2 Recent Buys

BuySell

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.

2 Recent Buys – BBB, KL

BuySell

A quick update on a couple of purchases in my portfolio adding to my existing positions.

  • On Friday, I added 4,000 shares in Brixton Metals Corp (BBB.V) @ C$0.52. Couple of weeks ago, I initiated a position in this microcap silver/gold/cobalt exploration company. Following my purchase, the stock prices shot up, but finally pulled back last week after it was disclosed that $4M was raised in a private placement. The PP deal consists of shares at $0.50 and flow thru shares at $0.55, in addition to warrants exercisable at $0.70 for 24 months. That sounds like a decent floor price for me and I decided to add on the pullback bringing my total position to 9,000 shares with an average price of $0.46.
  • Yesterday saw a huge reversal in the precious metal (and base metals as well) miners performance. It turned into a bloodbath at the end of the day and the GDXJ (junior gold/silver mining ETF) fell close to 10%. The space has been acting extremely that is confounding everyone as there is a disconnect from the metal prices — gold and silver prices have been climbing as the equities fall. This was too great an opportunity to pass up and I decided to add buy 230 shares in Kirkland Lake Gold (KL.TO) @ C$8.79. I put in a low-ball offer at $9 after seeing a 8-9% fall in shareprice, but managed to get executed even lower — I love flash crashes! 🙂 For those unaware, this is a newly merged company between Kirkland Lake and Newmarket Gold forming a new mid-tier company with approx 500K oz in annual production. The jurisdictions are as secure as they can come – Canada and Australia, has a fantastic management in place and the board is chaired by none other than Eric Sprott. New discoveries and extensions of mineralization show nothing but great news for the company and this pullback was a great opportunity for me to add shares. After this purchase, Kirkland Lake becomes one of the largest holdings in my portfolio.

Full Disclosure: Long BBB.V & KL.TO. Our full list of holdings is available here.