How to Be a Contrarian In the Resource Space

Buy winter coats in the summertime. 

Be a contrarian. 

Buy low. Sell high.

How to Be a Contrarian In the Resource Space.

It’s easier to give cliche advice – that is actually very good advice if you want to make real money in the junior resource space – than it is to act on it.

While some companies are slashing marketing, exploration, and sometimes even salaries, others are busy doing what the better companies in the space do with short-term bear markets within longer-term bull markets: adding value.

What's the smart money doing? Looking for companies that have scale, are adding value, and have competent management teams that can advance assets in any market.

Companies like Aldebaran Resources (TSX-V: ALDE)(OTC: ADBRF), which just secured a C$10.3 million strategic investment (at a premium to market, no less) from global mining giant South32.

The agreement allows South32 top-up rights as well as allowing it to nominate a director to the board of directors if it obtains a 12.5% equity interest in the company. 

Sounds like the kind of moves made by a major interested in one day paying a lot more for a massive copper-gold treasure that’s only growing in size and grade.

In the gold space, Revival Gold (TSXV: RVG)(OTC: RVLGF) continues its march towards at least four million gold ounces. The company is drilling its high-grade Joss target following up a spectacular intercept of 4.34 g/t gold over 110.6 meters.

Revival has already outlined four million gold ounces across all categories and, given its hit rate and a better understanding of the geological model, five million ounces may be the tip of the iceberg. 

In the lithium space, Patriot Battery Metals (TSX-V: PMET)(OTC: PMETF) has multiple rigs turning at its 100%-owned district scale Corvette property in Quebec. A region that’s seeing an influx of investment and is quickly establishing itself as an important battery metals hub.

The company is focused on delineating what I believe will be an initial resource estimate demonstrating at least 100 million tonnes of roughly 1% lithium. 

There’s also an active field program that I suspect will yield new discoveries of lithium-bearing pegmatite that could transform Corvette into one of the largest lithium deposits in the world — and send Patriot shares much higher.

In the short term, I believe the lithium and uranium sectors will be the first to outperform the market. Companies with discoveries and the ability to demonstrate scale to the market will not only attract speculators’ capital but also the attention of end users looking to secure future supply.

Nick is helping finance a tiny junior that just made a lithium discovery and happens to be surrounded by a mining giant.

He and his subscribers have funded multiple early stage lithium companies in the past few years and made thousands of percent returns. 

The company he’s funding now has a ~70,000 hectare land position in the Lithium Triangle of Salta, Argentina, across five projects. 

Two of the projects are adjacent to advanced-stage projects that have resources on them, including one that Rio Tinto is taking into production with Ford as an offtake partner. 

You get to buy a share of this company for less than it’s currently trading in the market. And you also get a full warrant good for two years. 

But you must be a member of Hodge Family Office Private Intel to participate in this private deal and the others he recommends. 

As with all private placements, time is of the essence. You’ll need to act by August 5th to participate.

Let's get it!

Gerardo Del Real

Gerardo Del Real
Editor, Resource Stock Digest