- Miners' Wingman
- Posts
- Hercules Gets A Haircut 💇♂️
Hercules Gets A Haircut 💇♂️
Wingman
January 03, 2024
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
If ever compensated for an article, it will be mentioned here.
Welcome back to the grind!
Hope you were able to enjoy the time with loved ones and are eager to see what 2024 has in store for us.
Now some people are lucky enough to have extended their vacation and we hope you are enjoying every minute of it.
Regarding the markets, not a whole lot of news..except if you are a Hercules Silver shareholder.
On Tuesday, $BIG Closed at C$0.82 🔻0.56 (- 40.6%)
Well hopefully like a bad haircut, it grows back with time.
Clearly, the market was expecting better results, swiftly erasing most of the positive momentum from Q4 of 2023 within a single day. Albeit, $BIG did have a phenomenal move as one of the few success stories in 2023.
Now how many are making decisions just based on headlines? Surely, there are some speculators with trigger-happy fingers.
Reflecting on a sentiment akin to Rick Rule's, though slightly paraphrased in absence of the exact wording, he highlighted that a 50% loss doesn't merely retain one's stance as a holder; rather, it positions them decisively as a buyer or a seller.
CEO.ca - Trending Companies Page, Jan 2, 2024 at 4:30 PM ET
Well, it looks like many people did decide to buy or sell, given that the average daily volume was 791% of the average.
We currently hold no position in $BIG, despite its significant potential. However, does it genuinely justify its current market cap after today’s haircut?
These opposing views define the market; some advocate a positive outlook, while others remain skeptical. If you have a position, we'd appreciate hearing your thoughts on whether you were inclined to buy or sell.
CEO.ca - AMQ SEDI Filings
CEO.ca - AMQ Board
Gotta love ceo.ca
It looks like Teck Resources is seeking to add value through JV’ing with exploration companies. Two new JV’s to start 2024. One in Peru and one in Argentina.
$ABRA announced a JV with Teck Resources. Large project with some large commitments.
The Agreement provides that, subject to certain conditions, AbraSilver and Teck will enter into the Option Agreement to grant Teck an option to acquire an 80% interest in La Coipita by funding cumulative exploration expenditures of US$20,000,000 over a five-year period, making staged cash payments to, and an equity placement in AbraSilver totaling US$3,000,000 (including an initial mandatory payment of US$500,000), and making up to US$6,300,000 in optional cash payments in respect of amounts payable to the underlying Project vendors. Following an initial transition period during which AbraSilver will support field operations, Teck will act as operator for the duration of the Option.
If you’re interested in a chat forum debate on the pros and cons of JV’ing a project, we quite enjoyed reading the $ABRA thread on CEO.ca after this news crossed the wire.
Under the terms of the agreement, Teck has a first option to earn a 55% interest in the Cobreorco project over three years by completing US$4 million in exploration expenditures and making cash payments totalling US$500,000. An initial cash payment of US$80,000 was made on signing the agreement. The start of the three-year term commences once the permits and approvals required to commence a drill program are in place.
On exercise of the first option, the parties intend to form a dedicated holding company which will own the Cobreorco concessions, and thereafter Teck has a second option to increase its interest in the Cobreorco project to 75% over the next three years by completion of a further US$6 million in exploration expenditures and additional cash payments of US$600,000.
If you’re not a subscriber, we hope you will consider becoming one to show us that you value this content. As a free subscriber, you gain access to exclusive content, such as our Weekly Maintenance Checks and insights on our stock transactions.
Disclaimer: Wingman’s portfolio is not of substantial significance; rather, it serves as an investment journal and a platform for performance review. It aids us and hopefully our subscribers, in gaining a comprehensive understanding of this market, ensuring our deep immersion in all the ongoings within the mining and exploration space.
Yesterday, we increased our position in a company where we already have exposure because the float is simply too tight to pass up. Subscribe to read further details.
Reply