Exploits Discovery – This Year’s Exploration Focus At 3 Targets On The Appleton Fault in Newfoundland
Jeff Swinoga, President and CEO of Exploits Discovery (CSE:NFLD – OCTQX:NFLDF) joins us to share the 2022 exploration plans at the Company’s portfolio of Projects in Newfoundland. This year’s drilling and exploration will be focused on 3 key targets along the Appleton Fault, where New Found Gold and Labrador Gold have intersected high-grade gold, and 1 new target on the Valentine Fault. Exploits is the largest land holder in Newfoundland.
We have Jeff recap last year exploration results and how these are filtering in to this year’s program. We have Jeff outline why the focus this year will be on the Appleton Fault as well as provide more information on the Valentine Fault. Jeff joined as President and CEO of the Company in September of last year so this is the first drill program under his leadership.
If you have any follow up questions for Jeff please email us at Fleck@kereport.com and Shad@kereport.com.
Click here to visit the Exploits Discovery website and read over the recent news release highlighting this year’s exploration plans.
Mike, I own both. Was set to be a long term holder of each.
I guess it pays to go after mergers when the prices are lower than they should be.
I expected much more from Yamana from a longer-term outlook.
I believe Doc owns it as well. Not GoldFields, but rather Yamana. It’d be interesting to get his take too.
I have to admit I’m not a fan of Gold Fields – way too much risk for a company at that tier. I already sold 1/3 of my position and moved it to Alamos Gold. Let’s see what tomorrow brings but I’ve learned that when companies like GFI, or AngloGold Ashanti for that matter, come calling it is best to run because shareholders will get the shaft. They are leaving or have left Africa for a reason and you don’t want to be around when it shows.
More importantly I’m deeply disappointed Yamana’s board – they sold us all out.
Dave Erfle and I chatted a bit about this takeover of Yamana by Gold Fields today on a editorial that just got posted recently, and he sees it as a good thing for the sector, noting that the prior mergers of Agnico Eagle taking over Kirkland Lake and Barrick taking over Randgold both happened near intermediate bottoms in the mining stocks. Hopefully we’ll see a continued wave of M&A deals in the PM sector, which may bring a bit more excitement to an otherwise unloved sector that has remained under pressure.
As for Anglogold Ashanti, they just topped up their stake in Pure Gold in that most recent financing, so I could see them just making a run at (PGM) soon to put them out of their misery. Also Anglogold Ashanti hasn’t done any big mergers of equals in a long time and has only done the takeover of Corvus thus far in this M&A cycle, so buying Pure Gold would help them bulk up a bit more.
Ex: The problems with these mergers/buyouts is that most investors are not making much from them. They are buying high quality companies with real potential on the cheap and without a premium. I constantly hear talk about what will bring other investors into the sector well that is easy – the ability to make money, getting some return for the risk you are taking. I have been sitting on shares of Yamana for years and will make a bit from this but frankly even with dividends it won’t be much.
Now I sense you are not a buy and hold investor but I am. If you invest in a company that has potential and have it taken out when there is a few bad months in the sector you will be lucky to get your principal back. Don’t even think about a 2x, 3x or more gain. I’m starting to think that the only way to do this kind of investing is to get in early, keep the investment small and run when a company like Gold Fields shows up. For me I held off selling all my Yamana today which was probably a mistake because tonight it seems to be falling fast. At this rate any premium will be gone tomorrow morning. A fellow I read told his audience today that he would sell all Yamana and get out, you do not want to own Gold Fields. As I sell my Yamana I will pick up some Alamos Gold, keep some cash and move a large chunk out of PM. The market is just too broken for average investors – it is only for active traders and Board Members like those at Yamana that sell out their investors at the first opportunity.
Hi Mike. With regards to the cyclical and volatile mining sector, most stocks have not been good buy and hold candidates over long stretches of time, whether gold/silver, copper, oil, uranium, lithium, or whatever.
Most resource stocks have periods of extreme bullishness or bearishness, and don’t do well over decades or even 7 years, 5 years, or 3 years. Most stocks can have good runs for 1-3 years or often just 3-8 month periods of time from troughs to peaks in pricing.
These extractive commodities companies don’t have pricing power over their products like tech or retail or healthcare, and thus are at the mercy of the underlying commodity prices and inflationary pressures on their cost inputs. As a result they are far better to trade in and out of buying when oversold and selling when overbought, or at least trading 10%-50% of a position around a core longer term position, increasing during painful corrective periods, and decreasing during excessive bullish blowoffs.
There were runs like the 8 months between Jan-Aug of 2016, the Q1 Runs of 2017, 2018, 2019 for a 2-3 months coming out of Dec taxloss selling, there was 6-8 months late summer 2019 through Jan/Feb 2020, or the 6 months late March 2020 after the pandemic crash through Aug 2020, or 2-3 months Dec 2020 through the Feb 1st 2021 for the SilverSqueeze, or late Sept 2021 through Nov 2021, or Dec 2021 through March 2022.
All if those were tradable rallies. Buy and holding for 3-20 years has not been a winning approach in the majority of stocks or commodity sectors, and the majority of investors that made money traded them while they went from hated to loved over shorter windows of time. Again, not just the PMs, but Copper stocks, Oil stocks, Uranium stocks, Lithium stocks, Fertilizers, Agricultual soft commodities, etc…
So with that same background of cyclical and volatile trends in the PM mining stocks, it is the same thing for whether investors made money or lost money on mergers and takeovers. Longer term buy and hold investors may be so far underwater by the time the buyout is announced that they still lose money or barely break even, hence the bellyaching that surfaces from those people during takeover announcements.
However, more nimble traders that were accumulating new positions or adding to existing positions during times or extreme weakness, will cheer the exact same transactions as an easy 30%-50% premium and easy return. This is the value to utilizing technical analysis for entries during oversold periods, and the benefit of layering into and out of positions in multiple tranches to get a better cost basis, versus plopping into a position at the wrong time and then sitting in it for years only to see nothing essentially happen, making for jaded bagholders instead of profitable traders.
Personally, I’m in about a half dozen takeovers each year and make money in most of them, and use those as liquidity events to exit positions for a win in most cases, having added or gotten positioned during the big selloffs. Sometimes I feel they do rob the smaller company of larger upside moves, but the acquiring larger companies are taking them over to capture that upside and they are opportunistic just like individual investors and want to buy low just like everyone else.
I remember getting in Crocodile gold before Newmarket took them over when they were hated, and then rode a partial position in Newmarket to the takeover in Kirkland Lake for the win. Most Crocodile Gold shareholders were jaded at the takeover from Newmarket, but that’s because they bought and held a loser for years and weren’t made whole, whereas I bought in much closer to the buyout into the oversold weakness.
Same thing when I positioned in Richmont or Klondex or like you & I had discussed with Corvus last year. I figured all 3 would get taken over for their assets, and bought into oversold weakness, and was thrilled when the takeover news was announced, and exited for a win each time. However, each time there were many longer term buy and hold investors grumbling that got in at much higher levels, did nothing to average down, didn’t exit losing trades years earlier, and were pissed about the buyouts, yelling at management instead of considering the poor positioning and investing they themselves executed.
Even on positions I built core holdings in over time, I may not love that a company is getting scooped up in a low period for a sector but I book the win and move on, as I’m not married to any position, and a small 20%-50% gain is still a profit. This is how I felt about Ely Gold or Golden Valley being acquired by Gold Royalty last year, or Azarga Uranium being acquired by enCore last year.
While I may not totally jive with the business combination (like Roxgold by Fortuna last year, or the thwarted hostile bid for Elemental by Gold Royalty this year, which I traded partially on the initial news, then bought back after it sunk post failed takeover), it is irrelevant if I made money on the trade buy accumulating low and selling for a profit. There are ALWAYS other trades to rotate those funds into and endless amounts of mining stocks to choose from.
Even on special cases with amazing assets like the prior incarnation of Silvercrest, when they sold to First Majestic, or Great Bear when they sold to Kinross, it may have robbed from the true potential in the smaller vehicle, but nobody really knows. Maybe if not for the takeover the junior may have run into money issues and diluted, or lost investor momentum, or hit a snag, or there could have been years of opportunity costs for holding it. A takeover is a clear premium at that time, and while it may end that stocks journey prematurely, it is still a win and profitable liquidity event.
Canuckski, I do own AUY and bought it in the area of $4.00. I’ll be selling it tomorrow. GFI got hit really hard (and I don’t own it at present) and will probably move even lower over time. I’ll then have to decide if I want to purchase it.
/GC 240 minute is chewing through support at 1841…next support is 1834 the daily OUL…then below is a retest of may low…nothing yet….would be nice to have volume contract…that would be a price volume buy signal …imho
/GC is coming in on slight volume increase in this volume re-tet of 5/16/22 low…If it holds, should launch the intermediate 20 week cycle….looks normal and not scary….
Besides me is there anybody out there underwhelmed by the offer from Gold Fields for Yamana? I am sickened by the fact that Yamana’s board sold us out for so little. Yamana was a much better company without the jurisdictional risk that Gold Fields brings to the table. It pays a better dividend and doesn’t have the baggage that Gold Fields carries.
If you want to know why no investors should be in the mining space then look no further than Yamana’s Board. You can’t buy right and sit tight in this sector because the Boards will sell you out at the first chance they get.