More than 3 months since I started Contrarian Miner, I finally have the pleasure of seeing the portfolio in profit. The value stands at £105,158 up 11% since I last posted on 10 Feb. Top gainers have been Antofagasta (+25% since my last post), Amara Mining (+20%), BHP Billiton (+19%), and Fresnillo (+16%).

In the past fortnight the FTSE 350 Mining Index (TR) has outperformed the less volatile Contrarian Miner portfolio (although Contrarian is 14% above the index since inception).

I have today sold 450 of my 800 FRES at £9.62. The shares are up 39% since I bought them against the silver price up just 6%. The latest quarterly production results looked solid enough (silver production at the top end of guidance and gold exceeding guidance) and further production growth is forecast for this year. So there is no particular reason to sell. But I bought Fresnillo largely because of a solid balance sheet and the ability to generate profits even at low silver prices rather than any particular positive view on its operational outlook. As such, its significant outperformance relative to silver looks to me like a profit taking opportunity.

Contrarian Miner currently has £7,684 in cash and while that’s higher than it should be, today is more of a selling than a buying day. In fact, I am struggling to curtail the itch to sell everything that moves today.