I bought Cartier Resources in the summer of 2021. I was fairly green in the sector and bought on the assumption that the sale of their PEA-stage Chimo mine asset in the Abitibi was eminent. At the time, Chimo boasted about 1.6 million ounces inferred (I believe).
My cost basis: 0.30c.
I sold today for 0.095c, a significant loss.
Reasons for selling:
- I don’t want to own gold explorers with unlimited downside.
- I didn’t realize how common 1-million-ounce deposits were in the Abitibi. Even if Cartier could cobble together 3 million ounces via various different deposits, I still don’t think the project would stand out. Chimo has been on the sale block for years and no one has come forward.
- The company has 378M FD shares outstanding (!) After this extensive drill program; they will need to raise or perhaps rollback. I like that the company is going out with its gun’s blazing in this program. If they make a significant hit they can perhaps raise at better prices. Still, the sharecount is ugly.
- Chimo’s economic viability requires ore sorting.
- Gold discovered so far is nuggety with no homogeneity. Very little high-grade ore over long widths.
- Chimo has a 3% NSR on it (Globex)
Reasons not to sell:
- The rise in gold price could ‘lift all boats’ as they say. It did today, bringing forth my exit liquidity. Time will tell.
- Drill results are being released regularly. Greater success could be just around the corner.
- I like the CEO Philipe Cloutier and feel he is trying his best with the assets he has.
- I’m down.
I feel good for having moved on from this play. The little money I retained can be put into another less speculative play that I hope will one day make me whole again.
Disclaimer: The information from the above summary is subject to error, my own misinterpretation, and should not be used as a basis for investment decisions. 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.