New Portfolio addition will be announced Tomorrow (Monday)

New Portfolio addition will be announced Tomorrow (Monday)

Monday 31st March at ~10AM AEDT, we will be emailing out our new Investment and commentary on why we Invested.

Keep an eye on your inbox around 10AM tomorrow...

Yesterday’s Saturday Edition:

Commentary:

• About the new ASX stock we Invested in and are adding to our Portfolio on Monday - it’s our first one in 4 months and it’s in tech.
• Our commentary on the new highs hit by gold and silver during the week.
• Where is the money going to come from to drive the next bull run in small cap stocks?

Read our Saturday Weekender here

Our ‘Quick Takes’ on news from our Investments

• PUR raised $1.1M to advance its Argentine lithium project AND to “evaluate further strategic acquisitions”...

(PUR has reiterated it is looking for new assets in Argentina in this week’s announcement. With a ~$5M market cap, a new acquisition could see new interest move into the stock, aside from any catalysts on the lithium front)

• TTM released metallurgical testwork showing gold recoveries of over 90% on its 3.1M ounce gold project in Ecuador.
• EXR’s regional neighbour Omega Oil and Gas flowed gas and (more surprisingly) oil from its flow test in the Taroom Trough in Queensland.
• Uranium processing expert says Australia should look to “develop uranium fuel processing in conjunction with US firms”

(sounds interesting for GUE holders - GUE’s strategy is to build a high grade uranium portfolio, targeting a potential 100Mlbs of total resources (inside the US). It also owns 21.9% of a “world leading” uranium enrichment technology.)

• JBY is days away from a drill program, looking to build on its 1.4M ounce gold equivalent JORC resource in Nevada, USA.
• Two of our Portfolio companies were granted ‘strategic minerals project’ status as part of the Critical Raw Materials Act (CRMA) - (EMN, VUL)... also our past Investment EMH

Longer notes we wrote this week

Kaiser Reef (ASX:KAU) acquires 25,000 oz per year producing gold mine... becoming a multi asset gold producer. Gold price at record highs

KAU made an acquisition this week that transforms the scale of its operations in a big way.

KAU acquired the Henty Gold mine in Tasmania from $1BN capped Catalyst Metals.

Post acquisition KAU immediately becomes a ~30k ounce gold producer (with plans to increase that to ~50k ounces)...

At today’s ~A$4,800 per ounce gold price that is $144M in revenues for KAU (and potentially ~$240M if production can be increased).

Post transaction KAU will be capped at A$83M post transaction, with $27M cash...

Read more: 💻 $83M KAU to become a 30,000 oz per year gold producer. Gold at all time highs...

Haranga Resources (ASX:HAR) acquires advanced gold project in the US - in the heart of the original US gold rush.

This week HAR acquired an advanced gold project in the US.

HAR’s project sits in the Mother Lode region in California - A location widely considered to be where the world’s first gold rush happened back in the late 1840s.

HAR went into a trading halt to acquire the project, just before Trump signed an executive order that made gold production in the USA a strategic priority.

Great timing for HAR...

HAR’s new gold project comes with a fully permitted processing plant, an established foreign resource, and some nice deeper targets to drill test over the coming months.

Here’s basically what HAR has picked up, and what the plan ahead is:

Read more: 💻 HAR to acquire USA gold project, gold processing plant in heart of the famous US gold rush

Sun Silver (ASX:SS1) announces a 480 million ounce silver equivalent JORC resource in the USA... silver is at US $34 per ounce.

Our 2024 Small Cap Pick of the Year SS1 upgraded its JORC resource this week.

SS1 added 57M ounces of silver equivalent to what is already the biggest pre-production silver project on the ASX.

SS1’s resource now sits at 480M ounces silver equivalent.

(2.16M ounces of gold, 296.5M ounces of silver)

BUT...

The even bigger news was that SS1 could potentially now have mineralisation SS1 starting from the surface.

IF SS1 can prove that working theory, then it could change how the market views SS1’s resource from a technical and economic perspective.

SS1’s current resource sits at ~ 200m below the surface which is relatively deep.

Yes, 480M ounces is a LOT of silver, but SS1 needs to dig a big expensive hole (pit) to reach it before they can extract and sell it.

However if SS1 can demonstrate evidence that mineralisation is present from surface, the economics of its project could change dramatically.

Read more: 💻 SS1: Increases to 480M ounces of silver equivalent resource... and identifies at surface and near surface mineralisation.

Genmin (ASX:GEN) - Signs mining convention - next step is mine financing

This week, our green iron ore investment GEN confirmed it had signed an all important Mining Convention for its development stage, 100% owned project in Gabon.

The signing ceremony was officiated by the President of Gabon, His Excellence Brice Clotaire Oligui Nguema, who shook hands with GEN’s director Mr Pietro Amico.

And here’s the whole joint negotiating team at the end of the final working session to finalise the Mining Convention:

This long awaited sign off of the Mining Convention was the essential agreement required to formalise GEN’s status in Gabon, and most importantly secure its project development capital.

There’s at least four financiers in the mix, and this week’s news is a big de-risking event for them.

Now it's over to GEN to get financing sorted...

Read more: 💻 GEN: Mining Convention signed. Project financing next

Macro News - What we are reading & listening to 📰

Defence:

NATO to Ask European Allies, Canada for 30% Boost in Military Capacity (Bloomberg)

• NATO plans to increase European and Canadian weapon stockpiles by 30% over the next few years, requiring major financial efforts.
• The US is pressuring allies to raise defense spending, with a new 3%+ GDP target expected at the June NATO summit.

Germany Set for Trillion-Euro Defense and Infrastructure Splurge (WSJ)

• Germany approved a €1 trillion spending package for defense and infrastructure, aiming to boost the economy and reduce reliance on the U.S.
• Economists warn structural reforms are needed to maximize benefits, including tax, labor, and procurement efficiency improvements.

Battery Metals:

China ramps up state investment in critical minerals as US trade tensions intensify (The Oregon Group)

• China has invested over $13.8B annually in mineral exploration since 2022, the highest in a decade.
• Beijing tightened export controls on key strategic minerals amid rising US-China trade tensions.

Copper:

Copper’s Uber-Bull Predicts New Record on Most-Profitable-Ever Trade (Bloomberg)

• Copper prices could surge to record highs as US tariff threats drain global stocks, tightening supply in China.
• Mercuria predicts a 320,000-ton supply deficit in 2024, with traders profiting from price gaps between US and global markets.

Copper price inching towards another all-time high (Mining.com)

• Copper prices are nearing record highs, with a 27% surge this year amid US tariff concerns.
• Analysts predict a 320,000-ton supply deficit in 2025, driven by strong US demand and global copper shortages.

Gold:

Gold price explosion is reviving mothballed mines across Australia (AFR)

• Coolgardie is experiencing a gold revival with nine new mines reopening, driven by high gold prices over $3,000/ounce.
• Investor interest in gold projects is surging, with significant funds raised for the revival of dormant mines like Bullabulling.

Gold Road (ASX: GOR) blasts South African suitor in $3.3bn takeover tussle (The Australian)

• Gold Road made a $2.3bn counteroffer for Gold Fields' 50% stake in the Gruyere mine, accusing Gold Fields of a "low ball" takeover bid.
• The dispute centers on management issues at Gruyere, with Gold Road pushing for more information on the potential for underground mining.

Gold fever brings open pit M&A warfare. Beware investors (AFR)

• The gold sector is seeing soaring M&A activity, driven by record gold prices, but questions remain about the sustainability of such boom-time deals.

Uranium:

Australia should look to uranium as a chance to dodge Trump’s tariffs (AFR)

• Opinion piece: Expert sees uranium processing as potential leverage to prevent US tariffs on steel and aluminium.
• With 30% of global uranium reserves, Australia plays a key role in US energy security.

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(let us know if you have any comments/feedback or requests to see anything else in our Sunday Edition by replying to this email.)

Bye for now.