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June 14, 2024

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Good Guy Wrap: Who’s moving up, who’s good value, who you should burn

So we’ve been messing with this new retail investor tool/platform that, frankly, has a lot of people talking – mostly wondering when they’ll get to play with it.

The answer to that, yesterday, was by the end of the month. Then we decided to build something that would make it twice as useful so now the answer is.. six weeks? Maybe eight?

Anyways, the platform in its alpha form is really doing a good job helping us to find good deals, find the ruptures in bad deals that look good on the surface, and zero in on who’s blowing through too much promo cash, or has as good story that isn’t being properly told, or who has too many Inwentashs in their deal.

The BCSC has decided guys that do what I do need to show their whole ass at the top of the story, so PLEASE BE AWARE SOME OF THESE COMPANIES ARE CLIENTS. We got a badge made up and everything [see right] so you’ll never wonder again:

Let’s start with the GOOD GUYS DOING GOOD:

ONE MAN AGAINST THE WORLD:

Ashley Gold (ASHL.C) is a one-man show, mostly. Darcy Christian has been written about often here, and both runs the company, signs the cheques, and lifts rocks. Dude has a nice gold project that needs more work than he can cu

rrently pay for to properly progress, but Darcy has believers, and one of them brought him a uranium project that was, many moons ago, set on a path for production until uranium went out of favour.

Darcy has now got his hands on that deal and instantly jumps from ‘under-funded prospoector’ to ‘under-funded uranium deal that only needs a bit of work/paperwork to get it super close to churning again’ and we like that shift. So does his shareholder base, which is nibbling away.

Darcy does need to raise some money but has been loathe to do so at a $2 million market cap.

Fair enough. Here’s his financing history:

FINANCINGS:

  • April 29, 2022: $700,000 at $0.10 per share, with each share purchase warrant exercisable at $0.30
  • July 4, 2023: $361,404 raised through a non-brokered private placement of 5,162,915 units at $0.07, each unit comprised of one common share and one share purchase warrant exercisable at $0.12
  • October 4, 2023: $300,000 raised by issuing 4,166,667 Units at $0.072, with share purchase warrants exercisable at $0.12
  • December 4, 2023: $77,751 raised through a non-brokered private placement of 1,036,680 flow-through units at $0.075

That’s a dude who isn’t killing his investors through dilution, but he could use a big boy to come in and shove him over that 12c warrant exercise level.

Anyways, we like the property. Here’s some more on that:

PROJECT: Sahara Uranium-Vanadium Project

  • Metals: Uranium, Vanadium
  • Location: Near Green River, Utah, Emery County
  • Acreage: 40 km² (10,000 acres) as part of the larger property
  • Exploration Spending: $10-15 million estimated for historical drilling (100,000m drilled historically)
  • Historic Holes/Permitted: Information on exact numbers of currently permitted holes not provided; historical extensive drilling noted
  • Recent Work: Planning for modern confirmation drilling (1,000-3,000m) to potentially establish a compliant resource
  • JV Partners: Potential for JV, especially with nearby processing facilities looking for additional ore sources
  • Neighbours: Near Western Uranium and Vanadium’s new processing facility
  • Compliant Resource Details:
    • Inferred: Potential for >2,000,000 lbs of eU3O8 (non-compliant resource estimate based on a Master’s thesis)
    • Indicated: Not mentioned
    • Measured: Not mentioned
  • Feasibility Details: None
  • PEA Details: None
  • Production Tonnage: None
  • Project Origin: Developed in the 1970s and 1980s; acquisition details not specified
  • Qualified Person: Mr. Shannon Baird, P.Geo., Exploration Manager

What do we like about this?

  • Well the size of the project is nice.
  • We like that it has a whopping isx figures of metres drilled previously, good for at least $10 million in exploration costs that ASHL didn’t have to cover.
  • And we like that it’s got the bones of a compliant resource, should Darcy do some basic drilling, and that he plans to do just that.
  • And we like a project in Utah, because that’s a top 5 mining jurisdiction.

And in our internal progress level system, this deal gets ASHL from a level 3 to a mid-level 4, which is a big step up.

So as ASHL moves from $0.07 to $0.08 to $0.09, we think you should take a good look.

Up 13% today.

WEED FOR GOOD AND NOT EVIL: BC Bud Corp (BCBC.C)

We keep telling you about this lot and they keep proving us right. While Canopy Growth Corp (CGC.T) is taking death spiral financing to try to survive long enough for US weed laws to change (they won’t, laws don’t change in the US for easy things right now, let alone hard things), BC Bud Corp has attracted a nice cadre of investors who are in long, believe in the model, and are marching the stock upwards in healthy steps.

From $0.15 to $0.07 in two months is no small feat, and bucks the overall weed trend.

Don’t get honey dicked by CGC claiming they’re doing a big raise to capitalize on US legislative rumour – the people buying in are the same assholes that killed the weed industry back in the day with predatory loans that could never be repaid. Take a bow, MM Cap.

Not a client, but full disclosure, they have been before, and we’ve been talking, AND I’ve been buying.

ZINC FOR THE ZINC GODS: Emerita Resources (EMO.V)

This baby is en fuego right now, and it should be. They’re doing a mettallurgical test run on their Iverian Belt West property and showing zinc at good grades in concentrate and recovery, and that reveals their project is likely as good as those surrounding it, which are all monsters.

BUT HERE’S THE HIDDEN TREASURE (again, from our new platform):

Emerita Resources Corp. is involved in a significant legal dispute concerning the public tender for the Aznalcóllar Project in Spain. The company believes that the tender process was improperly awarded to one of its competitors, Minera Los Frailes SL, a belief that stems from allegations of corruption and improper conduct by officials from the outgoing junta in Andalusia, who were responsible for overseeing the tender process.

Key Points in the Litigation:

  • Date of Initial Tender: December 16, 2014 – Emerita submitted a detailed technical proposal for the Aznalcóllar Project.
  • Controversial Award: On February 23, 2015, the Junta of Andalusia awarded the tender to Minera Los Frailes SL, despite Emerita’s assertion of having a stronger proposal.
  • Legal Action Initiated: Emerita appealed the decision, alleging corruption among the junta officials involved in the tender process, which has led to a criminal case.
  • Court Developments: In October 2019, the Appellate Court of Seville reopened the criminal case, expanding the scope of the charges to include prevarication and bribery, among others. This is a big deal, and wouldn’t happen without evidence significant enough to suggest they can get a guilty verdict.
  • Scheduled Trial: The criminal trial is set for March 3, 2025, with the proceedings expected to run until July 15, 2025.
  • Potential Consequences: The defendants, which include some of the officials involved in the tender process, face significant prison sentences if found guilty. The company, however, faces no downside but legal expenses, and if the allegations are proven, it’s highly likely they’ll be awarded the tender on a property that is a genuine monster.

You like them for the Iberian Belt West? Wait’ll you get to March 2025.

“THIS MAKES NO FUCKING SENSE AND I WONT STAND FOR IT”: Plurilock (PLUR.V)

Plurilock isn’t a client of ours anymore and that’s okay because, frankly, nothing they could do over the last 18 months was going to get folks paying real attention to them in the current climate.

They’re an information security company with great government, military, and Fortune 500 contracts, they do $70m+ in annual revs, and their newsflow is just a constant “[big company/organization/country] re-ups contract worth [x] million annually” and nobody cares because people don’t dig in on retail deals anymore.

But this couldn’t last forever. Word on the street is an investor bothered to look, realized the market cap was stupid low, and started buying – and rearranging – and cleaning the company up from the inside out.

It’s no secret that PLUR over-extended itself when it went on a buying spree a few years back, getting some great market share, good tech, and entries into some tough markets to penetrate as it collected assets, but the margins were just too tight to get ahead on its quarterly profit-loss without a little help.

Help has reportedly arrived. The company raised over $5 million, rolled the stock back a little, and focused on making poisitive change.

Here’s what that looks like:

Now, before you movee along, the big drop is the roll back announcement, but since then we’re seeing an increase in volume and share price. $0.20 to $0.36 in five weeks is good returns for those who smelled weak hands and did their thing.

Let’s cut to the chase: This is a $3.6 million market cap company that does $70 million a year in revenue.

Yeah, they had a $9m loss last year, but that’s tightening quickly, some rough loan arrangements have been reconfigured, and the deal is coming out of repair mode.

Still not a client, but we like the crew and respect what they do, and the time might be right to reward good bones.

CLEAN UP, AISLE 5: Standard Uranium (STND.V)

Man, the market really hates the word roll-back, doesn’t it?

These guys were moving along okay, holding their value, and decided it might be a good time to raise some drill money for one of their projects (I concur), and clean up the share structure a little while they’re at it.

Whammo, instant drop.

Honestly, I know traders like a stock to get a 10% shift every half cent it moves up or down, but if you’re an INVESTOR, you want your target to appear reasonably healthy when a prospective investor looks at the chart, and if someone is looking to drop $3 million into the work program but needs the stock to be over $0.25 when it happens, we’d normally call that investor INSTITUTIONAL.

Standard isn’t telling tales as to who that investor may be, but if it comes with a corporate structure cleanup, that’s a good thing, kids, so when the floor drops out of the stock in a situation like this, I usually like to come in on the cheap.

It’s a $9 million market cap uranium stock with multiple projects being worked – yes, worked – for themselves and partners. Best indie technical team in the Athabasca.

Don’t be a dummy – this is when you dive in.

THE REHAB STORIES: Tisdale Clean Energy (TCEC.C) and Alaska Energy Metals (AEMC.C)

This week I wrote two stories that are basically the same tale, only for different tickers, and the CEOs of neither company were ecstatic about it.

One went quiet, one asked me to take it down. To be clear, neither were a client, though one had been before and the other might be in the future. Okay, disclosures dealt with.

Here’s the thing, boys. YOU CAN’T HIDE YOUR FACIAL SCARS.

The god’s honest truth is, sometimes an HONOURABLE CEO with a GOOD PROJECT realizes they have to market their company to investors because, to not do so, is to succumb.

They meet some snazzy marketing guys who say all the right words, and they believe those guys will help because their previous clients had their stock go up on the back of promo.

And – let’s be fair – the marketing does a decent job, the stock climbs 15% on the back of new investors, everyone’s happy, but then the marketing guys short their client because the stock they bought in the deal is about to be free trading and they know ALL THE OTHER PROMO GUYS ARE SELLING IT, so they know the stock will go down, and what are ya gonna do – MISS THE OPPORTUNITY TO MAKE MONEY out of some sort of feeling of duty and empathy for your client, and your readers/followers?

[NOTE: We’ve never, not one time, shorted a client – or even a non-client that we pointed out the shortcomings of, because shorting is for bitches and our integrity is our competitive moat]

So back to AEMC and TCEC: Both of these deals, in my humble opinion, were screwed by the guys they paid to help. The timing of the stock drops just matches up.

Let’s be clear; the CEOs are not saying it, they’re not naming names, but I’ve been arond the block, this is what happens all the time – AND IT’S ACTUALLY A GREAT OPPORTUNITY.

Clearly the CEOs of those companies would prefer I don’t say these things because they don’t need the heat, and the marketing guys would like me to shut the fuck up because I’m ruining their business model, BUT HEAR ME OUT: THE MARKETS LOVE A CONFESSION

If you’re rocking a stock chart that’s down 60% in two months, you’re not digging out of that by going quiet, or pretending it didn’t happen, or by telling yourself that the marketing guys are your pals and ‘maybe didn’t screw us over..’

But you know what will move you back up?

  • HONESTY.
  • TRANSPARENCY.
  • RESPECTING THE RETAIL GUYS.

Institutionals will cut you for a buck. Marketing companies will get paid by you and make more money killing you on the back end. Brokers are broken humans. And traders feast on the rotting corpses the other guys leave behind.

But retail is dumb enoughemotional enough even – to give you a chance. If you TALK TO THEM and don’t bullshit them, they’ll believe in the person in the leather chair and choose the side of good over evil, and put their dough into your war chest.

WANT PROOF?

Gamestop. That entire freakshow was retail sticking shivs in Wall Street to the tune of billions.

WANT MORE?

Me.

The day I wrote stories about the two companies saying I’m talking about, ‘okay, so the marketing dbags are done selling, it’s good to go now’, guess what happened:

THE FUCKING THINGS STOPPED FALLING.

Sunlight is the best disinfectant.

Two separate companies, no connection other than they were getting their ass handed to them when big ears over here started yelling into the abyss about abusive marketing guys being abusive and BOOM – instant handbrake.

You know why? I’ll tell you why.

BECAUSE HONESTY IS A PUBLIC MARKETS MARKETING NICHE.

If you actually fess up and say, ‘yeah, we did a thing and it didn’t work and now we’re hurting but that hurting will stop soon and then you can buy back in for a 60% discount,’ THAT IS A COMPELLING SALES PITCH.

And once you’ve explained why the ass fell out of the markets and the dust has settled, people stop wondering out loud if you were in on it (they weren’t), or if it’ll happen again (it won’t), or if maybe your property is shit (they’re definitely early stage, but not shit at all).

These two companies are stronger and cheaper today than they were a week ago, because now people can stop talking about what they did wrong and focus on their good bones, available now at a discount.

Which means now they can get to advancing those properties and figuring out how good they are, and that’s why we’re all here.

WHAT WE’RE STUDYING TODAY (things good folks have suggested we explore)

  • Panther Metals (PURR)
  • Forge Resources (FRG)
  • Saga Metals (SAGA)
  • Lincoln Gold (LMG)
  • Meridian Mining (MNO)

WHAT WE’RE SUPER INTO (things we spotted that are blowing our hair back)

GoldON Resources (GLD) – YO, this thing is a real hidden gem and will get heated quickly

WHAT YOU SHOULD BE CONCERNED ABOUT

  • Canopy Gold Corp (CGC) – shitty, humungous financings with all the stink of a death spiral
  • American Aires (WIFI) – insanely bubbled, no chance of earning its promo-heavy market cap, despite marketing towards psychotic right wing doomsday preppers
  • Bayridge Resources (BYRG) – same crowd that ran the Neotech Metals promo that went hard, got halted, and died when we exposed it

FULL DISCLOSURE: The deals that are clients are clearly marked. The rest aren’t, used to be, might be soon, or wish we would die in a fire. But we may still buy the stock.

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2 thoughts on “Good Guy Wrap: Who’s moving up, who’s good value, who you should burn”

  1. James Fitzpatrick

    Can you do an article on the great comeback of Herbal Dispatch boys. They are working very hard to cement themselves back to to profitability.

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