JRI This Week #17
This one promises to be busy. A 6ix panel, an interview w/ Chris Taylor, updates from TAG and Globex, and maybe more.
Tickers Mentioned:
CTGO.NY; GBR. V; GMX; GRSL.CSE; KDK.V; SOLG; TAO.V
Market Thoughts:
It’s a little obvious to point out but the junior resource market is a little beat up at this point. I have been picking away at a few positions, but I am also trying to stay patient (as always) with my dollars. Tax loss season is nearly upon us, so I assume there’s going to be buying opportunities again soon enough. This sector certainly teaches some critical lessons about dollar cost averaging and derisking, or at least it has to me.
Anyway, I want to make a brief comment on the market here. I have to admit I roll my eyes at talking heads quite a bit in this sector. You know the type. The ones that manage to call 10 out of every 5 market tops/bottoms, so to speak. So I say this next part with some reluctance, but I really wonder if the next quarter or 2 aren’t finally, actually, going to end up being the bottom.
I say this for 2 main reasons:
The first is a detected shift in market sentiment. Sentiment has been vocal and poor for years now, but despite the wailing and gnashing of teeth, investors have generally kept investing and companies have generally been able to raise funds. But now? Well, you can’t call online sentiment for many companies poor anymore, but that’s because there simply is no online sentiment. People are exiting the building and many company channels are becoming ghost towns. It is anecdotal, but it feels like engagement is being hollowed out right now a little and only the most popular tickers are seeing sustained traffic. That’s a marked and recent shift.
But the pain isn’t restricted to investors. Real damage is also being done to companies at this point, as some are starting to burn the proverbial floorboards to keep the heat on. Some have flat-out run out of money with desperately needed financings languishing incomplete. GR Silver’s woes in this regard feel like a warning shot of more to come. In a similar vein, I have heard of other companies that are ceasing all IR and marketing work entirely. This belt-tightening maneuver honestly does make sense, but it also risks turning into a self-feeding cycle of downward momentum. This industry is built on stories being told that grab attention and differentiate you from your competitors. But some companies are clearly in survival mode.
This depressing reality means it is likely an incredible time to scale into positions (positions that are well and fully funded!) over the next few months if you’re fortunate enough to have dry powder. Which can be a bitter, bitter thing to say when everyone in this sector is likely deep underwater.
But I return to my original point - you have to maintain strict discipline to be able to DCA properly in these bear markets especially. Falling knives can cut deep. This isn’t meant to insult you at all if you’re trapped in a couple positions. I have also taken a big beating on some tickers. I am just trying to convey lessons I feel are important so we can collectively try to successfully navigate a difficult market.
Anyway, onto this week…
The Week Ahead:
Like I say, lots on the go for me.
1. A nickel for your thoughts…
If it isn’t clear by now, I am a big time nickel bull. Nickel and copper are the foundation of my investment thesis for the next 5 years in this sector. I’m bullish metals in general, but I think the green energy demand that is coming is transformative and undeniable.
So my little mini-run on nickel company coverage might continue as I am chatting with a couple more about future interviews and/or work. I will be able to give an update on them next week hopefully.
2. Update Articles:
TAG Oil (TAO.V): TAG is currently drilling horizontally and I am excited for their results. I will publish my written article whenever factchecking is complete.
Globex Mining (GMX.TO): Monthly update. Lots of news to cover. As for my “deep dive a Globex property” project idea: I am considering starting to build a list of all Globex royalties and try to assess their time till production to hopefully build a bit of a cheatsheet for present/potential Globex investors to track with. But that might be more of a long-term goal.
3. Interviews and Panels:
Live 6ix Panel
“The Development Phase” SolGold (SOLG.TO); Contango Ore (CTGO.NYSE)
Time: Tuesday, 2:00 PM EST
Link: Will announce soon (not created yet by 6ix)
I host a panel with a couple of companies at different stages of the mine development journey. Contango Ore and SolGold join me to discuss the traps and pitfalls of advancing and investing in development stage gold companies.
The panel will be live on Tuesday at the time listed above. I will include a link in my Tuesday update on how to access it. I encourage you to tune in.
Interview with Chris Taylor
“Assessing Copper Porphyry Projects”
Recording on Wednesday.
Chris Taylor of Kodiak Copper and Great Bear Resources fame joins me not to formally cover his current company (Kodiak) or past (GBR), but for me to pick his brain on a number of mining topics, including but not limited to his experience with those two companies. He has obviously seen incredible success as the CEO of Great Bear, and I am excited to chew on industry questions and learn from him. I welcome questions from my readers for him! This sort of interview is a great opportunity to learn from people who have proven they know how to succeed in this industry.
That is it for today! See you during the week.
-JRI
