Tales from the Covid Bunker: Day 39

End of the world Jukebox: As the days go on and on... South African band Seether - Same Damn Life. I was really confused watching this video for the first time, I really thought there were 2 singers back-forthing the high and low lines in the verses...

Featured image: Taken on a site vist in 2019 - Fresh core boxes on the hillside at Auramex Resource Corp's Georgie River camp in Northern BC


Good afternoon mining buds...

I'm going to start with a refresher of my current investments. I've been name dropping and mentioning a few at a time and I reckon it's probably confusing to keep track of! I'm going to write a short review on each and why I'm invested in the coming days. I think it's important you know where any bias may lay in my court when I'm writing.

Remember, this blog/newsletter is not advice or guidance on finances... It is supposed to be a fun piece following my journey learning about the industry as a fledgling investor, now at 18 months of experience (and losses)! Only a fool would follow me, but maybe a few less foolish followers can learn from my mistakes!

Overall, since I started 18 months ago, I'm 10% down, but my margins and picks are getting better as I learn and I got a few very nice break-outs during the recent dip and mini-recovery.

Producers/Royalties:
Matsa Resources, EMX Royalty Corp, Anaconda Mining, Agnico Eagle, First Quantum, Boliden, Barrick Gold, Argonaut Gold
Exploration and Development:
Riverside Resources, Amex Exploration, NuLegacy Gold, Nevada Exploration, Mawson Resources, Australian Vanadium
None Mining:
Lufthansa, Exro Technologies, iShares Global Clean Energy ETF

I'll talk about my plans to buy later in the week too, although I'm being very cautious...


For now... 9 emails in a week led me to further investigate New Century Zinc... Here's my overall thoughts based on a few disinterested flicks through NRs and 4-5 google searches...

New Century Resources announced a $51m financing for their Century Mine in Australia and also significantly changed their ownership/strategic management all in one big bounce... The company's share price fell 30% this week, since IGO announced it'd be buying in... I assume in face of major dilution with existing owners wanting nothing to do with the dull long-term development on show.

We want metals being taken out of the ground and being sold, not years of faff. This mine was only closed in 2016... The facilities, equipment, zinc and the workforce are already there. If you can't dig it up... Stop wasting everybody's money on it and diluting repeatedly... Move on. I understand this slow and tedious pace in underfinanced exploration... But, not when you're rolling in 10s of $m

I'm also raising issue with their feasibility study, which mixes metric and imperial measures and thus, can't be reliable over a mine scale deposit. although completed by Sedgeman, one of the biggest mineral processing groups in Australia, basic and glaring errors like this throw me off any more interest completely.

Let’s have a look at their board's costs for delivering next to nothing and an unreliable report...

Along the road of dilution in 2018... Exec directors being paid decent cash and/or up to $1.4m in performance based shares...? $275k for 2 non-execs... etc etc... Performance... Without a single gram of zinc out of the ground...? Who are you kidding guys? What Performance?

... For whatever reason... Evan Cranston's parents were selling off their position before anything was announced back in October 2019 and New Century were paying $60k in rent to one of their larger shareholders (also, Evan cranston's parents!) ... It looks a little dirty/confusing, but far from being the dirtiest we've dug through.

Final thought... In Australia, you need bucktooth, brash engineers and seasoned geos to really start a mine, not suited lawyers. As always, we're open to a chat with New Century if I've got something wrong. I will gladly publish any replies.

A quick semi-related shout out to Myriam Robin, an economics writer at Financial Review in Melbourne, who I discovered today and who's writing agrees with my blunt line very nicely. Expect more links here to her work, as I get busier and write less myself...!

Thus ends today's ramble! Keep yourselves well and lets hope this volatile market picks out a few more 'lifestyle' companies on it's ride around the block.

Liam
Spotlight Mining


AHEAD OF THE CURVE CONTENT: Here's a company I'd never heard of and want to learn more about... Andrew met up with CEO Gary O'Connor of Moneta Porcupine earlier this year...