A Quick Look at Some Holdings

Setting The Scene

What every company has to have is growth potential. Preferably Probable Growth potential on top of high Potential Growht. If you’re not growing you’re not creating value it’s as simple as that.

Margin of Safety is the main factor for me when it comes to position size. The reason why is because a permanent loss can be so costly in the long term due to how compounding works. I prefer to not have too much money in a case that has a heightened risk of going down and more importantly STAYING down. Volatility and short term sentiment is a totally different beast. Novo Resources is a good example of a cheap story where I don’t expect the “low” valuation to be permanent. There are also different kinds of Margin of Safety. A company might have a lot of Margin of Safety on paper like Rokmaster Resources and TriStar Gold (Both have big and what looks to be very economic projects) while I think Eskay Mining has Margin of Safety simply due to the amount of targets and the team’s ability to identify targets. Others might not have much Margin of Safety on paper but are so cheap relative to amount of targets/projects etc that they could miss on one and still be undervalued really.

I see so many good opportunities out there that I am more diversified than ever. I don’t necessarily like to be diversified for diversification’s sake but if there simply are so many good opportunities around I don’t see diversification as a drag on upside potential (and it of course lowers company risk to boot).

Margin of Safety > Probable Growth > High Potential Growth.

The following list includes most holdings of mine…

High Margin of Safety With Growth Potential

• Rokmaster Resources
  • Big resource and lots of growth potential
• Novo Resources
  • A producing mine and more growth potential than any other company
• White Rock Minerals
  • A mine, a resource, a JV and 3 District Scale land packages for growth
• Kalamazoo Resources
  • A deposit and multiple projects
• Defiance Silver
  • A big copper/gold deposit, a small silver deposit and room to grow at both
• Lion One Metals
  • A permitted project with a PEA and lots of exploration potential
• Mayfair Gold
  • A big resource with probable growth
• Timberline Resources
  • A decent sized resource with lots of exploration potential
• TriStar Gold
  • A big, soon to be PFS staged project ,with very good economics
• Magna Gold
  • A producing gold mine and lots of projects
• Omai Gold Mines
  • A large “inferred” resource that is overly cheap due to jurisdiction
• Defense Metals
  • A big REE resource which is being advanced and de-risked
• Deep-South Resources
  • A huge copper resource which is being advanced and de-risked
• Cabral Gold
  • A fairly large resource already and lots of exploration success + big blue sky
• Dolly Varden Silver
  • A fairly large, high-grade silver resource with room to grow
• Galantas Gold
  • A permitted mine with exploration potential
• Golden Tag
  • A fairly large resource already and lots of exploration success

Medium Margin of Safety With Growth Potential

• Goliath Resources
  • Surebet target is so de-risked and seemingly high quality that I think it really has some margin of safety
• Eloro Resources
  • In reality it probably has a lot of Margin of Safety and the blue sky is yuuuge
• Eskay Mining
  • Amount of tier #1 targets hikes up Margin of Safety via upside diversification though
• Enduro Metals
  • Has a discovery and many targets
• Silver Viper
  • Has a discovery and a lot of growth potential around it
• District Metals
  • Historic Resource and a lot of probable growth
• Altamira Gold
  • Has a resource and many quality targets
• Grande Portage
  • Has a very high grade resource and lots of exploration potential
• Kuya Silver
  • Two projects and one could be put into production relatively cheaply. Peru can be an issue though
• Idaho Champion
  • Two semi-derisked targets. Champagne has huge blue sky potential
• Avidian Gold
  • A small resource and de-risked targets. Also got a stake in a private company. Cheap.
• Metals Creek
  • Cheap relative to two relatively early stage but de-risked projects
• Pacific Ridge
  • It’s just so cheap and the company has a lot of targets/projects
• Signature Resources
  • Smallish Resource already and growth is probable
• Tombill Mines
  • Nature and proximity of the Hardrock Deposit adds theoretical Margin of Safety
• Ophir Gold
  • Historic resource adds Margin of Safety even though it has not seen “modern” drilling

Medium/Low Margin of Safety With Growth Potential

• New Found Gold
• Labrador Gold
• StrikePoint Gold
• Kingfisher Metals
• Prosper Gold
• FireFox Gold
• Condor Resources
• Inflection Resources
• Tectonic
• Copaur
• Headwater Gold
• Juggernaut Exploration
• Mantaro Silver
• Kestrel Gold

… Some of the above are still so cheap that one could almost consider them to have Margin of Safety simply due to low Price/Expected Value. Some are expensive but with probable and/or high potential growth.

Note: This is not investment advice. I own shares of all companies mentioned and many are banner sponsors. Consider me biased and always do your own due diligence. 

Best regards,

Erik