Trading Note | Copper Q-A | Ridiconculous

The Calandra Report / By 
Trading note

This week and last week, I sold a small stake ($300 USD) 
-- the rest of our Western Copper & Gold WRN at break-even.

I lightened up, as discussed, in DHT Maritime DHT; 
we now own approx. $18,000 worth. Profitable, long-term holding.
See below.*

I sold $800 worth of Azimut Exploration AZM AZMTF at a loss. 
We still own approx., $2,500 USD of the 5-year holding. 
(I used the cash to buy tires for a vehicle.)

I sold as discussed profitable shares of Ivanhoe Electric IE 
(approx. $1,500); I used the cash to add to our 
Ivanhoe Mines IVN, our largest stake at approx. 82,000 shares.

I bought for a second or third time in 4 years 
Kenorland Minerals KLD, approx. $2,500 USD worth. 
Kenorland holds a 4% Sumitomo Metals royalty 
on the Frotet gold project it developed. 

See The Calandra Report for excerpts below *** from
a one-hour chat with CEO-geo founder Zach Flood.

Kenorland is just in with a load of assays from Frotet 
-- here. 

The project (latest winter drilling hits below and here) is showing 
2-gram to 29-gram gold across sizeable intercepts. Kenorland is the operator 
and the royalty holder, as discussed. I will be adding to my purchase of KLD.

I sold approx. $600 USD, profitably, 
of OreCap Investment ORFDF OCI; that is about a third 
of our stake in mining holding-co OreCap.

I bought more Sprott Gold & Silver Trust CEF CEF.A 
and Aberdeen Platinum Trust PPLT.

We now own about $5,000 USD of Bravo Mining BRVMF BRVO 
See below please.**

I​ sold part of a small stake in Summa Silver SSVR SSVRF.

 -- Thom Calandra

Ridonculous Cheap: My sense of fair value in mining and other real-asset companies (shipping, real estate) is often wounded and sometimes left as road-spill to decay and get even cheaper.

Raymond James copper discussion — analysts Farooq Hamed &
Judith Elliott

Leave me to say, TCRs, that the trading values of many sub-$1 billion equities that represent producing metals such as copper, gold, platinum, uranium and silver, or represent reserves or deposits that are regulator-approved and “economic” (ultimately profitable), are ridonculous cheap.

I have a fresh copper outlook with a Q-A from a Toronto bank, Raymond James, that queried 7 copper mining companies in the bank’s Toronto offices. The panel discussion drew out beliefs that I think show how copper’s price, this month staid after a month of rebound, and the prices of producers and genuine explorers, are “ridonculous cheap.”

The copper companies in the panel this week: Arizona Sonoran Copper (ASCU), Capstone Copper (CS), ERO Copper (ERO), Filo Mining
(FIL), Hudbay Minerals (HBM), Ivanhoe Electric (IE), Ivanhoe Mines (IVN).

Raymond James says all participated in panel discussions “covering a range of themes: whether companies have a preference to buy copper production rather than build new mines, the cost of building new mines (capital intensity), incentive copper prices required for new production, the role of new technologies in the copper market and considerations around political risk and environmental planning when moving forward with new projects.”

*** Kenorland Minerals: I guess brokers and arbiters of value call what Kenorland KLD KLDCF has an “underpinning.”

The pin is an outsized royalty on the greenstone, pre-Cumbrian Frotet gold project that Zach Flood and team found, groomed, then sold in option takeouts to a Sumitomo unit.

Kenorland holds a 4% Sumitomo Metals royalty on Frotet.

Zach Flood of Kenorland Minerals this week

Zach, verbatim here, and more to come:

“This is the real deal with a 4% NSR and 0.75% buydown for $13 million CAD. We picked them as a partner and they are reciprocating the value. A 4% NSR (royalty) is worth about 20% of the NPV property interest.”

 

“Sumitomo bet on some small company that was private at the time and we went out and discovered (what some Québec observers say could grow to a mineable, 3-million-to-5-million-ounce gold deposit), and the only cost was their putting the money in the ground.” — Zach Flood

Well, that and giving up the royalty to Kenorland.

Zach is 38. Kenorland gets operating fees.

“We have $20 million hard dollars (in the bank) and people realize we are not going to be doing a financing in a while,” he says from British Columbia, where he lives with his family.

I have known Zach for 15 years, maybe more — through his now departed father, charismatic R. Edward Flood, an active geologist, a banker and a CEO for many companies.

“I love what we are doing … I look around at our team and see an incredible opportunity. This is like a dream for an exploration geologist.”
A dream? “Yeah it is sometimes stressful,” he says. ”Productive stressful.”
The boilerplate from Frotet:
  • 24RDD197: 4.70m at 24.16 g/t Au incl. 0.40m at 261.20 g/t Au at R2
  • 24RDD215: 9.50m at 9.10 g/t Au incl. 1.20m at 45.92 g/t Au at R6
  • 24RDD213: 4.50m at 16.11 g/t Au incl. 0.40m at 163.70 g/t Au at R1
  • 24RDD199: 5.83m at 12.36 g/t Au incl. 1.11m at 48.24 g/t Au at R9
  • 24RDD202: 12.00m at 5.94 g/t Au incl. 2.50m at 21.99 g/t Au at R1
  • 24RDD198: 29.50m at 2.41 g/t Au incl. 7.20m at 6.27 g/t Au at R6
  • 24RDD202: 26.60m at 2.54 g/t Au incl. 2.10m at 6.04 g/t Au at R6
  • 24RDD217: 9.75m at 6.91 g/t Au incl. 0.95m at 44.99 g/t Au at R6
  • 24RDD202: 1.90m at 31.09 g/t Au incl. 0.55m at 103.50 g/t Au at R1
  • 24RDD200A: 5.15m at 11.10 g/t Au incl. 0.60m at 73.40 g/t Au at R8
  • 24RDD207: 11.10m at 5.08 g/t Au incl. 0.40m at 106.90 g/t Au at R6
  • 24RDD198: 2.90m at 17.71 g/t Au incl. 0.30m at 153.70 g/t Au at R1

 

Previously at The Calandra Report :

These two miners are our The Calandra Report titles that thus far refuse to lose market-cap in the ongoing June metals swoon.
  • Brazil metals explorer Bravo Mining BRVO BRVMG is unveiling an (iron-oxide-gold-IOCG) copper discovery that is reaching in some intervals to 22% grades. **
  • Xtra-Gold Resources XTG XTGRF is just in with 5,400 meters of Kibi-Ghana gold holes.
  • Screenshot 2024-06-11 at 12.06.23 PM.png
    Xtra-Gold’s Drill Hole Locations in western Africa’s Ghana.

     

I count on one hand the times Xtra-Gold Resources released more than 10 exploration holes in a single blow.

The ones just released show 5,450 meters across 17 holes. Jim Longshore, CEO, and Yves Clement, exploration chief, have been working the Kibi gold deposit (800,000 ounces declared) the entire 14 years I have been dropping into their Apapam Camp there.

These show stacked “shoots” in most locations, prompting Jim’s rare declaration that the long-distilling project for the consistently profitable XTG XTGRF (property bullion sales) will evolve into a “multi-million resource.” 

Profits from alluvial gold sales, approx. $2.5 million to $3 million a year, have been “stacking” (approx. $10 million now) on the books for a decade. The remainder pays for all equipment, all salaries, stock buybacks and now, new roads that importantly will connect targets about 1 km from the Kibi’s Boomerang Zone.

*DHT Maritime Holdings. This today (June 17, 2024) from Avraam Gabrielidis in Greece. Avraam is instrumental in guiding me through the riggings of maritime shippers, especially VLCCs, very large crude carriers. After our DHT sales, we here at home own about 14,000 shares.
“A surplus of spot VLCCs is likely to hit rates into July as demand
falls,” Avraam gathers from trade publications. Gibson Shipbrokers noted a
significant decline in earnings in the last week, while Clarksons
Securities assessed modern ships as earning $38,600 per day.
“With additional weakness in the price of DHT (NYSE), I think we can see it below
$11, and I will start buying back.” Avraam says.

See full report please: Bravo Mining and Xtra-Gold Resources. 

 

 

— Thom Calandra 

PayPal $229 Yearly Non-Recurring The Calandra Report
 

Thom Calandra is a writer and an investor. Research and material are meant as editorial opinion. He is not a professional investment adviser. Please do not consider his reporting as a recommendation to buy or sell securities.