Late July Portfolio Update (Looking Alright)

Things are good. In the commodity space, copper rallied though it has pulled back since. Gold and silver are at high levels. Nickel is in the dumps though.

Other than one dog, ECR.V (Cartier Resources), which I’m praying for decent drill results to allow me an exit, the portfolio, particularly my recent purchases, is doing fairly well. Here are some updates:

Tenaz (TNZ.TO) (+84%)

I am not an oil & gas guru. I initially took this position to get more familiar with the space. I had heard about the company and its sterling management from Mark Zaret in a Mining Stock Education video.

The company has executed another acquisition. It acquired an entity called NAM OFFSHORE B.V. for €165 million ($246 million) (along with some closing/contingent payments). NAM operates in the Dutch Sea. Its assets are natural gas hubs and infrastructure, representing 71% of the production in that region. These are assets that were jointly owned by Shell/ExxonMobil. The assets are expected to produce nearly 11,000 boe/d (barrels of oil equivalent per day) and generate approx. $134 million of free cash flow. Best of all Tenaz is not issuing any equity to make the purchase. The company will remain with an extremely tight share count, at 27 million shares.

Tenaz five-day chart as of July 23, 2024

Tenaz aims to become a 50,000 boe/d producer. This acquisition is a big step along this path, moving from 2,800 boe/d to ~15,000 boe/d combined with its Canadian assets. I will look to add to this position if an opportunity presents itself.

Regulus (REG.V) (+106%)

Yes, a two-bagger so far. I was told to sell by an industry insider as copper prices have nowhere to go but downward in the near term. I’m not selling as I believe the end is near, e.g. Q3/Q4 2024. The company has no official advancement plans for the asset, the Antikori copper/gold deposit in Peru, but to sell it. As mentioned in a previous post, consolidation in the area seems imminent.

It seems that others are anticipating being close to the endpoint, hence the share price appreciation. I continue to hold.

NGEX (NGEX.TO) (+45%)

I bought on the initial drilling results in April, 2023, after a big discovery hole at Lunahausi, Argentina. I continue to hold and am bullish on the Vicuna District, like everyone else. I recognize that I may be holding this until 2030. In some sense, a modest position provides me a reason to follow the story.

Aurion (AU.V) (+1.5%)

Yes, that’s one point five percent gain to date, which includes the shares I’m still holding. I took some off the table at 68 cents after hype around Rupert’s potential acquisition of B2Gold’s portion of its joint venture didn’t result in anything (though negotiations are ongoing). I continue to hold a small position (0.62 ACB).

I’m happy with this sale because Aurion is mainly a speculative exploration play, though some downside is reduced with its tight vicinity to Rupert’s Ikkari project. The area will require some consolidation, which may happen soon. I moved the money into B2Gold, which is a “get paid to wait” play (5.35% dividend).


That’s enough boasting. I’d better stop before I start thinking I know what I’m doing. My biggest position, FPX Nickel (FPX.V), is still trading around .30c, which matches my cost basis. I will likely add to the position as I have faith that the First Nations issues are moving forward. My wife and I do plan to renovate two bathrooms, however, which probably means I should keep some money out of stocks. (Seeing it as a figure on a screen every day, I sometimes forget that money isn’t some digital abstraction–it’s meant to have a real-world purpose.)

Onwards,

MB

Disclaimer: This content is for informational purposes only and should not be construed as financial advice. The views expressed are those of the author, who is not liable for any losses or damages arising from any actions taken based on the information provided in this blog. Investing and trading involve risk; you are solely responsible for your decisions.

Leave a Comment

Your email address will not be published. Required fields are marked *

Exit mobile version