An investing adage as old as time, is follow successful people. Typically, these people are either speculators or building companies or both. Therefore, their goal while the same as ours, to make money, follows a much longer timeline than most “investors.” Their commitment to the project is typically greater than “investors.” So is their tolerance for risk. As investors/speculators we can look at their history and see who they are and what they have been involved in.
Follow a brief comment on New Found Gold, we’ll look at three of the people who are founders an involved with New Found Gold since its beginning.
LOTM: It seems a good time to be acquiring shares of New Found Gold. The share price is attractive on a market cap and technical analysis basis. They have discovered a series of high grade core samples over an extended length of kilometers and at a higher than average width. When reading the New Found Gold, News Flow linked here, keep in mind that 2 feet to 3 feet “width” is considered better than average, and 6 to 8 Grams (g) or AU (gold) is consider a successful mining prospect for an underground mine. Two to three grams is considered an excellent prospect for an open pit mine.
New Found appears to be in a stage-one chart pattern moving sideways. It is not unusual for small illiquid stocks to make a sharp drop in price prior to a big move high so our approach is to begin the accumulation of shares, not use a stop loss and use weakness as an opportunity to buy more shares. Once the stock move 50% our average cost we might sell some higher cost shares to refresh our cash. This is approached is as a long-term, investment/speculation with a 3X to 10X price increase goal. Between now our goal, we will consider selling up to 30% of the share position and re-purchasing shares during price correction periods.
Skimming the News Flow headlines linked above we can see the numbers in the core sample for New Found Gold as far above normal. It is an excellent base reason for taking an interest in a mining company! New Found Gold has also set up financing for up to $100 million Canadian to further explore and develop their claim.
Two of the lead people are Co-founders, Collin Kettell and Eric Sprott. Each owns 31 percent of New Found Gold.
A third Co-founder and President of New Found Gold is Denis Laviolette. Denis is also the Founder and Executive Chairman of a LOTM favorite company and owned by LOTM in related accounts. That company is EarthLabs (SPOFF), formerly GoldSpot Discoveries.
As you scan the history of Kettell and Laviolette, you can see companies where these people have and are working as a team. Eric Sprott is not so linked because he is prolific as an investor and not involved in company operations. Sprott has invested in a high percentage of global junior exploration, companies in the natural resource industry. Perhaps the most prolific investor in multiple companies ever. Mr. Sprott is a 17.75% owner of EarthLabs (GoldSpot). Palisades GoldCorp, controlled by Collen Kettell, is a 13.145% owner of EarthLabs (GoldSpot).
Collin Kettell
Founder of 8 different companies, notably: New Found Gold Corp., AuEx Ventures, Inc. and Nevada King Gold Corp.
- Executive Chairman & Partner at Palisade Global Investments Ltd. (which he founded in 2013),
- Executive Chairman & Chief Executive Officer for New Found Gold Corp. (which he founded in 2016),
- Executive Chairman & Chief Executive Officer of Palisades Goldcorp Ltd. a Canadian Merchant Bank that finances Natural Resource projects (which he founded in 2019).
- President, Chief Executive Officer & Director at Radio Fuels Corp., a uranium deposit
- Chief Executive Officer & Director at Nevada King Gold Corp. (which he founded in 2000), Executive Chairman of Nevada King Mining Ltd. (a subsidiary of Nevada King Gold Corp.). Nevada King is the third largest claimholder in Nevada, behind #1 a Barrick/Newmont Joint venture and #2 Kinross Gold.
- He is also on the board of Golden Planet Mining Corp.
- In the past Collin Kettell was Independent Chairman for GoldSpot Discoveries, Inc. (Now EarthLabs [SPOFF] he founded the company in 2016),
- President & Chief Executive Officer of Casino Gold Corp.
- Chief Executive Officer & Director at Victory Metals, Inc. (he founded the company in 2000).
Denis Laviolette
Denis Laviolette is a businessperson who has been at the helm of 6 different companies.
- Founder of New Found Gold Corp. and GoldSpot Discoveries, Inc. (now EarthLabs)
- Executive Chairman & President at EarthLabs, Inc.,
- President at Palisade Resources Corp.
- Vice President for Palisade Global Investments Ltd.
- President & Director at New Found Gold Corp.
- Chief Geologist at MA Resources Ltd.
- Vice President for Palisade Global Investments Ltd.
- on the board of 5 other companies.
In his past career he was President, Chief Executive Officer & Director at GoldSpot Discoveries, Inc., President at Pinetree Capital Ltd., President & Director at Casino Gold Corp., Vice President-Corporate Development of ThreeD Capital, Inc., Production Geologist at Lake Shore Gold Corp., Director & Production Geologist at Kirkland Lake Gold, Inc., Senior Exploration Geologist at Buccaneer Gold Corp. and Senior Exploration Geologist at Xtra-Gold Exploration Ltd.
Mr. Laviolette received an undergraduate degree from Brock University.
Eric Sprott
Eric Steven Sprott is an entrepreneur and businessperson who has been the head of 17 different companies and holds the position of:
- Founder of Sprott, Inc., (SII)
- Cormark Securities, Inc.,
- Sprott Foundation
- Sprott Asset Management LP
- Chairman of Sprott Consulting GP, Inc.,
- Chief Executive Officer for Sprott Private Wealth GP, Inc. and
- Chairman at Sprott Consulting LP.
Mr. Sprott is also on the board of Sprott, Inc. (former Chairman & Chief Investment Officer) and Sprott Foundation and Member of Order of Canada. He previously held the position of Chairman, President & Chief Executive Officer for Cadomin Capital Corp., Chairman for One Earth Farms Corp., Non-Executive Chairman at Kirkland Lake Gold Ltd. and Chairman for Kirkland Lake Gold, Inc. (a subsidiary of Kirkland Lake Gold Ltd.), Chief Executive Officer of Cormark Securities, Inc., Chief Executive Officer at Sprott Physical Gold Trust, Chief Executive Officer & Director at Sprott Physical Silver Trust, Chief Executive Officer of Sprott Strategic Fixed Income Fund, Senior Portfolio Manager at Sprott Physical Platinum & Palladium Trust, Director at Sprott Resource Corp., Chairman of Sprott Asset Management LP, Chief Executive Officer at Sprott Capital Partners LP, Director, Chief Executive & Investment Officer at Sprott Asset Management GP, Inc. and Analyst at Merrill Lynch Canada, Inc. He received an undergraduate degree from Carleton University.
Eric Sprott is one of the ten wealthiest individuals in Canada.
Our Point? Birds of a feather flock together. In getting to know active and successful people, we want to track what they are currently doing and follow along with them on their paths. When we find teams of people who have worked together over decades, we are really drawn into their circle.
In entering the Canadian natural resource industry two years ago, we have discovered multiple “teams’ of people who have become very successful over multiple projects. Some of the team members migrate into other teams we are aware of, leading to new projects. This “group of three” is one such small but active team. It is our analysis, that New Found Gold and EarthLabs are two of their most attractive projects at this moment in time.
Good Fortune to us all!
Written October 17, 2022, by Tom Linzmeier, for Tom’s Blog at https://lotm.substack.com/.
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