New All-time Highs Across the Porfolio
December 4, 2020
What a Week!
- Element 25 hit $1.58 – up 1,274% since our call.
- Mandrake hit 13c - up 983% since our call.
- Bitcoin hit US$19,845 - up 228% since our call.
- Chalice hit $4.03 - up 1,674% since our call.
- SE1 hit 10.5c.
- Tesla hit $599
Global stock markets continued to rally, with the Dow jumping through 30,000 level.
10 Bagger Official Calls
Element 25 - E25.ax
The company release their updated PFS and expansion numbers on Thursday. This showed the Butcherbird project has a remarkable NPV of $1.1 billion and an IRR of 360%. Incredibly these numbers are generated using only 20% of the known manganese resource at Butcherbird. And they are yet to include any numbers based around high purity/battery grade manganese.
But these numbers are slowly coming together and will blow the market away when released.
The stock became our fourth 10 bagger for this year when it rallied to a fresh high of $1.58 before settling at $1.40 for the week Another solid move north yet again.
Chalice - CHN.ax
Announced a highly sort after capital raising of $100 million at $3.75 per share. It appears they are going to ramp up drilling at Julimar in 2021. The project is taking shape as one of the best mineral discoveries in Australia in the last decade. If it keeps getting bigger, a $2 or $3 or $4 billion takeover play by a major is not out of the question
Mandrake - MAN.ax
Had another huge week moving to a new high of 13c and closing at 10.5c. When it hit 12 cents it became our fifth 10 bagger for the year. We called it first back in April at 1.2 cents. Many members have done well on this stock.
The company is waiting for their exploration licence to be granted (imminent) and then drilling can commence in Jan 2021. It may move higher still as they get nearer to drilling. We do recommend taking some or most of your original investment back before drilling starts. Then let the rest ride for free.
King Island - KIS.ax
Traded most of the week in the 11c range They have completed their new DFS but are waiting for the stock exchange to be free to clear their announcement. They hope it will be out in the middle of next week. WE expect this could give them a NPV or around Aud 200 million, over six times higher than its current market cap. This should cause the stock to rerate up.
We are also waiting on funding confirmation/contribution from the Tasi State and federal governments. Meetings have been held and went well, but now we are on a government timetable for the letters, which will hopefully be out before Xmas. We will expect another re-rate on the back of that. KIS and its options KISO remain a strong buy.
Meteoric - MEI.ax
Was steady at 6.2c – we can’t wait for international flights to open again so MEI can get back to Brazil where their high potential gold targets await. The drilling news at their Oz mine site was good but not spectacular and the stock softened a bit on the news.
Bitcoin - BTC
Rallied hard to a fresh high of US$19,845 Can it break through $20,000 and head to its’ 10 bagger potential?
New Placement Oppportunity
Bryah Resources (BYH.ax) is doing a private placement (PP) for A$1 million next week. We booked 250,000 with the broker and 10 baggers took it up in just a few hours on Friday.
The PP will be at 6 cents with a half a free option attached to buy one new share at 9 cents.
This is a higher-risk exploration play and probably not a 10 bagger. But we think it’s share price could double and possibly treble in the near future as it gears up to drill its Windalllah site. The low PP price we are entering the stock at plus its strong cash position makes us feel It’ll be hard to lose much even if their drill program is a dud. Money management is recommended. Try to get your original stake back after it doubles and free ride the rest. If the drill program is a success there is then10 bagger potential here.
A new 10 bag call from Steve G in Perth. Steve runs stockbroker to the stars Pamplona Group in Perth, his 10 bag call is Blue Star Helium (BNL.asx).
He also has a small seed allocation at 10c for an upcoming IPO of 92 Energy (92E). 92E hold uranium exploration assets near Cigar Lake in Canada. Anyone with a passion for uranium or experience in the sector, please let us know.
Blue Star Helium (BNL.ax), Mkt cap $42mill @ 0.035c, cash $8mill, EV $34mill
- Helium - A unique, rare commodity essential to today’s technology. Used in Aerospace, computer servers, fibre optics, MRI X-ray scanning plus many more
- V High commodity price ~ $300mcf vs $3.00mcf for natural gas.
- Blue Star has a large and growing land position (~ 200k acres) onshore Colorado (USA) in a proven helium province (5 miles from a known high grade helium field ) .
- Excellent Infrastructure, shallow cheap wells, low capex, high margin asset
- Massive leverage to success, one discovery = $1bill of recoverable Helium. 12 mapped prospects with more to come
- Fully funded for the next 12 months including a 4-6 well drilling program to start 1st Q 2021.
Blue Star has spent the past 2 years building a world class helium exploration portfolio in the heart of the global Helium supply chain. It is now fully funded and on the cups of its first drilling high impact drilling program. I expect the share price to move closer to 0.05 -0.06 pre drill (Feb) and upon success 0.20-30c plus. And on multiple success $0.50c plus.
Invictus Energy (IVZ.ax) holding steady at 6.1c. It remains a risky 10 bagger punt. Again use money management pre-drilling.
Sensera Ltd (SE1) First called out as potential 10 bagger by Sailorlion back at 5.2 cents in October had a strong run last week moving 40% higher from 7.5c on Monday to reach 10.5c on Friday. We are waiting on EUA (Emergency Use Approval) from the FDA in the States.
Tesla (TSLA) We decided last week to call time on Tesla. But we need to mention it once more given the incredible price target placed on it through the week by Goldman Sachs - they upgraded Tesla to a buy with a $780 price target. Tesla did, what only Tesla can do, closing out the week at $599.
SunMirror AG listed week on the Xetra stock exchange and moved from €70 to close at €93. London Main Board listing is next
88 Energy (88E) @wattomagic’s 10 bag punt mentioned a few weeks announced they had farmed out their potentially giant Alaskan oil exploration asset. The prospect should now be drilled in early January.
The stock moving from the $0.006 placement price to $0.0085 on the news (up 41%)
In Other News
Given the success of Element 25, we are now working on a new manganese company with a code name Mn 2.0. Details will come early in the new year.
We are also excited about a beautiful shell that’s coming back to market after a three year suspension. They’ve managed to buy into a great asset and will re-list on the ASX after a small capital raise.
With iron ore moving higher once again we are starting to look at a small explorer in Western Australia. It’s trading at $0.002 and potentially a 10 bagger
More details to come if it shapes up as we think it can
We looked around for a pure copper play we could all get involved in. I’ve identified a beauty but until international flights open up again it’s on hold. Watch this space!
Duketon Mining (DKM) who hold 5m shares in E25 failed to move higher.
Did anyone take a 10 bag punt through the week? Or have a solid investment case for an undervalued stock?
Let us know what it was/is and why.
Disclaimer: No financial advice given. You are encouraged to do your own research (DYOR) on the above mentioned companies and their strategy/progress and make your own financial decisions.