In my opinion, the announced merger makes a lot of sense for Canada Lithium and not a lot of sense for Sirocco Mining (TSE:SIM). I’m incredibly bearish on Canada Lithium and think that its mine will be uneconomic in its first year of full commercial production. Peter Secker (Canada Lithium’s CEO) has made an incredibly […]
I’ve previously thought that Canada Lithium’s mine would be extremely uneconomic. It looks like the thesis is playing out. The company is desperately raising capital to shore up its working capital. It hasn’t been able to generate cash flow from the mine yet, which raises doubt about the company as a going concern. I’ve quoted […]
It boils down to this: I think the company is lying about its project’s economics.
In short, I don’t know how to verify the economics of its project. I used to assume that (pre-)feasibility studies can be trusted to some degree. However, I looked into Consolidated Thompson’s technical reports on the Bloom Lake project and then I looked at Cliffs’ numbers– there is a huge discrepancy. The technical reports show […]
One of the annoying things about short selling is that frauds and stock promotes will occasionally be taken private, causing short sellers to lose money on their positions. If a company announces a going private transaction or other takeover event, my opinion is that the best strategy is to cover your short position and redeploy […]
In 2013, Altisource was the best performing long position in my portfolio. In 2014, I unfortunately made it the largest position in my portfolio. Because of that, I am badly lagging the market.
Contango Ore recently announced a joint venture with Royal Gold (press release). Royal Gold will invest $5M initially with an option to increase its ownership in the project. It looks like I was too optimistic in my assessment of the company. I thought that the company was ready to advance the deposit to production. The […]
This illiquid $35M exploration company is very difficult to value but could be worth up to $75-235M. Contango Ore has issued a press release announcing (A) its initial resource estimate and (B) the engagement of a “strategic advisor”. The CEO, Brad Juneau, has stated: “We feel we have reached the stage of proving sufficient known […]
My portfolio was largely: Long US stocks. This did fine as Altisource (ASPS) was one of my largest positions. Short US stocks. Unsurprisingly, I lost money here. Long volatility/options. Long Canadian junior mining stocks. I am slightly profitable here despite the bloodbath in the TSX Venture. I lagged the S&P 500 index but still had […]
This (long) post details my thinking on how I currently approach the industry.
