2024 Mining & Resource Sector Portfolio Review

I felt that 2024 was a pretty good year with recent picks doing well. Still, overall I spent too much time looking at stocks and need to simplify my portfolio/life in general. Also I realize that updates like this only show a snapshot in time. Next year at this time I may have many of the same holdings and they all might be down forty percent.

Closed Positions

VGCX – I had good timing on selling Victoria Gold before at 6.75 a month before the mine had a heap leach pad failure, causing the stock to go to zero. I sold because of poor quarterly results that pretty much guaranteed the company would miss guidance. I moved my gold producer position to B2Gold.

SBSW – As I wrote earlier, I bought this based on a recommendation I had come across online. Without my own clear thesis to back it up, I didn’t have the conviction to weather the downturn emotionally. This was a bad trade both on the buy and sell side.

ECR – My final ‘dog’ to sell to cleanse my portfolio of purely exploration plays. Cartier is making an effort with the drillbit to find new gold systems, but it will take some luck. With a large share count (378M FD), I didn’t want to be around for a rollback.

ARR – This was a play I was hoping to see develop over the next decade. However, the company was taken private, so it no longer trades.

Current Positions

ALS – Long-term hold that has been performing well.

AU.V – True this is an exploration play but the downside is capped by the value of its land sitting right on the edge of Rupert’s Ikkari open pit. The stock has traded sideways for years while investors wait either for the announcement of a deal to consolidate the land around Ikkari or a new gold discovery by Aurion. This is a small position (sold half recently)

B2Gold – I moved my Victoria Gold money into this multi-asset producer. B2Gold’s stock has been beaten down in the past year due to its Mali exposure. Many investors, myself included, are weathering the downturn and collecting the dividend 6%, while we wait for their Goose asset’s first pour (in Nunavut) in Q22025. Though B2Gold has a significant prepay to payback (264,775 ounces worth between July 2025 to June 2026) which will divert the initial earnings from Goose.

CIA – I like this company. See previous writeup. They had a small operational difficulty this quarter but should still hit the lower range of guidance. Recently in Q4 as well they found a JV partner (Nippon Steel) to advance their Kami asset to feasibility level.

FPX – My largest holding. Price has been suppressed due to one First Nations group last year announcing that they opposed the Baptiste nickel project. I believe all stakeholders are back at the table though nothing official has been announced. FPX will likely receive some government funding shortly.

MAG – I chose this simply as a silver play. It has worked though I worry about the safety of holding a single-asset producer.

NGEx – This was a “buy on positive drill results” play. It has worked. I’ll probably have to hold this for several more years (4?) to see a Filo-style finish line. Having had nothing but good drill results, I’m expecting (perhaps over confidently) this to be trading near $20 at some point.

REG – Had a two-bagger here, but recently added at 1.91. I chose this over Aldebaran Resources, John Black’s other company in Argentina, because the timeline seemed a little shorter. I’ve grown tired of holding mining companies (e.g. FPX) for seven years. I’m looking for 1-2 year timelines to an exit. REG shareholders believe we have this as consolidation in the region is imminent. See my original post for an explanation.

TNZ – This stock, found on Mining Stock Education video featuring Mark Zaret, has performed very well due to its excellent management and small share count (27M). I won’t be adding here as it has bloated in portfolio weighting, but I won’t be selling either.

I’ve labeled this my ‘Mining Portfolio’. I realize that weightings aren’t included. It has done alright, but given the time it takes to follow the sector, it would have been wiser just to invest in the broadmarket (which is easy to say in hindsight). I have a cash position and not much in terms of a broadmarket allocation. I thought I was being prudent by buying and holding the Canadian telco stalwart BCE a decade ago but the pig has fallen by 38%, which just highlights the risks of stockpicking. I may continue to stockpick in the resource sector but hope to do less of it and focus more on life.

May add to….

• FPX — I’m overweight but I believe the project will become a mine.
• REG – I may add to my Regulus position after talking to John Black (CEO) at VRIC at the end of January.
• CIA – May buy more to lower my cost basis.

Looking at (this changes every week)

• VALE, the mining giant, is another iron ore play with a huge dividend trading at all time lows. This might be a safer play than adding to Champion Iron if I can find a reason to believe iron ore prices will rebound. Though I’m not sure how ethical Vale’s is as a company.
• Getting a uranium position again via an ETF.
• Nutrien perhaps.

That’s a wrap for 2024. The next post will likely be a summary of my annual VRIC trip at the end of January.

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.