Eskay, Eloro, Novo: “The Bigger The Base The Higher in Space”:
The three companies with IMO the highest absolute potential that I currently own are;
- Novo Resources
- 13,000 km2 of Pilbara + Equities
- Eloro Resources
- Iska Iska, confirmed discovery
- Eskay Mining
- Lion’s share of the Eskay Creek district, confirmed discoveries
What I find particularly interesting is that all three are, what looks to be, at the final stages of enormous break outs from multi year or decades long consolidations…
“The Bigger The Base The Higher in Space”
Eskay Mining’s 31 year long consolidation:
Eloro Resource’s 10 year long consolidation:
Novo Resource’s multi year Reverse Head-Shoulders / Bull Flag:
I simply find it fitting that the three potentially biggest monsters all have the largest consolidation patterns that I am aware of. The best part is that all three have projects that I don’t see being tied to the metals. In other words I consider these to be Alpha plays where the company news will eclipse the affects of what the metals are doing.
I am very bullish on all three based on fundamentals and the charts is just additional fuel to the fire. These three are core holdings in every portfolio I help manage. Due to the long runways and tier #1 potential, I am comfortable in classifying them as HODL cases, which is what I like in “hands off” investments. In other words I think Eloro and Eskay will grow until that rare evet happens which is a take out. In Novo’s case I expect growth for decades to come. Again, if things go to plan, they should be “buy and forget” stories that need no real trading (unlike 99% of juniors which will be trading sardines).
If/when any of these break out I simply expect them to go a lot higher than the currents levels and I currently expect all three to break out in the not too distant future. More importantly I own them because of the fundamentals. The intriguing charts are just a bonus.
There are no guarantees only Risk/Reward.
Note: Not investment advice or trading advice. I own shares of all and all are sponsors. Consider me biased.
Best regards,
The Hedgeless Horseman
Thank you Erik, these charts made my day.
Erik, nice post. If I recall it rightly, Novo owns around 10% of the New Found Gold shares worth presently around 145 Mill CAD. So the whole of Novo is valued at ca 370 Mill CAD, roughly 300 Mill USD. That does not even consider the Kalamazoo, Element 3D shares. Assuming 80.000 oz p.a. from Beatons Creek and AISC 1150 USD, your basically get the Karratha, Egina more or less for free. Right?
Kajo:
Yes, I reckon the equities are probably worth closer to, or even above C$160 M (I think E3 is worth more than last official valuation). I agree with Karratha, Egina and the other >10 known prospects + 13,000 km2 comes for free. The market can obviously be brain dead longer than I ever imagined… However Novo’s chart suggests that if/when we break to the upside it should be quite a move. Until then I am riding as many “easy to understand” plays as possible in order to add to Novo before the break out.
Best regards
Willingly I accept.