Metals Investors – What worked this year and what to watch for 2020

December 20, 2019

Erik Wetterling joins me to outline what worked in terms of his investment strategy for this year. He outlines some of his better investments and more importantly what his strategy is for next year. Also noting what he will be watching closely next year.

Click here to visit Erik’s site – The Hedgeless Horseman.

    Dec 20, 2019 20:52 AM

    GT Gold drills 124 m of 1.11 g/t Au at Saddle North
    2019-12-19 17:55 ET – News Release
    Mr. Paul Harbidge reports

    GT GOLD DRILLS 124.00 METRES OF 1.11 G/T AU, 0.68% CU (1.50% CUEQ, 2.05 G/T AUEQ) AT SADDLE NORTH
    GT Gold Corp. has released results from the last six drill holes from its 15,000-metre phase 2 exploration program at its 100-per-cent-owned Saddle North copper-gold porphyry system in northwest British Columbia. All 2019 drill holes have now been reported from Saddle North, and final assays for the four drill holes from Saddle South are pending release, expected early in the new year.

    Dec 20, 2019 20:06 AM

    Brixton Metals drills 230.82 m of 0.27% CuEq at Thorn

    2019-12-19 10:13 ET – News Release
    Mr. Gary Thompson reports
    Brixton Metals Corp. has released the final analytical results from its 2019 phase 2 exploration program at its wholly owned Thorn project, located in the Golden Triangle of British Columbia. The analytical results reported below are from a total of ten core holes, which is the balance of the 2019 program. Six core holes were drilled at the Chivas Porphyry target, two core holes were drilled at the Camp Creek Copper Corridor Porphyry target, one core hole was drilled at the Talisker Zone and one core hole at the Outlaw Zone, a sediment hosted gold target.

    Dec 20, 2019 20:18 AM
    Dec 20, 2019 20:22 PM

    Erick went to your site and look at portfolio but when I click on stock reports and look at GFG Resources Inc it said this was your New top 2 holding but is not listed in site portfolio. Also stock report does not give dates so maybe your website is not updated??

    Dec 20, 2019 20:04 PM

    Thanks, Cory, for this interview with Eric as I own Novo and Irving. Next time you talk to Eric or Quinton please ask them about Miramont.

      Dec 20, 2019 20:23 PM

      BB; it looks like SLB is going to run for awhile. You might be fortunate to see 50 but it doesn’t mean the stock is ready for a significant reversal. You like divident paying stocks and a number of months ago I mentioned I was taking a position in NAT. The stock is screaming and the worse is over for the oil tanker stocks.

    Dec 21, 2019 21:17 AM

    Thanks, Doc. Looks like SLB and NAT will have to go up without me as I am short of cash as I need to pay over 20K in property taxes next month. Rambus thinks oil will drop to 25 , so we may see SLB go lower. If oil goes up I have lots of Shell, XOM, Chevron, Suncorp, and DVN. Indiana just beat the Irish 62-60. Hooray!

    Dec 22, 2019 22:52 AM

    Good comments and interview with Erik and Cory on this editorial.

    I agree with him that sometimes investors need to explore other jurisdictions besides North America, and a country like Fiji seems odd at first, until you look into how many larger operators for Precious and Base metals have operated there, and it is much higher up in the Fraser Institute jurisdiction rankings that one would expect.

    I took out a position in Lion One (LIO) (LOMLF) as well for the huge potential of that projects to be a giant Tier 1 asset and one can review their presentation for comparable deposits to see how large it could grow. I feel good with Quinton involved there as well, but it is the exploration potential (the project) that animates me there more than the management team.

    As for management teams, I believe it’s important to bet on individuals that have a good track record, as success leaves clues, but sometimes it is also wise to take a calculated risk on other newer teams that are executing well.

    For example, I’m in (EQX) Equinox because I’ve been following some of their projects since Luna Gold, JDL Copper got rolled up into Trek Mining, and then combined with Newcastle Gold, but it was really when Ross Beaty came in to consolidate things that I said, OK – this company was just green-lighted by the pros.

    However, conversely, 2 of the companies that I did very well with in 2019 were K92 Mining (KNT) (KNTNF) and Silvercorp (SVM) because I believed so much in the projects, and while the management teams were not as famous, they continued to execute on their initiatives. I actually sold out of my K92 mining position at one point when Papau New Guinea started cracking down on mining projects and there was all kinds of community pushback and worries of nationalization. However after K92 corrected, and spending more time researching P.N.G. as a country and jurisdiction and the specific relations that K92 Mining had with the government, I felt comfortable enough to get back in, because I feel the team is doing well, and are future stars in the making, and because the project economics for their production, and exploration upside and success stand out as unique in the marketplace.

    I feel the same way about a few companies operating in West Africa like Resolute Mining, RoxGold, and Orezone that are not as famous nor are their management teams, but they are incredibly well run companies, with great projects, and they continue to do all the right things.

    Some investors need to consider the risks versus the rewards when it comes to branching out into “riskier” jurisdictions and diversifying into newer teams that keep their promises and prove that they can execute.

    Ever Upward!