Structuring Multi-Bagger Mining Stocks: Gains That Keep On Gaining

Share structure, share structure, share structure. That was the first lesson I learned in the business by a mentor and now close friend. It’s a boring lesson, it’s boring to talk about… yet it can make you a lot of money when coupled with the right team and assets (plus a little luck).

Those of you who follow me know that two of my biggest personal positions are Hannan Metals (TSX-V: HAN)(OTC: HANNF) and Kingsmen Resources (TSX-V: KNG)(OTC: KNGRF)

Those aren’t new positions. Our group wrote checks in Hannan at C$0.25 and C$0.35 in the last two financings and wrote the most recent check for Kingsmen at the C$0.25 level. 

Each of those had warrants that have provided a windfall, and both companies will be kicking off maiden drill programs in the next several weeks that could be bona fide company-makers. 

Now, back to why we wrote the checks.

When those checks were written, we had hopes that the companies would develop their portfolios diligently. We also had high hopes for the historic precious metals bull market we’re now getting. Those were wants.

What we knew was that the share structure in both companies was exceptional. So much so that our group took the majority of the last financing each company executed.

We know who owns the shares, who is reporting, who is buying, and who is selling. So when both companies made significant strides in advancing their respective properties, we knew that folks would have to buy shares in the open market to participate in the upside.

Take a look at the 12-month charts for both companies. Hannan is up 240%, Kingsmen is up 250% — all without a single drill hole.

Hannan Metals 12 month chart

Kingsmen Resources 12 month chart

Each company has done a phenomenal job derisking their drill targets and developing their projects. Yet, it is the share structure that has allowed their respective share prices to rise the way they have. 

Assets are important, management is important. But at the end of the day, you can have a great team and a great project… but if your share structure isn’t up to par, the gains will come slower and, ultimately, the reward for the risk you took will be less. 

As I mentioned, each company will kick off their maiden drill programs in the coming weeks. I invite you to track the success of those programs and the response in real time.  

I also invite you to participate in the most recent private placement Nick and I just went live with. It’s a copper-gold deal with an exceptional team that’s positioned to take advantage of this historic metals bull market. 

Members of Private Placement Intel received an alert yesterday allowing them to participate. The deal will close quickly, and I suspect shares will trade at much higher prices over the coming months.

Let’s get it! 

Gerardo Del Real

Gerardo Del Real
Editor, Daily Profit Cycle