Panterra Resources is run by the old management group of Manitok Energy Inc. (MEI).  We first added the stock when it was a private corporation and subsequently the company has gone public (through a reverse takeover) and done another equity raise to purchase assets from Talisman.  The second equity raise was done at a significant premium to entrance price.  Due to price appreciation, Panterra has grown to 6% of the fund.  The stock is still restricted, and we are unable to trade it for another 2 months.

Raise Production is a company developing lift technology for horizontal drilling to further enhance recoveries and increase well paybacks.  It still is in the testing phase, but released favorable results in the quarter, adding to returns.  We have shaved the weight after the stock ran up as there will be little in the way of news until the fall, but still a good name to own.

Air Canada had a significant pull back in the first quarter due to oil price increases and poor earnings results.  We had reduced the position in Air Canada in January on these concerns.  When the results were released, we took the opportunity to increase our position as the miss was solely due to weather and there were still positive headwinds for cost cutting and yield improvement.  The stock has performed is up over 50% since the initial negative reaction and we continue to like the future potential for the stock.

Of the stocks showing the largest negative return, I have added to all the following positions in the quarter.

Mawson West is a copper producer in the DRC, located in the Katanga Basin with a producing property called Dikulushi and a developing asset named Kapulo providing future growth.  They were expected to get their debt package in place. This took a month longer to negotiate with some shareholders losing patience, the stock was under pressure.  The debt package is now in place at favorable terms and given my very bullish views on copper, I have added to this position as it is trading at 2.5 times cash flow.

Oncolytics suffered this quarter with the sector in general; health care being one of the worst performing sectors this quarter.  The company is a biotech company focused on the development of oncolytic viruses as a potential therapeutics for use in a broad range of cancers.  They are conducting clinical studies using REOLYSIN™, its proprietary formulation of the human reovirus, in a number of cancers including lung, colorectal, pancreatic, head and neck, as well as ovarian.  The news flow has been quite sparse in the last quarter, but in the next few months these trials will be released.

Fission Uranium fell with the weight of the uranium sector as Uranium prices were negatively impacted by lack of demand and more delays from the Japanese nuclear restarts.  Unused capacity was being used to refine enriched uranium adding to the supply issue.  Fission is not producing and has one of the world’s most exciting high grade discoveries (PLS) in the Athabasca Basin.  News flow the last quarter was negligible but will improve as the summer drill program has begun.  The company is well financed for this drill campaign.

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