Tales from the Covid Bunker: Day 15


End of the world jukebox: Our good friend Anke in BC insists we all headbang and upset the neighbours today... Crank it up... Metallica - I Disappear


Hey there everybody!

So, well into our 15th day, quarantine regulations haven't been lifted. Glad to say, beyond the regular smoker's cough I'm healthy and well, just a little cabin fevered! Thanks to those who've reached out this week with calls, messages and contact. It's wonderful to be part of this community and speak to you all.

Last night the Covid Bunker opened up to host our first 'Spotlight Mining E-conference'! Despite a few minor technical hickups, with webcams and chat services, it was a great success. Teo, John-Mark and Lucia from Mundoro, Riverside and Mountain Boy Minerals all gave stella presentations and were thoroughly enjoyed by our audience, along with a keynote from Andrew O'Donnell on the state of the industry today and current buying opportunities.

Register HERE for our next event!

Something I’d like to ramble about today: My failures entering the world of investment.

I don’t think its something we’re honest enough about together and it creates a faux-sheen over what we’re doing. Not only during this downturn, but since I first got into investing in juniors (around a year ago) I’ve mostly come out losing money.

I started out picking cheap stocks from splashy media and faces and not doing enough intensive technical research, I joined the conference positivity bubble and just assumed everything in mining was great. It was a swift learning curve, I lost a lot and now only hold two of my starter companies still (Australian Vanadium – ASX:AVL & Mawson Resources – TSXv:MAW).

My 3 worst performing stocks (according to my trading app) are:

Australian Vanadium (ASX: AVL), -59% on investment
I’m not sure why these guys are currently down so far. The company have a solid project with government support, technical results from pilot studies, a definite demand and industry to supply and a tech research wing who are developing battery and e-tech for their product as well. The market hasn’t been kind to battery metals, with most people switching to gold/silver/copper for safety, but I’m still holding them. I invest for long-term production potential and I’m very confident that these guys will dig up and sell vanadium in the near future.

Nevada Exploration (TSXv: NGE), -60.52% on investment
Completely my own fault on this one. I’ve covered them before in the ‘ultra-high-risk-high-reward’ category and I paid the price for taking that risk too early. I believed 2020 would be a strong year for the company, but they’ve crashed further than most during this corona scare as people sell off their riskier stocks and pile up their more secure holdings. I still believe their project has great potential and if they hit anything (even 60% down) I think It’ll rocket. Their location is world class in Nevada and their technical hypothesis of following existing resources at depth through structural offsets is a proven strategy. This is a long game ‘hit and hope’ hold for now.

Leading Edge Materials (TSXv: LEM), -70.9% on investment
I’ve known their CEO since I was an undergrad geologist and I went on site visits with these guys in Romania in 2019. I absolutely loved the projects they were getting into in Bihor and their existing graphite production in Sweden at Woxna. I firmly believe if the company had stayed their course and CEO Mark Saxon (who I still fully support) had been able to guide them as he’d planned, they would have had great success. As it happens, they’ve been locked in a standstill from a news perspective for an extended time and not been able to capitalise on their excellent opportunities. The projects in Romania are still real and progressing through local partners, but LEM itself are an unknown for the time being.

I’m learning that investment carries risks beyond the normal ‘jurisdiction, team, geology’ trio, they also need luck, which can never be guaranteed.

My biggest lesson has been to listen to experienced investors. I’ve absorbed a lot from spending time with friends in the industry: Andrew O’Donnell at Supercharged Stocks, who has given me countless tips that have mostly paid off. Also Laura Stein, without whom Spotlight Mining may not have begun at all, John Newell from Fieldhouse Capital, Ellis Martin (The Ellis Martin Report), Trevor Hall from The Mining Stock Daily Podcast and Thibaut Lepouttre from Ceasar’s Report, Hannes Huster at Der Goldreport, to name a few.

These guys (behind closed doors) have been blunt and honest about the companies I’ve brought to them and their projects, they’ve shared gossip, research and opinion and shut me down completely quite regularly with my crazy ideas and, with their help, I am now turning my portfolio around and picking better stocks and companies. I won’t make back what I lost for a while, but I’ve stopped losing!

I hope as I learn and progress, the ideas and suggestions I offer to you through this list will also improve and be of more value to you!

The most important thing with any investment, or gambling must be, when the fun stops, stop. This is gambling in many ways and it can have the same addictive pull. We make excuses to our loved ones about where money has gone and why and we’re pushing based, in some way, on hope that we’ll hit red 21 (that’s, 100g/t over 36m with road access and a positive local community!).

If you’re not enjoying playing this game, then, you could lose your money faster on a wild binge weekend in Vegas watching Britney Spears with your friends… You could probably make money faster (than me!) by working in McDonalds.

Keep it fun, keep it realistic and, reach out to friends or fellow investors if you think you’re in too deep. Never be afraid to admit your failures here, we’ve all had them, we’re all going to have them again and, you won’t be judged.

Stay safe buddies and see you tomorrow in The Covid Bunker!

Liam
Spotlight Mining