O3 Mining has been a perpetually disappointing developer, but they have good land and good mineral assets. They’ve done a poor job of marketing, and we used to cover them here at the KER.

In early 2021 I remember being on a Zoom call with Jose and some IR lady that isn’t even there anymore after they had already canceled their sponsorship with us, where we were supposed to brainstorm ideas that could work if we rekindled a marketing effort. I had mentioned a few ways they could improve telling their story (as it wasn’t really that clear in prior discussions or even their marketing materials at the time how all their assets tied together in a cumulative sense, the economic importance of it to larger companies, and why investors should be giving them a premium versus a discount). I mentioned that they had a lot of strengths in their team, mineral assets, and potential but that they could improve their messaging around playing to their strengths.

The IR lady gave my comments an eye roll and snicker, and she was clearly instant messaging Jose internally and then he snickered. (that is the only time on literally hundreds of Zoom calls that I’ve been on that anyone gave me an eye roll) and she never even addressed the comments or suggestions in a professional way or at all really.

They got off that call and went on to try a bunch of other things on other platforms that didn’t work out, because they were still using the old playbook. They ended up spending magnitudes more in marketing dollars to some pump shop groups that did nothing more but create a brief pop and then another drop in the stocks, but blew through a lot of funds. I guess at least they’ve been trying to market more, and honestly wishing them well, but maybe they should have done a bit more listening during a brainstorming exercise and less snickering and dismissing.

In reality, many quality development stage assets and advanced exploration assets with defined ounces in the ground are trading at ridiculous valuations and have been the last couple of years, so O3 Mining is not the only company that has underperformed when they should have had more upside optionality to rising metals prices.

There are more than a dozen or so gold stocks with a million or more ounces in the ground, that have good land, in a good jurisdiction, and good teams, but their stocks have languished in this market, but I believe they are the next good crop of takeover targets by the larger producers that need to bolt on more development projects to grow.

Hopefully we’ll see some reratings in these stocks that already have banked success in the vault of the Earth, and then after they climb higher in share price, some more quality takeovers, versus take unders.

Hi SF, Morris doesn’t have my list either and when I read his reports the stocks he features always seem to go down. There are no experts! He has been painting a rosy picture for a long time. DT

Hi DT. Good comments on Morris’s work. I’ve been following him for about a decade now, off and on, and like every technician or fundamental analyst on the planet, he has both good calls and bad calls. In balance, I think he is very good at spotting potentially good risk/reward setups for trading and runs more of a trading service, but he gets a bit wild with the up and down arrows. Haha!

He used to only follow resource stocks that were included in ETFs like the GDX, GDXJ, SIL, SILJ, URA, URNM, COPX, etc…. or the ETFs themselves. He also really likes trading the leveraged ETFs like JNUG and NUGT, etc…

Santacruz Silver is still a producer, like Cameco, or Magna now, so those are far more advanced than penny dreadful junior drill plays. I believe the explorers or developers that he has followed before were also included in the ETFs or had massive volumes as a trending flavor-of-the-day herd stock.

However, to your point, I knew a few people that subscribed to his service, and their critique was that he was mostly into trade setups in larger more liquid names, and not as interested in charting the smaller junior companies that they held in their own portfolios, so I think that is a fair assessment.

His service seems best for those folks that are more active and really like swing-trading over a couple days or weeks, or position trading over a couple of months to half a year. He is not a newsletter writer catering to buy and hold strategies for swing-for-the-fences junior speculations though…. but there are plenty of other folks that fill that niche’.

I used to post Morris Hubbart’s charts here on every weekend show for years at the KER, along with a few other technicians like Ira Epstein, Gary Wagner, Avi Gilburt, Gary Savage, etc… but I’m so busy with the content creation here now and writing for a few outlets myself these days, that I’ve not had the time to post here on the blog as much.

Today I had 2 cups of coffee with healthy addition of vitamins, and this is the first Saturday where I’ve got some actual free time since I can’t remember when… so I’m going to work on cranking out some Substack articles and post them here. Stay tuned for more rants! 🙂

Yes, interesting on all fronts DT.

Yeah, that Montage / Sanu Deal is very intriguing as to what the gameplan is there.

As Brian Leni mentioned, it was a curious decision for a junior gold developer to take money that could be going into the ground and decide to invest it into a position in another gold explorer, but maybe there are synergies in the background that we aren’t aware of in the public yet, or a potential takeover offer coming down the road. Maybe it was direction from the Lundin Group? Who knows? We’ll see how it plays out moving forward, but there had to be some strategy behind this deal, but it is unclear if investors in Montage were in the stock for that kind of a transaction.

The point being when you invest in a stock, you are backing the decisions management is making, and sometimes there are brilliant positioning decisions made ahead of a developing trend, and other times companies are picking up more assets and it is unclear why for some time afterwards and uses up available dry powder that could have been deployed differently. We’ll just have to see how this ends up playing out and is received by shareholders and the market.

I don’t have a dog in the fight anymore with Montage, having exited my position and already having rung the register on the big run up after the Lundins came into the stock and we saw that big surge higher. It’s a quality company and project for sure, but I saw the opportunity to rotate those winnings into other stocks that haven’t had their big runs to the upside yet.

As for Cantex, yes, an interesting Zinc, silver, and base metals stock that just got more interesting with the recent Chinese ban on Germanium exports. I used to be positioned in (CD) a handful of years back during the Zinc mania phase, but exited years ago. Looking at where it is valued today, yes, it does look like an interesting value proposition. Good trading to you DT!

Bandhari might know what Montage is up to with that investment

Hi Ex, Canada has lost faith in this Liberal Government they are anything but pro-business, a lot of investment that would have stayed here is instead flowing to the US. MONEY ALWAYS GOES WHERE IT IS LOVED. That by the way includes American money that is now staying at home.

Personally, I wouldn’t invest in CDN natural gas and oil markets until we get a government that welcomes business, that will happen in 2025. DT

Hey Ex, I liked your “GREEN” eye in the eye of the storm, it suggests we are about to make money. Your glass is forever half full! DT 🤣

The NFC will have the SB winner this yr.

Yes, great sport amazing athletes. Don’t know about Bills, they have a history of losing in the big game.