Another quick update on a few recent purchases. This market is giving some great buying opportunities in the resource sector and I continue buying and adding more to my portfolio.
- I added to my position in Nevsun Resources (NSU). For this particular transaction, I put my US$ to work as I had more US$ cash in my investment accounts, but for all reporting purposes, I will simply include the TSX-listed entity in my portfolio page. I bought 1,000 shares of Nevsun Resources (NSU) @ US$2.13. Nevsun is a top tier copper producer and has interest in two massive mines, one in Serbia (Timok) and the other in Eritrea (Bisha). The latest earnings release painted a bleaker picture for Bisha than expected, and timelines have been revised to later dates for Timok. The company also has a new CEO and it is clear that the previous leadership was sitting on these problems for too long hoping to sweep things under the rug. The new CEO has decided to rip the bandaid off and set things in motion by taking the right steps. The company still pays a paltry dividend, but I expect that to get cut in the coming days. Better to save the cash and put it to better use than distribute it to shareholders. The shock sent the stock price down 20%, and it was the perfect opportunity for me to load up. As is the case with the resource sector, the mines and resources are still there, and investors are being too shortsighted for a project the scale of Timok, which is a fantastic tier-1 resource.