Q1 Business Update (UPDATED)

In Q1, we took profits in IAMGOLD, FORTUNA SILVER MINES, DEEP YELLOW LIMITED, YAMANA GOLD MINES, GOLD RESOURCE CORP., LUCARA DIAMONDS, STEPPE GOLD, IMPACT SILVER, PAN AMERICAN SILVER, COEUR MINES, PURE GOLD MINING, AGNICO EAGLE MINES, PARAMOUNT GOLD NEVADA, GOLDEN MINERALS, MCEWEN MINING, STANDARD URANIUM, SIERRA METALS, EXCELLON RESOURCES (3/11), SILJ, AND SIL.

***We exited a large stake in Alamos Gold on 4/18, which enabled us to reach final cash reserve target.***

We initiated a stake in Bear Creek Mining, now operator of the Mercedes Mine in Sonora, on 3/09/2022 and a stake in Treasury Metals on 3/10/2022.

Fahy Capital Management has raised cash at a furious pace in the face of uncertainty coupled with this being a Shemitah year. The fund is currently 62% cash. We have no intention of deploying that cash unless an extraordinary opportunity presents itself.

2 Comments

Curious what your thoughts are on commodities in general (uranium specifically if you’ll go specific). I feel like all of Twitter is preaching that it’s commodities day in the sun – and when everyone is yelling something usually I get worried. Thanks for keeping your blog open!

Hi, Zach,

As of 3/10/2022, our exposure to uranium is 0%. We had an extremely concentrated position in Deep Yellow which was evacuated over the course of 12 months, netting a return of 341%. We met our quantitative objective on the stock and have no intention of looking back.

Find a way to personally quantify your entries and exits. It doesn’t matter what the crowd thinks or does.

The last few weeks have been a blessing and you know that saying about looking gift horses in the mouth…

In my own life, I have learned to humbly accept what gifts the Lord is willing to provide. I prayed for protection from pride and greed. I prayed for the insights that enabled me to develop a quantitative system that puts me in touch with the natural order of things. My opinion doesn’t matter. What I think I know doesn’t matter. A pastor friend said to me many years ago: “A man is what he thinks, but a man is not what he thinks he is.” It took me about 10 more years before I understood what that meant.

But I digress. I have been active in the markets for 26 years and have had a chance to personally make every investment mistake that is available to a person. And what I discovered through tribulation is not what I expected: God is in control, not opinion-makers, influencers, news cycles, politicians, or scientists. All of these folks ride on the coattails of something much larger than they. They steer nothing. They know not what comes next. But God moves through all things and His signature is everywhere. I simply humble myself before that signature now, fully cognizant that I can’t add something new to the market; I am simply able only to conform to the Eternal Laws to which I am subject completely.

I trade not for the sake of trading. I trade that I might have the means to protect my family, nourish them, raise them up in accordance with the dictates of God.

His will. Not mine.

Commodities? All I can see is assets stretched 2, 3, 4 and even 5 standard deviations from the mean, which never ends well.

It also may be of value to read up on the Shemitah Cycle. I sense a great storm on the horizon and I don’t want to put my family in jeopardy by being overweight stocks.

Have a great day!

Tom

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