Investment Profiles

The following is a synopsis of some of my concentrated investment ideas. These ideas were high conviction, publicly shared, with the majority of them taking place during the toughest of Gold markets. These ideas are not intended to portray that I have not had any losses. I have. But such losses have been fortunately minimized as much as possible, which as a result have been immaterial to the overall investment portfolio but have helped refine and improve the due diligence approach.

$CLGRF | Claude Resources | Acquired | Profiled this publicly during 2014 (before I had a wide following). Leading up to 2014, the company was struggling financially. I had taken a bath with this position. In fact, at one point I was down over 75% from my initial purchase price. I did everything you’re taught not to do. Bag hold it. Financial data was getting worse. They began selling assets, including Madsen, at fire sale prices. In 2011,Claude discovered the Santoy Gap and L62 just a few months apart. This was a high grade discovery that featured 2,000 ounces per vertical meter, much higher grade than what Seabee was providing. It was quickly brought into production within 3-years. Despite all the financial issues that followed, and after being down so much, I was very hesitant, but after successive updates at the Santoy Gap, I began doubling down significantly. The effort brought my average cost down to .25. Once Santoy was brought into production, the company’s fortunes changed. Costs went down materially, margins soared and production growth surged, leading to significant FCF generation. There was a lot learned about this deal and a lot of luck as well. I took these lessons learned and incorporated into my investment process. The exit culminated with the acquisition of Claude by Silver Standard, which is now known as SSR Mining.

https://www.wsj.com/articles/silver-standard-to-buy-claude-resources-for-about-253-million-1457364774

https://www.prnewswire.com/news-releases/claude-resources-inc-expands-discovery-at-the-santoy-gap-seabee-project-130552198.html

https://www.northernminer.com/news/claude-resources-a-turnaround-story-dundee-says/1003543043/

$KL | Kirkland Lake Gold | Profiled extensively at the $5-7 US price. Today it trades over $50.

https://twitter.com/i/moments/878686941901975552

$WDO.TO | Wesdome Gold Mines | Profiled extensively in May of 2018 when it was trading at $1.50 US and Kiena valuation was not priced in to the stock. Today it is trading north of $10 US.

https://twitter.com/i/moments/1002913388501065728

$AGB.V | Atlantic Gold | Acquired | Profiled extensively prior to commercial production at Moose River Consolidated at around $1-1.20 US. Wrote this article in January 2019: https://economicalpha.blog/2019/01/27/atlantic-gold-corp-phasing-in-on-what-could-be-ahead/. It was then promptly acquired by St. Barbara a few months later in May of 2019 for $2.90 CAD in cash, or $2.20 US.

https://twitter.com/i/moments/1003277218401972229

$MAI.V | Minera Alamos | First profiled in June of 2019 at around .12 CAD cents. At the time, I had just met Doug Ramshaw at the JTVIR conference. Minera was about to get through a painful warrant overhang. After the meeting, I initiated my first position: https://economicalpha.blog/2019/06/26/a-few-mining-names-i-am-watching-as-gold-breaks-1400/. Since the week of June 19, 2019, Minera is up 500%, from .11 CAD to .74 CAD, outperforming most of its emerging producer peers. I covered it several times on Twitter and wrote this article back in September: https://economicalpha.blog/2019/09/24/minera-alamos-update/. Since this article Minera is up nearly 300%. The gold price has of course helped, but the outperformance is attributable to management and execution.