Thursday 4 March 2021

Trying to Build a 10-Bagger

Evolve or Die

This blog started as an experiment when I was toying with the idea of starting a mining newsletter.  I figured that if I was researching junior mining stocks for my portfolio that I could potentially leverage/monetize that research by sharing it with others.  In addition, I wanted to use it as a forum to help junior mining investors navigate the pitfalls of the sector.  I got great feedback and enjoyed posting on the blog.

But circumstances changed and the newsletter idea and the blog were put on ice. Instead my focus shifted to running mining companies.  In March 2019 I became Interim CEO of AbraPlata Resource Corp. (TSXV: ABRA / OTCPK: ABBRF), which had run out of cash and was defaulting on property agreements.  I was tasked with cleaning it up 💩.  

I put my own money into ABRA because I recognized the potential of the silver-gold project that the company owned.  The good news for me and any of you that followed me into ABRA is that it is now a great, smoothly running company with a market cap of CAD$170 million. 🚀🚀🚀

Why were we so successful with AbraPlata?  Three key factors:

1. assembling a great team

2. having a project with multi-million ounce potential

3. luck - silver prices went from $15/oz to $26/oz.

Junior Mining Stocks - Investing or Gambling?

I think putting money in junior mining stocks is more akin to gambling than investing.  Poker is a good analogy because your luck will depend on the cards you're dealt (property geology and jurisdiction), your poker skills (due diligence and experience), and the other players at the table (company executives and promoters).  

Few other sectors have the potential for 10-baggers and that's what draws people in, much like a high stakes poker game.  Picking the right junior mining stock can be life changing.  But whether you win the game or not depends on luck, timing, and making good picks.  My goal is to skew the odds in my favor so that my fate is not left in the hands of lady luck.

Trying to Build My Next 10-Bagger

AbraPlata has been a 10-bagger for me and I continue to love the company and its potential, both as an investor and as Chairman.  It's like my first child.  But AbraPlata has a baby sister now.  

I'm CEO of Canstar Resources Inc. (TSXV: ROX/OTCPK: CSRNF) which is exploring for gold in Newfoundland.  My goal is to make Canstar a 10-bagger and this blog will serve as a journal detailing that journey.

I'll try to post periodically on this blog about the process of trying to build a 10-bagger company from the ground up.  I realize these posts won't appeal to everybody, but I think those of you outside the mining industry may find the insight useful for selecting mining stocks in order to improve your odds.  In return, if you like what I'm doing at Canstar I ask that you consider becoming an investor and going along for the ride.

Of course there is no guarantee that Canstar will ever be a 10-bagger.  Wouldn't that be nice - a guaranteed 10-bagger?  It will take luck and perseverance.

I'll also periodically post my thoughts on things like markets and metals prices.  "Experts" say you can't time the market, but I don't believe that.  Hint: I think we're near a bottom for gold and gold stocks.  At the very least, its a much better time to buy gold stocks now than it was at the peak seven months ago.

Trying to Build a 10-Bagger

Evolve or Die This blog started as an experiment when I was toying with the idea of starting a mining newsletter.  I figured that if I was r...