Our Portfolio Performance from January 1st to March 31st 2021

On 7th of January we released a short summary of all our portfolio companies and why we like them for 2021.

Today we have put together a “report card” on how our portfolio companies performed in the last calendar quarter (1st January to 31st March 2021).

We cover what each company has delivered, how the share price has performed and what we expect to happen next for each of our portfolio companies.

Since we introduced our portfolio model in May 2019 we have taken positions in 19 carefully researched small cap ASX stocks that we closely follow long term.

We seek to invest in stocks that we think will return 1,000% plus gains and that we are comfortable to hold a position for 3 to 5 years.

The only new company we have added to our portfolio in the last quarter was Oneview Healthcare (ASX:ONE). However, we do expect to add at least one new investment in the next three months.

Our model is to carefully research and select only the best quality companies and management teams, and then introduce these companies to the Next Investor audience - this model only works if we deliver long term performance.

For every investment in our portfolio we write research and commentary including:

• When companies release important news, including what we think it means.
• If we think there might be a potential short term price rise.
• When we believe a stock is undervalued.
• When there is global news that affects one of the our portfolio stocks.

Here is our Jan 7th summary of all our portfolio companies and why we like them for 2021.

Here is how each of the portfolio companies performed in Calendar Quarter 1 (January 1st to March 31st 2021) including new addition Oneview which we start performance data from March 12th when it was added.

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Below is a recap of key events that have happened with our portfolio stocks since January 1st to March 31st.

For each stock, we will cover:

📋 Description of the company
🌏 Macro Investment Theme
✅ Achievements in the last quarter
💬 Our commentary on the last quarter and what to expect next

Vulcan Energy Resources (ASX:VUL, FRA: 6KO)

📋 About: Developing Zero Carbon Lithium in Germany, to supply Europe's rapid shift to battery metals.

🌏 Macro Themes: EU shift to Electric Vehicles and enforced ethical, low carbon, local sourcing of battery metals. Strong interest emerging in the EV/battery/battery raw materials sector from individual and institutional investors, and particularly ESG funds.

✅ PFS. In January VUL released its PFS which shows an after tax Net Present Value of €2.25 Billion (AU$3.55BN) - much bigger than expectations.
✅ Gina Rinehart Invested. VUL raised $120 million, with Australia’s richest person and famous mining magnate Gina Rinehart corner-stoning the raise.
✅ Three major Board appointments. VUL added a senior German chemicals industry executive, a Senior Director with the European Union Transport and Environment (T&E) who was instrumental in shaping policies around EU vehicle CO2 standards and sustainable batteries and a former Tesla executive to provide consulting services to Vulcan in relation to the lithium market, battery supply chain and offtake.

💬 Our commentary

• Massive quarter with VUL share price surging to $14.2, before consolidating back around the placement price of $6.50 for a few weeks. VUL now looks like its ready to run again.
• We are holding a long term position as we really believe in the EV battery metals theme, especially in Europe over the next 10 years.
• Events like "Volkswagen Power Day" shows how serious and real this thematic is.
• We feel this investment has now been significantly de-risked and the valuation is underpinned with $120M in the bank.
• We are now watching for offtake agreements and the impact these may have.

📈Quarterly Share Price:

• Start: $2.77
• End: $6.03
• Highest: $14.20
• Lowest: $2.73

Euro Manganese (ASX:EMN, TSX.V: EMN)

📋 About: Developing a Green and European source of ultra high purity manganese for Electric Vehicle batteries developed from the recycling of a tailings deposit located in the Czech Republic.

🌏 Macro Themes: EU shift to Electric Vehicles and enforced ethical, low carbon, local sourcing of battery metals. and in battery materials production in Europe and North America. Strong interest emerging in the EV/battery/battery raw materials sector from individual and institutional investors, and particularly ESG funds.

✅ European Union backing. European Union government backed entity EIT InnoEnergy investing €250,000 to fast track EMN’s project.
✅ $30M raise. Will be used to install, commission and operate the Demonstration Plant and to finalise its Definitive Feasibility Study and Final Environmental Impact Assessment.
✅ US-based OTCQX listing commenced. Will allow US-based investors interested to easily purchase EMN shares on the actively traded OTCQX market.

💬 Our commentary

• We are very happy with the EIT Inno Energy investment into EMN, which will help with securing project financing and introductions to offtake customers.
• Raising $30M in capital lets the company get on with things.
• As with VUL, we are holding a long term position as we really believe in the EV battery metals theme, especially in Europe over the next 10 years.
• Events like "Volkswagen Power Day" shows how serious and real this thematic is.

📈Quarterly Share Price:

• Start: 40.5c
• End: 63c
• Highest: 97c
• Lowest: 41c

Elixir Energy (ASX:EXR)

📋 About: Exploring for natural gas on the Mongolian-China border to replace burning of coal for energy in China.

🌏 Macro Theme: China’s new 5 year plan demands reduction of burning dirty coal for energy and aims to reduce reliance on foreign powers for energy supply

✅ Commenced 2021 field program. First well of the year spudded on 6 March 2021.
✅ Targeting 13 new wells. EXR aims to complete exploration of 13 wells; it will also be performing some important production test work on the Nomgon sub-basin coal seams.

💬 Our commentary

• EXR has had a great quarter share price wise and has now commenced its 2021 work program.
• We are expecting a similar rate of news flow on drills, results and analysis over the coming months.

📈Quarterly Share Price:

• Start: 13c
• End: 35c
• Highest: 39c
• Lowest: 13c

Advanced Human Imaging (ASX:AHI)

📋 About: Accessible yet advanced human imaging via smartphone app for health, fitness and wellbeing.

🌏 Macro Theme: Health Tech will continue to be focus of big tech like Apple, Google, Amazon. A global pandemic has seen significant growth in online, telemedicine need and acceptance.

✅ Name and code change from MYQ to AHI.
✅ Added an X-Factor. AHI has loaded up with several senior executives ahead of its NASDAQ listing, including its Global Chief Business Officer based in the US, who led the digital transformation of Fox Broadcasting and launched online voting for hit series such as American Idol and The X Factor.
✅ Tinjoy agreement. Tinjoy has a captive audience of over 28 million consumers within China and will integrate AHI’s CompleteScan into its “WinScan Digital Health Platform” (WinScan).
✅ Biomorphik App. The Biomorphik App integrated with MyFiziq’s technology was released to Google Play and Apple Store.

💬 Our commentary

• AHI has been one of the busiest stocks in this last quarter and that is reflected in its share price performance.
• AHI is one of our best long term performers and they probably hold the record in our portfolio for constantly delivering news flow.
• We like their strategy of becoming a white label human imaging technology (hence the company name change) and continue to watch for revenue generation from partnerships.
• We expect continued news flow in the coming months.
• We expect the company to list on the NASDAQ shortly, which will open the company up to a massive US investor base.

📈Quarterly Share Price:

• Start: $1.23
• End: $2.05
• Highest: $2.19
• Lowest: 99c

Los Cerros (ASX:LCL)

📋About: Gold Exploration in Colombia.

🌏 Macro Theme: Gold price will rise as a store of a value in a low interest rate environment and high stimulus global economy.

✅ New target identified. Emergence of an early-stage prospect, generating significant momentum to escalate a new 2021 drill target.
✅ Drilling success. Five drill holes for five outstanding results, all delivering data that increases confidence in its project potential.
✅ Drilling activity leads to assay results. LCL continues to release strong assay results to the market.

💬 Our commentary

• LCL has had another great quarter, offsetting the recent lacklustre gold price and dim sentiment towards the sector over the period.
• Since drilling began at their Tesorito gold prospect in mid-2020, LCL continues to deliver outstanding drill results. This quarter, they announced not one but two ‘Top 10 best’ drill results of any ASX-listed company of any commodity, on a gold equivalent per metre basis.
• Tesorito is shaping up as the next significant gold discovery in Columbia, and is one of several promising prospects within LCL’s pipeline.
• LCL has three rigs concurrently drilling out their gold system to see just how big its system actually is.

📈Quarterly Share Price:

• Start: 12.5c
• End: 14.5c
• Highest: 22c
• Lowest: 11c

Invictus Energy (ASX:IVZ)

📋 About: Gas Exploration in Zimbabwe. Billion Barrel of Oil Equivalent target to be drilled in 2021, potentially the largest, seismically defined, undrilled structure onshore Africa.

🌏 Macro Theme: Oil & Gas was unloved during 2020, expecting a rebound in 2021.

✅ Petroleum Exploration Development and Production Agreement (PEDPA). This means IVZ has government support for the exploration, appraisal, development and production phases of its project. The PEDPA gives IVZ the right to enter into a 25-year production licence following the exploration periods.

💬 Our commentary

• Great share price performance on IVZ.
• We expect further speculation on the result in the lead up to drilling later this year.
• We expect a mini re-rate when a binding farm-in agreement is signed.
• We continue to watch African peer ReconAfrica as positive momentum in that stock bodes well for IVZ.

📈Quarterly Share Price:

• Start: 5.6c
• End: 16c
• Highest: 18.5c
• Lowest: 5c

Minbos Resources (ASX:MNB)

📋 About: Exploration and development of a phosphate (fertiliser) project in Angola and training local farmers to increase crop yields.

🌏 Macro Theme: Global food security and socially responsible food production in Africa, strong ESG credentials and access to an emerging market with Brazil-style growing conditions and farm production potential.

✅ Long term mining title granted. The Angolan government has approved its long-term mining title - renewable for up to 35 years. It usually takes 3-5 years to get a long term mining title licence, but it took MNB less than two months.
✅ Adopted global ESG standard. MNB’s ESG goals open it up to ESG focused investors. MNB’s goals are to improve food security and nutrition, decrease levels of poverty and mitigate the impacts of climate change on farmers.
✅ Raised $7.3M. Funds raised are being used to further its DFS activities for its Phosphate Project including derisking.

💬 Our commentary

• We like MNB because of its potential to deliver shareholder returns with positive social impact. We are long term holders in MNB and topped up in the last placement at 8c in February.
• It usually takes 3-5 years to get a long term mining title licence, but it took MNB less than two months - this shows the strong support by Angola for MNB’s phosphate project.
• MNB is now funded with a mining license granted.
• We are now watching as MNB prepares to release its DFS.

📈Quarterly Share Price:

• Start: 3.8c
• End: 8.5c
• Highest: 13c
• Lowest: 4c

Tempus Resources (ASX: TMR, TSXV: TMR)

📋 About: Gold Exploration in Canada and Ecuador.

🌏 Macro Theme: Gold price will rise a store of a value in low interest rate and high stimulus global economy.

✅ Announced bonanza grade gold. Anything above 5 g/t is considered high grade, but 34 g/t Bonanza grades are a whole other level. TMR’s lab results returned well above bonanza grade. The best result was 5 meters at 61.3 g/t including 1.5m at 186 g/t.

💬 Our commentary

• TMR had been a disappointing investment for us over the last 12 months, this can happen in small cap investing but our strategy to invest for the long term. We really thought TMR was set up for success with an exciting drilling program in Canada and very low number of shares on issue.
• Every time the share price looked like it wanted to break out, waves of selling came in and smashed it down.
• Gold sentiment and Canadian winter stopping TMR’s drilling for a few months didn’t help.
• We have not sold any shares, recently added to our holdings, and continue to hold into the new drilling season.
• Consolation prize: we have now held TMR for over 12 months so we get the capital gains tax discount when it finally gets to $2 (we hope).

📈Quarterly Share Price:

• Start: 25c
• End: 14.5c
• Highest: 31c
• Lowest: 15c

88 Energy (ASX:88E, LSE:88E, OTC:EEENF)

📋 About: Oil Exploration in Alaska.

🌏 Macro Theme: Oil & Gas was unloved during Covid in 2020, expecting a rebound in 2021

✅ Drill tested 654 million barrel gross mean prospective resource. 88E completed drilling in the North Slope of Alaska. The project is on trend to a large discovery by oil super major ConocoPhillips.
✅ 'Logging while drilling’ data. Interpreation of LWD data indicated mulitple potentially hydrocarbon bearing zones had been encountered, with the result considered encouraging.

✅ Several potential pay zones hit. However operational issues prevented hydrocarbon samples from the two most prospective zones. Sidewall cores confirmed the presence of oil previously observed in cuttings.
✅ Wild share price ride. 88E’s share price rose from 1 cent to over 8 cents, with a market cap of over $1BN, on speculation of the drill results.

💬 Our commentary

• 88E has had a massive run this quarter - we stuck to the plan we shared to free carry and took some profit before the drill result was released
• 88E was a wild share price ride once US and UK markets got a hold of it pre drill result.
• Its run was based on drilling at its Merlin-1 well, where it appeared to hit hydrocarbons
• SUBSEQUENT to March 31st: The initial Merlin-1 well results announcement took a lot of the heat out of 88E and the price has settled around 2c. We executed our strategy and still hold a position.

📈Quarterly Share Price:

• Start: .8c
• End: 6.9c
• Highest: 6.9c
• Lowest: .7c

Thomson Resources (ASX:TMZ)

📋 About: Exploration and development of Australia’s highest grade undeveloped silver asset.

🌏 Macro Theme: Silver historically trails gold price movements and is poised for a run this year after being undervalued in 2020. Silver is seen as a hedge against inflation which the market predicts as becoming an issue due to increased money supply.

✅ Commenced 2021 drilling program. In January, TMZ commenced the first of its drilling programs in the Lachlan Fold Belt in New South Wales.
✅ Eyes 100 Million oz. Silver Equivalent Resource Base. Taking a 70% stake in a gold-silver project which has a 23 million ounce resource as it targets a 100 million ounce resource base.
✅ Successfully tendered for the Texas silver project in Southern Queensland. This will further increase TMZ’s resource base.

💬 Our commentary

• We are happy with the performance of TMZ.
• Its share price had a huge spike off the back of the 'Silver squeeze' (we didn’t sell any during the spike).

📈Quarterly Share Price:

• Start: 11.5c
• End: 12c
• Highest: 25.5c
• Lowest: 11c

Pursuit Minerals (ASX:PUR)

📋 About: Precious metals exploration in Julimar Province of WA (an entirely new mineral province).

🌏 Macro Theme: Nearby companies are expected to be releasing drilling results too, positive results will be positive for all the Julimar players. Precious metals continue to perform well.

✅ Highly promising survey results. Recently released survey results bode well for upcoming drilling at its WA-based PGE-nickel-copper.
✅ Applied for two exploration licences. Extending its footprint and already has taken up most of the ground in the Julimar province, where Chalice made its billion dollar discovery, leaving limited options for other companies to take a position.

💬 Our commentary

• PUR delivered five highly prospective PGE-Ni-Cu targets, which was excellent news.
• The company performed well in the quarter, up 300%. We expect its current performance to continue as it releases further news to market.
• PUR is now finishing the rest of its surveys - so we expect plenty of news to come.
• Drill testing is expected to commence next quarter, which could provide share price movement.

📈Quarterly Share Price:

• Start: 2.2c
• End: 8.8c
• Highest: 9.7c
• Lowest: 2.1

Province Resources (ASX:PRL)

📋 About: Aiming to be Australia's first truly Zero Carbon, Green Hydrogen producer.

🌏 Macro Theme: Green Hydrogen is arguable the fastest growing and most talked about emerging area of the global economy as the world turns to green, carbon free energy and transportation.

✅ Zero Carbon Hydrogen. PRL changed its name and stock code (formerly SVD) and its strategy by acquiring a “Zero Carbon HydrogenTM” project.
✅ Fortescue subsidiary pegged ground near PRL. Fortescue Metals subsidiary put applications on the land right next to PRL.
✅ Commenced wind and solar data collection. Successful commencement of wind and solar data collection at the HyEnergy ZERO CARBON HYDROGENTM Project and commenced with the installation of the first Fulcrum3D SODAR (Sonic Detection and Ranging) weather monitoring station at site.

💬 Our commentary

• PRL is inches away from becoming our “Small Cap Pick of the Year” for 2021.
• Our investment in PRL and its Zero Carbon Green Hydrogen project has been one of the highlights of the quarter.
• When PRL launched its Zero Carbon Hydrogen project we couldn’t help noticing a lot of similarities to Vulcan Energy and our position hasn’t changed.
  We first covered PRL at 2.6c, it is currently 14.5c and with a three stage plan leading into export and full scale production to Asian markets, there is plenty of upside potential.
• SUBSEQUENT to March 31st: MoU signed with Total Eren, which led us to crown PRL our Small Cap Pick of The Year 2021

📈Quarterly Share Price:

• Start: 1.3c
• End: 14c
• Highest: 18c
• Lowest: 1.3c

Vonex (ASX:VN8)

📋 About: Telecommunications company providing innovative VoIP solutions.

🌏 Macro Theme: 5G capable devices and infrastructures to roll out into the market, which will boost the transition into the ‘Internet of Everything’ network of people, processes, data and things.

✅ Multi-year agreement with Orange. Signed a multi-year wholesale agreement with Orange Business Services, the global enterprise division of the $26.2BN capped Orange Group (EPA: ORA).
✅ Acquired Nextel. Nextel will inject additional revenue streams and bring new areas of expertise, effectively expanding Vonex’s already impressive diversified product offering.

💬 Our commentary

• We are somewhat dumbfounded by the market response to the arrangement with France’s leading Telco, Orange, which we see as a positive development - upon announcement in February, VN8’s shares jumped up over 25% to hit an all time high of 32.5 cents, with the ASX consequently requesting more details.
• Upon clarification (which we note was a fairly standard arrangement), the momentum has seemingly been reversed, with the company recently trading at almost half what it was.
• We continue to see strong upside, especially at current levels.

📈Quarterly Share Price:

• Start: 23c
• End: 15c
• Highest: 32.5c
• Lowest: 15c

Oneview (ASX:ONE)

📋 About: Health tech company that provides hospital patients a “virtual care and digital control centre” at their bedside to deliver the best possible patient experience during their stay.

🌏 Macro Theme: Health Tech will continue to be focus of big tech like Apple, Google, Amazon. A global pandemic has seen significant growth in online, telemedicine need and acceptance.

✅ We added ONE to our portfolio at the beginning of March as our "Tech Pick of the Year". Find out the top 10 reasons why we invested.
✅ ISO 27001 certification. The certification is a huge milestone for ONE and allows ONE to assure its clients and other stakeholders that their information is safe and secure.
✅ Launched the world’s first and only cloud-based care experience platform for hospitals. ONE’s new cloud offering is going to turbocharge growth of new hospital clients, hospital beds and recurring revenue for ONE.

💬 Our commentary

• ONE delivered to investors what they had been waiting for this quarter: the world’s first and only cloud-based care experience platform for hospitals.
• ONE remains as the biggest initial investment we have ever made, and is our Tech Stock Pick of Year for 2021.
• We expect ONE’s sales are set for strong growth on the back of its cloud roll-out.
• We anticipate that ONE will announce news on any new deals on the cloud platform from new hospitals and expansion of existing cloud deals or more revenue per bed generated.

📈Quarterly Share Price:

• Start: 14c
• End: 39.5c
• Highest: 48.5c
• Lowest: 13c

Creso Pharma (ASX: CPH)

📋 About: Medical cannabis and psychedelics company, developing therapeutic, nutraceutical and lifestyle products for human and animal health.

🌏 Macro Theme: World regulations are expected to open up as cannabis and psychedlics become an accepted form of alternative medicine.

✅ Raised $18M. Strengthened balance sheet via a placement of shares at 19c.
✅ Entered the psychedelics market. CPH was the first ASX listed stock to acquire 100% of a psychedelics company.
✅ Continued Purchase Orders. CPH contine to sigh Purchase Orders which will help with building a stable reveneue base.

💬 Our commentary

• Share price seems to have consolidated around the 20-25c mark, following the $18M capital raise.
• CPH has had its foot on the accelerator with the Halucenex acquisition and purchase orders coming thick and fast.
• We expect CPH will aggressively promote its story in the USA once it is listed there in the coming weeks: the USA is a way bigger investor market than Australia.

📈Quarterly Share Price:

• Start: 18c
• End: 20c
• Highest: 33c
• Lowest: 17c

Galileo Mining (ASX:GAL)

📋 About: Nickel explorer in the Fraser Range of WA.

🌏 Macro Theme: Analysts are generally expecting tailwinds for the nickel price due to increasing demand from the electric vehicle industry. The World Bank predicts that Nickel demand is guaranteed to increase by some of the most dramatic figures by tonnes.

✅ Continued drilling Multiple diamond drill holes completed, unfortunately no economic mineralisaton identified yet.

✅ New EM Targets - Two highly conductive EM targets identified.

✅ Ongoing drill target generation - GAL continue to generate drill targets for testing.

💬 Our commentary

• We doubled our investment in GAL at the beginning of the quarter.
• GAL is a tighly held stock, and moves rapidly on newsflow.
• Mark Creasy is a major shareholder, and is a Fraser Range legend following his multi-billion dollar nickel discovery
• We have invested in GAL for an outsized nickel discovery that will deliver multiples on our original investment - however, this is a specualtive exploration stock - it can take time and a few attempts.

📈Quarterly Share Price:

• Start: 23.5c
• End: 21c
• Highest: 42c
• Lowest: 21c

WhiteHawk Ltd (ASX:WHK)

📋 About: USA based cybersecurity company, providing cyber risk products, services and solutions.

🌏 Macro Theme: Whole nations are now under the threat of cybersecurity attacks. The global cybersecurity market size is forecasted to grow to US$248.26BN by 2023 by 2023.

✅ No news is good news.

💬 Our commentary

• It has been slow on the WHK front, but we maintain our position.
• Given the lack of news, its share price is down on the quarter.
• Historically WHK has taken time to deliver news, but when it does it is usually in the form of large revenue generating contracts.
• We expect the newsflow from WHK to ramp up again for the rest of 2021 - WHK's deals are big and take ages to close, but when they land they are impressive.
• We are watching for revenue growth in the upcoming quarterly update.

📈Quarterly Share Price:

• Start: 29.5c
• End: 25.5c
• Highest: 46.5c
• Lowest: 25c

Alexium International (ASX:AJX)

📋 About: Develops environmentally-friendly flame retardant chemistries for many fabrics, including synthetic-rich fabrics, in the textile industry.

🌏 Macro Theme: Consumer demand for environmentally friendly and high performance cooling and flame retardant products drives broad integration of Alexium technologies in bedding products.

✅ Cash receipts up by approximately 30% to $2.2 million on a quarter-on-quarter basis in January.

💬 Our commentary

• While AJX started the year strongly, announcing its cash receipts were up 30%, it has been quiet since.
• We continue to hold, while we wait to see if the company can get the whips cracking in the next quarter.

📈Quarterly Share Price:

• Start: 5.8c
• End: 5.5c
• Highest: 7c
• Lowest: 5c

Titan Minerals (ASX:TTM)

📋 About: Gold development and exploration in Ecuador.

🌏 Macro Theme: Gold price continues to fluctuate, but remains steady and is still expected to rise to above $1900 - a strong price for gold explorers.

✅ Positive drill results at Dynasty and Copper Duke.
✅ Will sell non-core asset for $15M

💬 Our commentary

• News has been slow and this has been reflected in its share price.
• However, there are some positives including the confirmation of gold porphyry targets at Copper Duke and positive drill results at its Dynasty Gold Project in Ecuador earlier in the year.
• While we are frustrated by the company’s slow pace, we continue to hold.

📈Quarterly Share Price:

• Start: 12c
• End: 9.9c
• Highest: 15c
• Lowest: 9.5

GTI Resources (ASX:GTR)

📋 About: Uranium exploration in the USA.

🌏 Macro Theme: Uranium in the USA will form part of the Joe Biden’s clean energy policy, including localisation of Uranium supply.

✅ Received positive assay results from Niagara Gold Project.
✅ Newly granted prospecting licenses at Niagara.
✅ Identified multiple uranium targets at Henry Mountains.

💬 Our commentary

• GTR's uranium play has stalled along with the uranium price.
• This was unexpected, however GTR’s diversification has meant its share price has moved only marginally down on the quarter.
• GTR continues to progress its gold project.
• We expect news to continue to flow from its gold project and continue to hold.

📈Quarterly Share Price:

• Start: 2.3c
• End: 2.2c
• Highest: 4c
• Lowest: 1.6c