the response.

This might provide useful info if you haven’t already seen it:
https://galleongold.com/site/assets/files/3858/20210119_-_mp_-_ggo_-_fact_sheet.pdf

It’s from MPartners, not Galleon.

Thanks! I had not seen that analysis.

Thank you, Ann. For everyone’s benefit, I should have acknowledged that he could have come up with his target by way of a completely different method. Different approaches have taken me to the same targets too many times to count over the years and always gets my attention. One would think that such occurrences would increase the odds of reaching the target but I don’t have any stats to support that. (Maybe I should have been keeping records!)
For example, here’s another way to 24 silver support:
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=D&yr=1&mn=3&dy=0&id=p71284524164&a=995088357

Best of luck to both of you.