3 Recent Buys – KL, CBW, ABCN

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Here’s an update on some recent purchases in my portfolio. For this round, I have one purchase adding to my largest position in the portfolio and two new positions and a new endeavor in a new sector.

First purchase: I added to my position in Kirkland Lake Gold (KL.TO) after the continued pressure. The gold market is seeing headwinds in the last few days and KL got beaten down on no news. In fact, the cards are all in favor of KL outperforming and leading the pack in the mid-tier sector as the amazing news keeps flowing. The financials are stellar, the flagship mines are running smoothly, grades are also improving on a regular basis, new discoveries provide added tailwinds, new partnerships are being formed securing future production. It is really hard not to like this company. Its already the single largest exposure I have in my portfolio and I continue to average UP — something that most investors do not do. I added 100 shares of Kirkland Lake Gold @ CAD$15.25.

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2 Recent Buys – KL, FIH.U

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A quick update on a couple of purchases in our portfolio.

First purchase: I added to my position with in Fairfax India Holdings (FIH.U.TO). I added 100 shares @ $17.50, bringing down my average cost basis slightly lower. This is a company that I initiated a position in early September and provides me with an exposure to the Indian market. I wont repeat and will simply point to the other post for details.

Second purchase: Last week’s move down also gave me an opportunity to add more shares in one of the strongest performers in my portfolio and my largest holding overall. I added 100 shares in Kirkland Lake Gold (KL.TO) at C$16.75. So far, this stock has been on fire and I have more than doubled my initial investment, which I started about a year ago. Although I am tempted to sell and take some profits off the table, the good news just keeps rolling and I cant help but just buy more on this promising company. Some highlights on why I continue to buy Kirkland Lake Gold

  • Chaired by none other than Eric Sprott, KL has top notch leadership. The company is now well on its way to become the top mid-tier company in gold producing space
  • The Fosterville project has turned into a behemoth and the grades just keep improving. In addition, the Macassa mine also continues to deliver some great results
  • The strategic investments keep coming — buying equity interest in companies like Novo Resources (NVO.V). Novo is a company that slipped through my fingers and has seen some explosive returns lately, but atleast I can take refuge in knowing that as KL shareholder, I am still seeing some benefits from Novo’s move and resources in Western Australia.
  • Eric Sprott still continues to buy shares in KL hand over fist. His last purchase was 200K shares at $15.71. So, more great news on the way? I bet it is.
  • The company is also maturing and shareholder friendly with dividends (this purchase adds $4 in annual dividends — nothing to write home about) and share repurchases. CEO Tony Makuch has continued to reiterate over and over in every presentation that the management and board firmly believes that even at these prices the stock is severely undervalued.

What do you think about these purchases? Share your thoughts below.

Full Disclosure: Long KL.TO, FIH.U.TO. Our full list of holdings is available here.

Recent Buy – B2Gold

A quick update on recent activity in our portfolio.

This week’s drawdown allowed me to add to my position in B2Gold Corp (BTO.TO)(BTG). I hold both US and Canadian listed stocks in my portfolio, and in this instant, since I had more US$ available, I added to my US listed entity. I added 500 shares of B2Gold Corp (BTG) @ US$2.55.

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Recent Buy – B2Gold Corp

Another transaction in my portfolio last week. Gold prices have been taking a hit lately and I see a good buying opportunity, even though I am sitting at full positions in most of my gold equities. However, the valuation looked attractive enough for me to add more and possibly trade around my core position.

Last week I added to my B2Gold Corp (BTG)(BTO.TO) position. In this particular case, I decided to buy the US-listed stock — ticker: BTG; but to keep things simple, I will treat it as the BTO.TO in my portfolio page, as it is the same company. I bought 500 shares of B2Gold (BTG) @ US$2.93.

B2Gold is one of the larger junior mining companies. The Fekola project is arguably one of best gold mines going into production this year — and is slotted to produce upto 50,000 oz of gold to begin with before ramping up next year. For the most part, I think investors are under appreciating the size of this project and the potential of B2Gold. The management is fantastic and has a proven track record of building and producing gold mines in the past. This is the same team the built and sold Bema Gold (that’s where the ‘2’ in B2Gold comes from) to Kinross Gold in 2007 for $3B.

This is my 4th purchase of B2Gold shares (see purchases #1, #2, and #3). I now hold a sizeable position in B2Gold, making it one of my largest holding in the portfolio. Once the share prices recover after this slump in metal prices, I might swing trade a bit or write covered calls to take some profits. But I will not be forcing any moves just for the sake of it. For the long haul, I am happy holding the shares as we are still early in the gold bull market.

Full Disclosure: Long BTO.TO, BTG. Our full list of holdings is available here.