Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
As ever, the market is driven by sentiment in the short term and currently the sentiment is anti risk and anti growth. SFOR is being priced accordingly. Assuming it survives, its price will recover as market sentiment swings back to FOMO but you'll need to be patient. I'm holding.
IMO this company's worth is in its management and potential, so it's a long term hold for me in the hope that patience will be rewarded. You have to expect the share price in an unproven company like this to be volatile for similar reasons as with BTC and TSLA.
Unlike bitcoin, I expect it eventually to pay dividends and build brand value. There's a recent (2 Feb) insider trade at 499 on 20,000 shares so I'm comfortable that the recent easing back of the price is in line with general jitters in the market rather than an indication that anything fundemental has changed.
I have enough allocated to this company, otherwise I'd be thinking about using this weakness as a buying opportunity. (And trying to time the bottom!)
I see that two investment managers have recently notified increased holdings - Lazard 10% and City of London 11%. This seems like a vote of confidence, especially given that they could not easily liquidate such holdings in a hurry. Or am I missing something?
Yes, interesting indeed. But as I said, I would have expected a discretionary manager (DFM) to have known of the connection and to have been required to jump through some hoops before executing such a trade in a stock with potential conflicts of interest attached. I would now have a number of questions for the DFM: Why buy the holding in the first place and was it bought in similar proportions for all your other clients with similar profiles? Did you liquidate all your other clients' holdings in BRWM? At the same time? Did Mr Mosely encourage you to buy the stock? Or to sell it? Were you aware of Mr Mosely's connection with BRWM? For me, cancelling the bargain sounds like putting the money back into the till after someone has noticed it is missing. Necessary, but not sufficient! I'd like to hear more about how this happened and whether any related events occurred, eg if the sale actually was undertaken at Mr Mosely's suggestion, then did the DFM sell other holdings effectively as a result of a nod and wink? Blackrock has its reputation to protect - I hope they don't think that just cancelling the trade puts an end to the matter when more transparency is needed. This is not so much about this trust as about compliance and corporate governance generally at Blackrock.
I am not blindly uncritical of the trust but I do understand some of the problems of running a high risk trust such as this. Having said that, I am concerned, for example, at the sale by Judith Mosely's husband yesterday of his whole stake in BRWM. This was apparently done by a discretionary manager but I am very cynical about this because I cannot believe that the manager was unaware of the family connection. All parties here would be aware of the need to ensure that there was no possibility of an accusation of insider dealing being brought, let alone sticking. I hope that this is simply stupid PR rather than something more sinister and I expect Blackrock to move to protect their reputation by telling us more about this.
If you can take a long term view, the sector and this trust should repay your patience; in the meantime it's paying a useful dividend of about 5%. I say "long term" because I believe that long term demographic changes (increasing middle classes in emerging markets) will need copper, iron etc and also there is a saying that "low prices are the cure for low prices". When the price does move up again, it is likely to happen too fast for you to get back in so I am simply holding and waiting.