Red Day in the Market: Juniors Hit by Landslide

Author

Wingman
February 14, 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.

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Yesterday many companies experienced some strong selling pressure. Some bucked the trend (đź‘€ below).

Besides the playful picture, there was quite horrendous news that should never have happened. There was quite literally a landslide (“large slip”) that was made known yesterday. We hope the missing miners will be found. Watch here 👇

DENVER – SSR Mining Inc. (Nasdaq/TSX: SSRM; ASX: SSR) (“SSR Mining” or the “Company”) announces a suspension of operations at the Çöpler mine as a result of a large slip on the heap leach pad. This event occurred in the morning of February 13, 2024 at approximately 6:30 am EST, and all operations at Çöpler have been suspended as a result.

Watch the video as it indeed is a “large slip”. At the time of writing, 9 miners are missing after the landslide.

Read Mark’s second tweet.

You know it is not a great set of results if they do not have a highlight intersection in the headline.

Yesterday was not an ideal day to release less-than-stellar results. It's evident that shareholders were expecting more, considering it closed yesterday at C$0.125 ⬇️ 0.305 (70.9%).

Watch the video here of the pilot process.

I was initially hesitant about this news because I approached it with the mindset of a gold speculator, viewing the battery-grade purified phosphoric acid (PPA) as if it were metallurgical results, focusing on what they could recover from the ore. However, this is different. What matters is the level of concentration; all that matters is that it reaches 85% concentration to be considered battery-grade. Which they did.

This is very positive news because their whole “pitch” is focused on the LFP battery cycle in North America. Would’ve been less than ideal if their phosphate could not get to battery-grade phosphoric acid. So we are still holding through the selling pressure as the story is further derisked. $PHOS closed today at C$0.285 ⬇️ 0.01 (3.4%).

David Fincham, Highlander’s President and CEO commented, “Federico joins the Board after a transformational year for the Company. During 2023, Highlander acquired the La Estrella silver-gold project, and executed a share purchase agreement with SSR Mining Inc for the bonanza grade San Luis gold-silver project, both in Peru. With dual Peruvian and Canadian nationality, Federico will provide special insight to support our community and government engagement plans, and his local knowledge is complemented by extensive international experience and expertise in the government, regulatory, environmental and public relations areas. His track record of building long-lasting and mutually beneficial relationships with a wide range of stakeholders will be extremely valuable as we work to add value to our project portfolio. On behalf of the Board, I welcome Federico to the team.”

Like the potential here, not thrilled about the warrant overhang and we are not certain how much they will raise and on what terms to acquire the San Luis project from SSR Mining.

No position but watching closely and like the addition to the Board of Directors.

Some companies on our watchlist that are getting pretty silly here:

Adventus Mining – C$0.235 ⬇️ 0.015 (6.0%)

Bravo Mining – C$1.71 ⬆️ 0.01 (0.6%) [Green, but check chart]

Fireweed Metals – C$1.03 ⬇️ 0.04 (3.7%)

First Phosphate – C$0.285 ⬇️ 0.01 (3.4%) [We do own]

Generation Mining – C$0.215 ⬇️ 0.02 (8.5%) [CEO bought more yesterday]

Magna Mining – C$0.44 ↔️ 0.00 (0.00%)

Star Royalties – C$0.26 ⬇️ 0.005 (1.9%)

There are more, but these are some that are just starting to get really silly (in our opinion). Not investment advice.

Also, two of our companies were holding strong during a rather red day yesterday. Sendero Resources is holding and Fathom Nickel is bucking the trend with large volumes. Both are drilling and at that exciting time where assay results can be expected in the foreseeable future. Both are going for some big targets so very exciting times for both.

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