More matter with less art

Evrim Resources (EVM.v): In praise and defence of Joe Mazumdar and Brent Cook of Exploration Insights (from IKN498, last weekend)

Here’s a note that turned into a rant, part of last weekend’s edition of The IKN Weekly, IKN498.

Evrim Resources (EVM.v): In praise and defence of Joe Mazumdar and Brent Cook of Exploration Insights

I’m going
to get something off my chest and have a good old rant.

week, we saw another junior story hit hard times as Evrim Resources (EVM.v)
released first drilling results at its (to that point very promising and exciting)
Cuale project in Mexico.
Even though it’s an exploreco in LatAm, it’s not one that’s been featured on
these pages as once the initial market-moving event happened to the stock, its
potential risk/reward didn’t look attractive to me. My neutral position started
to look a bit shaky when no lesser name than Newmont (NEM) decided to take a
minority stake in the company by buying into a $7.3m place at $1.50/share, but
as things turned out the drilling announced at Cuale last week didn’t get close
to matching the initial trench results from the project (I’m not going to go
into post-mortem details of a stock we have not previously covered here, if you
want to know more check out the NR or mail me and I’ll be happy to give the
quick’n’dirty) and the stock did this (below). 
That is one helluva nasty sell-off. It depends where you draw the line
exactly, but in approximate terms it’s a 75% haircut and this weekend’s $0.325
price is a mile away from where it was. 

And now
to the point: It so happens that this week saw me watching the market pretty
closely and on the back of the collapse, bullboards and social media of all
shapes and sizes decided to lay into Exploration Insights, the mining
newsletter run by Joe Mazumdar and Brent Cook, as they’ve had EVM as one of
their positions. So yes, they got hit by the big sell-off and yes it’s a hole
blown in their portfolios (they like me use the “eat your own dinner” system
and only reco the stocks they buy). So out came the trolls and the “Ha Ha
Exploration Insights Sucks!” or “Joe and Brent have cost their subscribers a
lot of money” type comments, Monday morning QBs all around.

goes to show that a little knowledge is a dangerous thing. That and the
majority of people who spout on bullboards are pig ignorant and will often
prefer not only to be that way but stay that way. Yes, they held into the bad
news, but what the easy critics and trolls fail to mention was that Exploration
Insights bought into EVM at 10c back in late 2015. And then in April 2018 when
the first flush of good news about Cuale came in, they made a partial sale of
stock at $1.38. Here’s that mapped out on a price chart:

If that’s
your idea of a failure, I can only assume that Brent and Joe would like to fail
in your eyes all the time. On show there isn’t just good investment advice in a
junior exploreco, it’s exceptional. They identify an opportunity early, have
the chops to call a partial sale when things suddenly get peppy, and even after
the massive selling they are a mile up on their original purchase. Not only
that, but this week Joe/Brent have two other trade plans open on EVM but in
order to know about them, you’ll need to subscribe to their service.

Which I
strongly advise you to do. I know it’s not the cheapest out there, but
Exploration Insights (EI) is the best newsletter written on the mining
industry, hands down period no question and yes, I very much include The IKN
Weekly in that calculation. The exact focus of EI is somewhat different to The
IKN Weekly and all about using the duo’s geological knowledge to identify
early/very early-stage exploration opportunities in which to invest, but that’s
a minor point. They are the best and you should subscribe to their service, but
even if you don’t you can do yourself a favour this week and go around your
usual internet haunts and jot down the names of people who have spent the week
criticizing Joe/Brent for their position in EVM; those people, quite literally,
do not know what they are talking about and their advice on other matters is
very likely to be of the same low quality.

I’m an
irregular reader of other opinions on mining and markets, but there are only
two newsletters that I read every edition, come what may. One is Gary
Tanashian’s ‘Notes From The Rabbit Hole’ (12), which gets frequent mention on
these pages due to his unbeatable macro-coverage services and impressively
ego-free, insightful eye. The other is Exploration Insights (13). I often find
myself agreeing with their viewpoints but definitely not all the time (and when
it comes to difference of opinions, both they and I have had the last laugh on
different subjects over the years), but my stars when they say something you’d
be daft not to listen (and you’d better have a good reason to oppose them).
Joe/Brent and Gary are both best of breed newsletter writers, I cannot recommend them
too highly. And with “failures” like Evrim, who needs successes anyway?
Christmas is coming…buy yourself a something nice.

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