First New Addition During The Correction: Inflection Resources

Picked up shares of Inflection Resources during this dip. Will probably do a longer write up in the future if/when I have time. It’s a very new company that was listed late July and is very under the radar… So far.

Short notes:

• Primarily ooking for another (or more) Cadia-Ridgeway giant in the Lachlan Fold Belt, New South Wales, Australia
  • Cadia (Newcrest) production estimates for 2020 is 834,000 ounces of gold with AISC of $160
• Largest single claim holder in the region: 549,000 ha
• Has one of the most impressive teams I have ever seen in a junior
  • A bunch of ex high ranking people from BHP etc
• Currently drilling 20 targets in New South Wales
• The first two of 20 targets that have been drilled showed promise immediately.
  • … Thus bringing in a second drill rig already
  • Means that their exploration model seems to work very well
  • Importance of NR totally lost on the market
• Got another district scale gold project in Queensland
  • 52,200 ha
  • Defined 11 drill targets
• Got some AI generated targets in New South Wales to boot
• Management with a LOT of skin in the game
• Enterprise Value: US$16 M
• Totally underfollowed
• High risk/Very high reward
• Company presentation: LINK

Key slides

Check out the management and technical teams…

Dominant land position in the Macquarie Arc, which is part of the Lachlan Fold Bet, New South Wales, Australia…

Skin in the game…

First five of twenty targets in New South Wales…

Their “Carron Gold Project” (52,200 ha) in Queensland…

Closing Thoughts

I don’t think I have ever seen a team with such credentials involved in a single junior (and they got skin in the game). That fact combined with the over 30 defined/drill ready targets, scale of the targets and coupled with the low valuation makes this one of the best high risk/Very high reward plays I have seen.

Note: Not investment advice. Do you own due diligence and make up your own mind.