Gerardo Del Real,
Editor
Jan. 7, 2026
In April of 2020, gold was below the $2,000 level. The junior resource bull market was nowhere near getting started. So I did what contrarians do — I went looking for a junior gold explorer.
After quite a bit of due diligence, I did what I always do. I looked for a management team that I knew, looked for assets with scale in a top-notch jurisdiction, and looked for a solid share structure.
I landed on Southern Cross Gold (TSX: SXGC), then Mawson Gold. The company checked three of the four boxes. The only one I wasn’t 100% satisfied with was the share structure, as there was a group that owned a block of shares that was shopping that block around.
In April of 2020, I recommended the stock to subscribers of Junior Resource Monthly at C$0.73. The stock quickly surged nearly 80% on some drilling success, yet by April of 2022, I found myself down some 50% on the position. Why? A number of factors — not the least was that the block of shares I mentioned started to leak into a weak market.
It didn’t matter. I knew we were on to a discovery of significance that had the potential for scale and grade in a tier-one jurisdiction, and I knew the team was one of the better technical teams in the space.
The discovery was the Sunday Creek project in Victoria, Australia. After a year and a half or so of being ignored by the market, the discovery started to capture the market’s attention.
Fast forward to today, we’re up 1,200% on the position.
The company now has a market cap of C$2.5 billion, anchored by the now world-class Sunday Creek project and with a shareholder registry that includes the likes of none other than Pierre Lassonde.
We didn’t have a bull market. We didn’t have $4,000 gold. But we knew we were on to a discovery that could become a company-maker, so we let the process play out and continue to be rewarded.
I share this story to highlight the importance of knowing what you own. Most of my triple- and quadruple-digit winners in the portfolio have been down 50% at one point. Sometimes it doesn’t work out and I move on. But when you have the goods, you have to have the conviction in this space to let the process play out.
Over the next few months, I’ll be taking profits on several positions that have upside but not the 10X upside I look for. I’ve already started the process of identifying the next 10X winners with several picks to come and a few that I recently introduced — picks that haven’t run yet.
We didn’t have a bull market when I bought Southern Cross Gold or Patriot Battery Metals (now PMET Resources), or many of the triple-digit winners in the portfolio.
We certainly have one now… and I’ll continue to work hard to give us the best chance at making the most of this historic metals run.
I hope you’ll come along for the ride.
Let's get it,
Gerardo Del Real
Editor, Daily Profit Cycle