C3 Metals in Jamaica Again | Redeeming Grace | La Mano Di Dio
Redemption is a loaded word. a. The action of saving or being saved from sin, error, or evil.
At dinner in NYC (Song e Napule, Amsterdam Avenue — restaurant interior photo below), a former colleague and microcap mutual fund manager/director of research (Jacob Asset Management), and a The Calandra Report/TCR subscriber from Day 1, was describing the REDEMPTIONS that come in during tough markets.
The investor sells and the fund has to cash out something to cover the ‘withdrawal’, “preferably something liquid if you are in small and micro caps,” he noted.
Darren Chervitz‘s main fund and 3 co-managed ones are in forward looking titles: across the board: tiny biomeds, techs, real estate, health care, social media enterprises., the Internets; renewables … and three miners, all explorers.
I think he is brilliant. Yet times like these make his record look nuts: several years ago, he is the best micro-cap mutual fund manager in the United States; this year, among the worst.
That signals BUY TIME for me, and perhaps it does for other small-cap and micro-cap value investors who can withstand deep losses for three or four years.
When a fund reduces to, say $20 million NAV from $100 million in three or so years, it is time to buy. Right?
By the way, the redeemers really don’t get redemption, at least not instantly. I mean, sell a holding that is 50% or more in the hole for a tax loss?
I have three REDEMPTION IDEAS. I give ’em because you, our TCRs, are surely in the hole on many of the miners I have on our The Calandra Report/TCR plate. I know I am. Looking for personal and professional redemption?
So look, the five or six of 15 or so miners I own (and of another 10 or 12 I track here in the reports) that are not in the hole, and this is an example I think of timing and potential, were:
1. bought long ago, c-h-e-a-p, as in Ivanhoe Mines IVN IVPAF and Xtra-Gold Resources XTG XTGRF;
or 2. are physical trusts, gold, some silver, platinum;
or 3. are recent uranium purchases (Laramide Resources; Nuclear Fuels; Canalaska Uranium);
or 4. are ones I just bought at the (fingers, legs crossed) bottom of the sanitation barrel — C3 Metals CCCM; NewCore Gold NCAUF.
A fifth element: they were/are a services/shipping company and not a miner, specifically DHT Maritime Holdings DHT.
Redemption Ideas
- I mentioned this Jamaica exploration last week before I left for Manhattan (back now); C3 Metals has more results today-Wednesday:
Out with copper-gold assays at the Jamaica project I visited: C3 Metals CCCM CUAUF. C3 shares are moving higher with considerable trading volume from the target at an area called Bellas Gate.
The target, Provost, netted 112 meters of 0.35% copper and 0.13 gram gold. Silver, too. Assays here please.
The drillers stopped drilling after 418 meters when a fault zone proved problematic.
Analyst Lauren McConnell weighed in; she is from Paradigm Capital and was on our tour of Bellas Gate:
“It is unfortunate that this hole didn’t reach targeted depth but positive to see it end in such high-grade silver and copper mineralization. More importantly, this confirms that there is high-grade epithermal potential within the porphyry, indicating the potential for both bulk tonnage copper-gold and high-grade precious and base metal vein deposits.”
TCRs, the hole from last week showed grades and intercepts that were noteworthy: 0.43% copper and 0.2 gram a ton gold over 200-plus meters. See assays please. There are approx. 30 drill holes to be published. Or 27 to go.
I just added to a small stake of CCCM CUAUF.
C3’s Dan Symons from Toronto: “We have moved from $0.04 to $0.09 CAD since Sept. 11, so some investors are starting to take notice. The majority of the market has no idea what we are onto yet.”
There you go. I sold my C3 shares many months ago and now I am back in.
2. Azimut Exploration AZM AZMTF. It is, like Ghana producer and developer Xtra-Gold Resources, careful not to ram-rod equity issues for fresh capital, in turn screwing existing shareholders. Jean-Marc Lulin‘s recent $9 million “raise” occurred, recall, at Beaver Creek Precious Metals Summit and employed at least four avenues for “accretive finance”: (if such a thing exists): critical minerals and exploration-charity financings in Québec among them.
There are Azimut mining reasons: more controlled, owned concessions and minerals claims in Québec than ANY OTHER COMPANY; predictive modeling savvy; the Elmer Gold Project at James Bay; the lithium properties, copper properties, uranium properties and nickel properties. Its deep-pocket partners (Agnico-Eagle AEM among ’em).
On the personal purchases roster, when cash frees up here at home: C3 Metals; more Nuclear Fuels; more Laramide Resources; Skyharbour Resources. More Azimut. More physical platinum. [Oh, I just bought more Laramide on Tuesday on our way back from NYC.]
3. Newcore Gold NCAU NCAUF. This is a special situation, and I just bought in the other day. Yes, NewCore is in Ghana, a gold (cocoa, oil) nation with perennial debt challenges.
I love Africa’s second largest gold miner, the democratic nation of Ghana, and Ihave been there six times: five of those with James Longshore of Xtra-Gold, along with Quinton Hennigh, Sir Sam Jonah and a few others at separate times; and once with Robert Friedland of Ivanhoe Mines/Ivanhoe Capital.
The Newcore special situation part: Luke Alexander, CEO, and a TCR subscriber, fed me a heads-up:
“Now is a good time to take another look at Newcore. We saw significant volume (about a week agp) as a result of a tax-loss seller capitulating, and we believe that tax0-loss selling in general has put undue pressure on our stock recently.”
That means possible redemption, definition b., and definite redemption on the part of the seller, definition a.
Newcore “gold” valuation: the stock sells for approx. $6/oz USD, which is 0.10x the 2021 net present value of the project as determined in an econ-stufy in 2021. “I believe that as a result our valuation is unreasonably low and hence this presents a value buying opportunity. I last bought stock at $0.15 CAD, so putting my money where my mouth is.”
The project is called Enchi: average gold recovery of 91.7% from column testwork on oxide mineralization.
That is it for now, TCRs.
See notes also please: Radisson Mining, Dynasty Gold, Nuclear Fuels, other ridonculous pricings. Full report here please.
The Calandra Report/TCR subscribers: earlier rough notes, direct quotes via Beaver Creek Precious Metals Summit. Earlier TCR cacheshere. And here please.
See also: BEAVER CREEK’S Executive verbatim here please
— Thom Calandra
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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.