Weekly Watchlist - Dec.30, 2023
This will be the final watchlist for the year, precious metals and copper stocks continue to show strength headed into the new year.
As 2023 comes to an end, I am happy with how my trading went, I let my biggest winners run and cut my losses quickly. Trades in Atex Resources and Collective Mining really made my year for me and both were highlighted on this publication much earlier in the year.
There was also some learning lessons in 2023 for me. Here are couple main ones that come to mind.
-Stick to what you know, I tried to trade some high growth technology stocks in the summer, I didn’t have much success and took some small losses consecutively, this was at a time when there wasn’t anything really happening with natural resource stocks. I should have been more patient, sometimes it’s better to sit and observe.
-Be careful trading at times when the overall market is correcting, the chances of success are much lower. Once again it’s important to be patient and read what the market is telling you sometimes, which is easier said than done.
As 2024 approaches, I believe the macro set up is in place for a really strong market in gold and silver stocks. The sector has been unloved for a couple years now, and it’s created some very attractive bargains. Historically when the fed cuts, the general stock markets get hits, and precious metals soar. The Nasdaq was up over 40% this year, I don’t expect that trend to continue in 2024.
My screener has been full of precious metals and copper stocks recently, which is what this week’s watchlist is focused on once again.
Regulus Resources - Market Cap $148 Million Canadian
Regulus Resources had been a stock on my watchlist for a couple weeks and then all of a sudden it was up almost 30% yesterday on a good daily volume as well. It’s been an undervalued copper play for quite some time.
The company is a developer based out of Peru, with a resource of 5 billion pounds of Copper equivalent in the indicated/inferred categories. The company is cashed up with $20 million in the treasury, which is so important when investing in these type of companies.
Management has experience developing and selling assets, they sold Antares Minerals to First Quantam Minerals for over $600 million in 2010.
Rio Tinto took a 16% stake in the company in January of 2023 and invested over $20 million, which gives the project some serious credibility moving forward.
Integra Resources - Market Cap $95 million Canadian
The stock took a beating the last couple years, going from a peak of almost $15 all the way down to below $1 recently. It's moved up over 50% off it’s bottom which started in November as the precious metals sector started to move. I am watching for a big breakout on large volume, as the name presents great leverage to the metals prices.
They have exposure to over 7 million ounces of AuEq in the indicated/inferred resource category, all the projects are in the USA in strong jurisidictions. Wheaton Precious Metals currently owns around 15% of the company, the portfolio of projects they have is quite impressive.
They have completed a PEA at the Delamar Oxide Project, which will be a 1 million ounce+ operation, it presented an NPV5% of $314 millions USD at $1700 gold. This is a really good economic project that you think would draw the interest of some other producers.
We have a very similar story at the Wildcat and Mountain View property in Nevada. Very good economics at current gold prices.
Trigon Metals - Market Cap $40 Million Canadian
Another copper play that I have been monitoring for quite some time, the stock has had some recent strength. I am on watch for a potential breakout on large volume.
Trigon Metals is a copper producer out of Namibia, they have recently re-started operations at the Kombat Mine. Production is expected to ramp up considerably over the next couple years, which is why I expect a re-rate. They are only mining from the open pit currently, but underground operations are expected to commence next year.
Once underground operations commence at both locations, production growth is expected to scale up to 65 million pounds produced annually by 2027.
The company has been able to deliver timelines to shareholders thus far and execute, production is expected to commence in the second half of 2024 at the Asis West Underground Shaft which was recently de-watered. I continue to watch the stock closely.
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