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Unearthing Opportunities: Special Situations for Q4 2023
Contributed Opinion

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Malcolm Shaw Natural resource special situations for Q4 2023 offer overlooked opportunities across the resource sector. By targeting catalysts, nimble investors can position for gains.

Tenaz Energy Corp. (TNZ:TSX TAG Oil Ltd. (TAO:TSX.V; TAOIF:OTCQX)New Stratus Energy Inc.'s (NSE:TSX.V) Condor Energies Inc. (CDR:TSX.V) Valeura Energy Inc.'s (VLE:TSX; PNWRF:OTCMKTS)

The fourth quarter brings a time of change and reflection. As 2023 winds down, some promising situations are emerging across natural resources like oil, gas, uranium, and gold.

While uncertainty lingers in broader markets, nimble investors can find value in overlooked or misunderstood special situations.

By targeting specific catalysts and events, one can position for gains while others remain sidelined.

Tenaz Energy Corp. (TNZ:TSX) remains remarkably undervalued, given its leadership and strategy.

As the company pursues further North Sea acquisitions, its proven acquire-and-optimize model should continue driving shareholder value.

TAG Oil Ltd.'s (TAO:TSX.V; TAOIF:OTCQX) upcoming results from its Western Desert horizontal well could confirm a significant onshore Egyptian oil play.

If initial production rates meet expectations, Tag will be firmly on the map.

New Stratus Energy Inc.'s (NSE:TSX.V) proposed Venezuela deal comes at an opportune time, given warming U.S.-Venezuela relations.

As one of the only ways to play Venezuelan oil in the junior space, New Stratus offers leveraged exposure here.

For Condor Energies Inc. (CDR:TSX.V), a potential gas deal in Uzbekistan could be announced soon to ramp up supply ahead of winter.

Its Kazakhstan LNG arbitrage and lithium plans provide additional upside.

Although no imminent news is expected, Valeura Energy Inc.'s (VLE:TSX; PNWRF:OTCMKTS) fundamentals keep improving.

Its infrastructure optimization team helps minimize costs, while the Wassana expansion enhances the longevity of its core fields.

As Valeura cements itself as a Southeast Asia producer, its discounted valuation remains compelling.

Hercules Silver represents a high-risk, high-reward speculation based on early drilling at its potentially massive copper porphyry discovery.

While additional results are needed to confirm continuity, the sheer size of the mineralized system points to a huge upside if it proves out.

Critical Elements' advanced Quebec lithium project ticks all the boxes for a development asset yet trades at a fraction of its NAV.

A financing package would be a key catalyst to realize its potential value.

Finally, Radius Gold's Tropico project bears watching as it tests for high-grade precious metals at depth within Mexico's largest silver district.

Its proximity to world-class mines heightens the prospect of a significant discovery with the right hole.

By targeting misunderstood or overlooked special situations across resources, nimble investors can position for gains this quarter.

As catalysts emerge, these opportunities offer the potential for outsized returns compared to broader markets.

Focusing one's time on high-quality teams, advantageous geographies, and proven models for value creation tilts the odds in one's favor.

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Important Disclosures:

  1. Tag Oil Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
  2. Malcolm Shaw: I, or members of my immediate household or family, own securities of: All. [COMPANY]. I determined which companies would be included in this article based on my research and understanding of the sector.
  3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
  4.  This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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Disclosures for Hydra Capital

This is not investment advice, nor is it a recommendation to buy or sell shares in the company/companies mentioned.

The information contained herein is accurate to the best of the author’s knowledge, but the material and interpretations contained herein should be independently verified by any party using this information as part of any research, editorial, or decision making process. Any views expressed here represent the author’s opinion only, and as such readers should do their own research and come to their own conclusions if they are using the opinions contained herein as part of any larger due diligence process. The author may have long or short positions in the companies mentioned and may be buying or selling in the market depending on which way the wind is blowing at any given moment. Opinions are subject to change without notice. Prospective resources, predictions, comparisons, financial projections, and extrapolated metrics are, by their nature, subjective and interpretation dependent. The topics covered are highly speculative and involve a high degree of uncertainty and risk. Speculative companies can and do go to zero. By using this site, you agree that the author(s) and Hydra Capital is/are not responsible for any damages incurred by the use of the presented materials. Anyone reading these blog posts should know that they are the author’s thoughts and opinions, which are not to be confused with or construed as research reports.

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