10 Bagger Club Annual Performance Report for 2021

Introduction

Everyone is welcome to join, it’s our diversity of knowledge that makes us smarter.

Since we began, 22 months ago in February 2020, we have called 32 different potential ten baggers.

Our Overall Summary Performance at Year-end 2021

In 2020 we made 13 ten bagger calls, eight of which have ten bagged so far, (62% run rate.) We have already exited 11 of them to cash up and roll into our newer 2021 calls. The average hold time for all our 2020 calls has been 14 months to date.

In 2021 we made 19 more ten bagger calls. Five of which have already ten bagged so far (27%) and five of which we have already exited to roll on the money into newer calls. The average holding time for our 2021 calls at the end of 2021 is still only five months.

Performance of All Our 10 Bagger Calls To Date

Key: CD: Call Date | ED: Exited Date| CP: Call Price | HP: Highest Price Whilst Active | HG: Highest Gain Whilst Active %

Caveat: We measure the performance of our calls using the highest gain method. This measures the performance from the price we make a call to its highest price until we exit the call. We know this method can be flattering as it’s hard for members to buy at the very bottom and much harder to sell at the very top. But we believe this measurement method best shows the full range that members had to profit from in each call. Look, even if members only made 50% of the gains recorded from our calls, they would probably still have outperformed all other stock-picking services we know, and most crypto recommendation services.

A Summary of Our Investments in 2021

Equities

2021 was not a great year for stocks, at least in the junior resources stocks sector on the ASX that we tend to concentrate on (as that’s what we know best and often where good 10 baggers can be found). Our calls ran up in the early months but then fell away in the mid-year. They ran hot again in the third quarter but closed the last two months of the year with some nasty weakness and falls - leaving our calls, and many members’ portfolios (especially those who joined in the latter half of 2021) looking weak at year-end.

Our 2020 Calls

We have now exited most of our 2020 calls during 2021 as many had 10 bagged or more.

Q1 2021 We exited our club’s first call, gold developer De Grey (DEG.ax) after one year with an impressive high of 3,100%.

Next, we sold out of listed food developer Wide Open Agriculture (WOA.ax) after a 1,750% highest gain and also its separate listed 1c options (WOAO.ax) after they ran up to $1.24 for a huge win of 12,400%.

Q2 2021 As the Covid lockdowns and big government handouts dissipated, we exited buy-now-pay-later superstar Afterpay (APT.AX) with a high of 1,355% and also exited internet furniture retailer Temple and Webster (TPW.ax) which had risen 602% from our first call price as sales for both companies e-commerce had grown well during the lockdowns.

We dropped WA mineral explorers Mandrake (MAN.AX) and Enegex (ENX.ax) after their speculative pre-drill rallies of 2,053% and 1,900% respectively on the back of a huge find by Chalice Mining in WA.

After a high of 874% from our investment in promising tin and silver developer, Boab Metals (BML.ax), we also suggested a sale as the silver price went flat after a strong rally in 2020. Australian gold explorer Meteoric (MEI.ax) was sold after a high of 591% when the gold price rally also finished in 2020 and they had some disappointing drill results on their Brazilian properties.

We dropped WA mineral explorers Mandrake (MAN.AX) and Enegex (ENX.ax) after their speculative pre-drill rallies of 2,053% and 1,900% respectively on the back of a huge find by Chalice Mining in WA.

After a high of 874% from our investment in promising tin and silver developer, Boab Metals (BML.ax), we also suggested a sale as the silver price went flat after a strong rally in 2020. Australian gold explorer Meteoric (MEI.ax) was sold after a high of 591% when the gold price rally also finished in 2020 and they had some disappointing drill results on their Brazilian properties.

Q3 2021 We also exited platinum/nickel/copper explorer and developer Chalice (CHN.ax) after its monstrous discoveries in West Australia gave it a huge price gain of 3,960%… but only to watch it climb even higher after we exited!

Q4 2021 at year-end, we reluctantly down-graded Tasmanian tungsten mine developer, Group 6 Metals (G6M.ax – formerly King Island Scheelite – KIS.ax), from 10 bagger status to multi-bagger status. We still like G6M which had given those members who took up the private placement the club had arranged in October 2020 to a highest gain of 770%.

G6M’s, share price then fell back from its’ 35c high in H2 2021 after it took a long time to complete more-dilutive-than-expected financing. This financing however now means the company is now fully funded to put its high-grade tungsten mine on King Island back into production within about 20 months. The company is now de-risked, and by all logic, it should now rise towards 30-40c over the next two years making it a fairly risk-free 1-3x multi-bagger to comfortably park some money in.

Element 25 (E25.ax), apart from Bitcoin, E25 is our only surviving active ten bagger call from 2020. It has discovered and developed Australia’s largest on-shore manganese deposit in safe WA. It had a stellar 2,422% run-up from our original 11c call price in February 2020 to hit a high of $2.90 in April 2021, as it developed its discovery and went into production with a 42-year mine life.

However, it had some start-up mishaps in production and the share price slid painfully back down to close the year at $1.01. We believe E25 will sort their teething problems and make the profits they expect.

The price had already recovered back in early January as E25 just released a new scoping study on its additional high purity manganese opportunity which potentially adds a further A$1.5b in NPV, and an extra A$200m in annual cash flow to this tightly-held company. Its total market cap is still just A$220m.

We believe its vast high-purity manganese supply from a stable jurisdiction should soon encourage a large battery or car manufacturer to JV with them, as they all need a regular manganese supply to produce the ever-increasing numbers of EV batteries required in the car industry. Therefore we feel this stock can still increase 5–10 fold again from here. So, despite its strong gains already, we are leaving its 10 bagger call intact.

Our 2021 Calls

We made 19 ten bagger calls in 2021, five were cryptos and 14 were equities.

Uranium

Given our expectation of a major bull run in uranium over the next 24 months, we heavily stacked our 10 bagger calls with smaller market cap uranium stocks. These have traditionally lagged larger companies but have more leverage to rise further and faster, as previous bull markets have shown. We think the next big phase of the bull market won’t come until around April or so in 2022 after the Sprott Physical Uranium (SPUT) fund gets its NYSE listing.

Deep Yellow Option

DYLO.ax | CD: Jan 21 | CP: 0.190 | HP: 1.37 | HG: 621%

Our first call of 2021 was the option in Deep Yellow, the Namibian uranium developer. These geared options gave us a 621% high before the options’ big gains triggered their call-in by the company in October. We suggested members then switch back into the heads (DYL.AX) for the remainder of the bull run. Taking into account the higher alpha performance of the geared options we now only need them to just over double in 2022 to achieve a 10 bagger.

Elevate Uranium

EL8.ax | CD: May 21 | CP: 0.175 | HG: 349%

We called this Namibian uranium explorer in May, after some good comparative research work by member PaullyD. We feel EL8 is the most undervalued of the uranium plays on the ASX. It rewarded us with a solid 348% highest gain last year, and we hope for much more in 2022.

92E

92E.ax | CD: May 21 | CP: 0.260 | HP: 1.150| HG: 342%

We took a position in this promising ASX listed uranium explorer, with its properties in the eastern Athabasca Basin in Canada besides the major mines there. We were rewarded when they hit economic grade uranium in their first exploration outing, and we enjoyed a 342% high. We expect additional results to flow from their next exploration program beginning in 2022,

Aura Energy

AEE.ax | CD: May 21 | CP: 0.026 | HP: 0.365 | HG: 1,304%
AURA.l | CD: May 21 | CP: 0.039 | HP: 0.23 | HG: 490%
AEEO.ax | CD: Oct 21 | CP: 0.013 | HP: 0.23 | HG: 1,669%

Our real uranium winner is Aura Energy, brought to us by member Cyclebottom. This massively undervalued stock has a big JORC compliant uranium resource in Mauritania at the surface, plus a huge uranium and vanadium asset in Sweden. The stock was suspended on the ASX due to a takeover squabble in management and hence it missed the start of the uranium run. We suggested at the time that members buy it via its London co-listing Aura.L and they have been rewarded with a substantial 498% gain so far.

We then advised members to fight to get any of the unsubscribed for rights issue AEE.ax made prior to its expected suspension being lifted. Only some members managed to do so in Australia or via London - but only to encounter another three months suspension extension. Eventually, Aura was re-listed on the ASX in September and jumped like a coiled spring giving those members who put in the effort to get some of the rights shares a thumping 1,303% gain.

Lastly, we suggested newer members also buy the stock to allow them to take up the AEEO.AX loyalty options at 1.3c in October. This meant buying AEE stock to be eligible, and knowing it would fall when it went ex. However, those members with cojones who did so were rewarded in just three months with a stonking 1,699% gain by year-end. Despite these big gains so far, Aura remains one of our strongest buys for 2022.

U308

UWEFF | CD: May 21 | CP: 0.220 | HP 0.400 | HG: 82%

This Canadian and US-listed micro-cap explorer had two JORC compliant uranium assets in Argentina and Columbia, with around 35m lbs and only a US$6m market cap. It made its highest gain on low volume, as this very volatile stock bounced around last year thinly traded. By July it was temporarily suspended for non-compliance on the OTC, and then it sold off its Argentine asset too cheap in our opinion, and as only a few members had bought it – we downgraded it in August from a 10 bagger status to multi-bagger. This stock is not for the faint-hearted but could be a big winner when the expected next uranium bull phase fires up in 2022.

Zeus Resources

ZEU.ax | CD: Jun 21 | CP: 0.030 | HP: 0.120 | HG: 300%

What was potentially our most promising uranium play last year turned into a disaster. We arranged a 3c cash placement for members with this uranium shell which was being badly run by a big Chinese state-owned mining corp. We agreed with them to cash Zeus up and then inject the Livingstonia uranium asset in Malawi to revitalise it in time for the expected uranium bull run. They ran up from 3 to 12c, before it was rather harshly suspended by the ASX in September, for not meeting listing rule 12.1 for work standards. Due to Covid, and the suspension, we lost the Livingstonia mine rights to in-country developer Lotus Resources (LOT.ax) who bought it and have since been one of the better performing uranium stocks on the ASX.

Members who did not sell out on the Zeus run-up, are now stuck in this suspended stock. We have joined the board to help the battle to get the stock unsuspended. If we can succeed in doing so, we plan to raise new cash and then hopefully inject a new project that might get the stock running again towards 10 bagger status. We apologise to all members for this unfortunate delay and the compliance issue so far.

Firebird Metals

FRB.ax | CD: Feb 21 | CP: 0.200 | HP: 0.845 | CP: 323%

We called this Western Australia based manganese developer before its IPO debut. Post-IPO the stock ran up fast on good volume to hit the high. However, it has since slipped back to 40c over the year partly due to the travails of neighbouring Element 25, and partly as they have been busy drilling and proving up their asset. We remain bullish for more progress as they continue to develop their assets. Barring any disasters, we can still see this tightly held stock with its small A$20m market cap rising to between $1 to $2 in 2022.

Danakali

DNK.ax | CD: Feb 21 | CP: 0.290 | HP: 0.640 | HG: 121%

What can we say? With only a A$143m market cap, DNK owns the world’s biggest SOP (sulphate of potash — a natural fertiliser), magnesium and salt asset in Eritrea with a 200-year mine life. It is a deeply undervalued project, which is good for Africa and all humanity.

We first called it when some club members took out the A$4m position of a JP Morgan resource fund which was a big seller last February. The stock ran to its high of 64 cents, but it has since frustratingly stagnated, despite the potash and magnesium prices hitting record highs in 2021, this is probably due to the project being in Eritrea.

The price closed the year at 46c, despite it having 75% of its A$320m development financing in place and several massive international bidders seriously nosing around for a joint venture or buy-out.

We still love this project and expect it to be either funded or bought out in 2022. However, without any buyer showing up by year’s end, and management moving slowly, we downgraded it to multi-bagger status at year-end. We hope the share price can pick up some more momentum this year to better reflect its huge and unrivalled long term value and potential.

Errawarra Resources

ERW.ax, ERWO.ax (option) | CD: Mar 21 | CP: 0.250 | HP 0.401 | HG: 60%

Errawarra was basically a cashed-up listed shell, we called it so members could benefit from the free attaching option issue. For much of 2021 we waited patiently for a big expected deal to be injected in. Eventually, in late November, in the middle of a nasty bear phase, it hit the high. Then the long-awaited deal did eventually go in. It is a very prospective nickel tenement in Western Australia, immediately adjacent to Azure Minerals (AZS.ax) successful Andover project… and guess what? The price fell!

But chins up lads and ladies! ERW.AX remains well cashed up, with decent management, a most prospective large project and a miniscule A$8m market cap. Azure next door, with a smaller plot under development already, has a A$124m cap. Just one or two decent drill hits into any of the many electromagnetic (EM) anomalies (100% of Azure’s EM anomalies drilled proved nickel positive), and we expect this stock to jump well in 2022.

Ragnar Metals (Option)

RAGOC.ax | CD: Nov 21 | CP: 0.016 | HP: 0.029 | HG: 81%

The listed May 2023 options on this lithium prospector. In late November we suspected that a huge prospective lithium tenement almost in between the two biggest operating lithium mines in Australia might be acquired by this tiny A$14m market cap company. The two mines on either side of this new tenement are owned by A$1 billion+ market cap companies. So we called the listed options as a potential 10 bagger to try to get more gearing on the prospective price rise if the deal was done.

The deal did happen in late November 2021, in the same bearish late-year doldrums as when Errawarra did their deals - and guess what? …The price also fell! RAG.ax is now recovering nicely after its fall and currently showing a 30% gain so far. We have high hopes for this in 2022.

Industrial Minerals

IND.ax | CD: Jul 22 | CP: 0.200 | HP: 0.370 | HG: 85%

The company has acquired the right to mine large swathes of high purity silicon sands in Western Australia. They have a low-cost start-up model using sub-contractors, hence greatly limiting upfront Capex funding needs.

If their expected mined price for the sand – roughly A$25-30 per ton– and its sales price –roughly A$100-130 per ton – pan out, then IND, which hopes to mine over one million tons per year, could easily be a new 10 or even 20 bagger. It hit its high almost immediately post-IPO, but has since slipped back to end the year at 21.5c. We strongly suggest buying at these lower levels now and putting them away in the bottom drawer.

K-Tig

KTG.ax | CD: Jun 21 | CP: 0.450 | HP: 0.550 | HG: 29%

Our only industrial 10 bagger call in 2021: K-Tig owns a massively disruptive keyhole welding technology that cuts welding time and cost on thick metals by 90% over human workers. It has two legs to stand on, one is a slowly growing business of selling its welding heads – this is developing nicely in the US and Europe but won’t shoot the lights out. The other leg is getting involved in potentially huge projects that need much welding. It has linked up with Korean giant Hanwha, to hopefully get a share of their billion-dollar defence contracts.

KTG are also negotiating to win contracts in the nuclear decommissioning field in the UK. This means welding the thousands of thick steel boxes to hold spent nuclear waste. If they can win any of these huge contracts, it should 10 bag at least within 24 months.

This A$50m company can become a A$1 billion plus company if managed well. But holders need patience. After we called this stock, it shortly afterwards hit the high, mainly on our club buying in. It has since been dropping and closed the year at 30c for a 33% loss. This is our only ten bagger call significantly below its call price – but it’s also one we remain extremely bullish on in 2022 and beyond. We suggest members buy it at this lower price, put it away, forget about it and wait to reap the hoped-for rewards.

Cryptos

Unlike the junior resource equities, 2021 was a stellar year for cryptos and our six crypto calls helped maintain our high average returns in 2021.

Terra Luna Protocol Ecosystem

The star of our show last year was undoubtedly Terra Luna – brought to us by member TonyM, (now successfully building his dream beach house in Costa Rica.) A big thanks from many members to all those dedicated lunatics in the club for all their help introducing and explaining it to other members. You know who you are, and we are much indebted. Several members won their financial independence in 2021 (the main goal of ten bagging) because of your efforts and now we have some new 10 Bagger Club winners joining us to retire in Phuket.

Terra (LUNA)

Luna-USD | CD: May 21 | CP: 4.60 | HP: 103.332 | HG: 2,146%

Rising steadily and consistently after being called, Luna hit its peak the day after Christmas, on big volume (and volatility). We expect more good things from Luna in 2022 and feel it could reach US$250 or more as it looks like becoming one of the world’s first great De-Fi currency and banking systems. Luna remains a hold for us in 2022.

Orion Money and Nexus Protocol

Orion Money | CD: Sep 21 | CP: 0.050 | HP: 2.270 | HG: 4,440%
PSI | CD: Oct 21 | CP: 0.010 | HP: 0.466 | HG: 4,564%

These two Luna protocol junior coins were either won by members free in airdrops from staking Luna, or by jumping through hoops to get them at their IDOs (Initial Dex Offering), or in early trading. Both called coins performed outstandingly at first jumping up to their highs on good trading volume. They did fall back with the Bitcoin led crypto softness at year-end. We now have retired both calls as ten bagger as we feel it will take a while before they can outdo their previous highs and there are more vibrant and promising coins in 2022 to invest in.

Bitcoin

BTC | CD: Mar 20 | CP: 5,465.000 | HP: 68,789.625 | HG: 1,159%

This is our biggest and most liquid 10 bagger ever! Whilst it’s been a bit soft recently, this new finite asset should head up longer term. But it will be a volatile ride.

Ethereum

ETH | CD: Jan 21 | CP: 720.000 | HP: 48,91.705 | 579%

Both Ethereum and Bitcoin now remain longer term holds for us, both have strong liquid positions to hopefully grow your wealth over the longer term and we expect both should continue to move higher in 2022. However, with volatility and probably slower than many other of the lesser and more technologically vibrant alt-coins, which is where we expect several more promising 10 baggers should be found in 2022.

Shopping IO

SPI | CD: Aug 21 | CP: 49.300 | HP: 83.400 | HG: 69%

A utility token designed to allow people to shop with cryptocurrency, access discounts and other benefits. We were tipped that there might be a big run in SPI, so we promptly called it, shortly afterwards it rose to a high of 69%. In this case, we kinda shot first then aimed, (usually a mistake) and as we did our research and soon saw this was more like a gift card company than a De-Fi coin, we promptly retired our ten bagger call and suggested members exit. Since August SPI drifted back to close the year at 22 cents. We’re out.

Our Investment Outlook For 2022

Equities Outlook 2022

2022 does have some dark clouds hanging over it. There is the Fed’s stated intention to raise interest rates and cut back quantitative easing to rein in inflation. But we don’t think they have the political cojones to do it while Europe and China still ease. There are ongoing Covid issues and global political tensions. But most worrying for us is the threat of a cooling (or bust?) in China’s housing market and its infrastructure build-out rate. Why? That could soften the prices of some of the industrial metals. Just look at what’s happened to iron ore prices over the last four months. This can be bad for several of the metals developers we are invested in.

However, after many years of investing, and often listening to breathless bears telling us the sky will fall, they are usually wrong. Equity markets usually keep rising and do need a wall of worry to climb higher and stay healthy. It’s when everyone becomes sure they will go higher — and everyone is fully invested, that they usually collapse. We are not there yet, but there could be a 10-20% correction any time in the overbought main indexes.

The 10 bagger stocks we have picked however are mostly early-stage developments with good assets, competent management which should hopefully continue to develop their own thing in the longer-term creating wealth and therefore hopefully, be less affected by volatility in the bigger markets.

We remain net bullish for 2022 – but the waters are looking more stormy than last year and we suggest members try to keep 10% or so of their powder dry to be able to pounce on unexpected falls in some stocks. (Remember: “buy them when you hate them”, or “buy them when you’re scared”.)

Crypto Outlook 2022

The crypto space will soften if the main equity markets correct. Mainly Bitcoin and Ethereum crypto’s big daddy and mummy. The children – the smaller alt-coins – will also take a bath if that happens, but they remain too vibrant with many of the smartest guys in the room just pushing on regardless, creating the new world of our financial future. The adoption rate of new De-Fi blockchain-based technologies is the fastest ever in all history. No one can stop this disruptive technological progress now. The genie is out of the bottle, and De-Fi is the future, so we advise all members to do the work to try to learn this new financial ecosystem better.

Club News

In 2022, we intend to launch an additional service - to be called Super Stocks. This will be two or three portfolios of a more conservative and diversified nature - the sort of investments you can put in your retirement fund (known as a ‘super fund” in Australia.)

1. The first shall be a portfolio based on less risky international and ASX stocks or major cryptos that we believe can be 10 baggers, or over, in five years or so.
2. Another will be a portfolio based on high-dividend paying stocks – stocks or convertible bonds or cryptos that should be able to provide a 20% or so annual dividend return and hopefully some decent capital growth too.

Lastly, a big thanks to all members for joining and supporting this new financial information venture, and particularly to those members who so kindly volunteered to assist with admin, research, the monthly Wrap, and particularly to those who helped us all find some cracking good 10 bagger investments over the last 22 months. You know who you all are. Roll on 2022!

We already have several new potential 10 bagger and multi-bagger calls we are researching and working on for 2022. These will be announced as soon as appropriate. To get into these calls early, and maximise any profit – you simply need to join us.

Disclaimer

Please be aware that past performance is no guarantee of future performance. 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.

Performance Charts

92E

AEE

BTC-USD

Danakali

E25

IND

KTG

LUNA-USD