Doc talks gold.
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I’d be very surprised if there are no “unexpected” consequences of a Grexit. Gold will react and depending which banks are hurt, we can’t gauge how severe the disruption will be. I don’t believe this is a prudent time to unload all your gold shares as the global risk is substantial. Technicals become moot when dark swans land.
Doc, do you think this can be a game changer ?
If China wants to have more saying in the SDR inclusion of the yuan, it will have to disclose its gold holdings later this year.
It is even possible that gold will be included, so investors need to be wary about that.
http://www.bloomberg.com/news/articles/2015-04-20/mystery-of-china-s-gold-stash-may-soon-be-solved-as-imf-beckons
Gabriel, to me that falls into the financial category as much as a geopolitical event. Just the fact it’s being talked about and the fact China and the IMF consider gold holdings relevant sends the message about how central banks around the world still understand its’ importance. I continue to hold on to my PMs and will add periodically. I’m also buying selective stocks slowly on all pullbacks. I’m in this for the long haul since the long haul will be very conducive to gold and selective PM stocks. I love this environment for PMs—-it’s just a matter of time.
Agreed. It is just a matter of time, but I’m looking for the big washout to take or add to my long term positions in the metals and their miners. I have a few in play currently that should do well if we get a little pop here due to the weaker dollar.
Doc, I am not sure if you are familiar with Polymet (PLM), but they’ve been on my radar for a while due to the large Platinum, Palladium, and gold credits in its larger Nickel/Copper deposit. I see them as a mini-Norilsk Nickel but in Minnesota instead of Russia 🙂
My main thought is that they are getting the Feasibility Study to the point where a Major or Mid-Tier steps in to purchase them. Their stock price has been very resilient in the recent past despite the dips in base and precious metals, and I could see them getting taken out later this year or next year but would like your thoughts.
PRODUCTION
PolyMet’s NorthMet Project will annually produce 72 million pounds of copper, 15.4 million pounds of nickel, 720,000 pounds of cobalt and 106,000 troy ounces of precious metals (PGM group, Gold)
THE DULUTH COMPLEX
The Duluth Complex, a much-studied but not fully explored or understood geological formation near the Mesabi Iron Range, contains one of the world’s largest known undeveloped accumulations of copper-nickel-platinum-group-metals (PGMs). Shaped something like a folded taco shell, the massive Duluth Complex’s southwestern-most edge starts just below the City of Duluth, extends north toward Hoyt Lakes and then arcs northeast into Canada toward Thunder Bay, Ont. The NorthMet deposit and the bulk of the known copper-nickel-platinum-group-metals in the complex are found along the northern margin of the complex in a region running about 30 miles between the cities of Babbitt and Ely, Minn., and just south of the eastern end of the Mesabi Iron Range. The Iron Range has been a major iron ore source of the domestic steel industry dating back to 1880.
Here is a press release they just put out today.
through a long-term lease Polymet also owns 100 percent of the Erie Plant, a large processing facility located approximately six miles from the ore body in the established mining district of the Mesabi Range in northeastern Minnesota. I think having that plant and some of the financing raised puts them in an interesting position.
Shad, the technicals look good at this point and they’ve been in a trading range for about 4 years and are currently at the upper range against the upper bollinger band. If it would break out, it’s a possible buy. However, I notice they have cash and cash equivalents of about 9 million and I wonder whether they’re going to have to raise more money if not bought out. Of course, I guess they could sell a portion of their position to another player for future development. However, they appear to have significant reserves and have considerable upward potential. I guess I would consider purchasing them at a lower price closer to the lower part of their trading range or if they break out of their trading range on the upside. Doc.
Thanks for the analysis Doc. That is a good point about them being at the upper range of the bollinger band and waiting for a pullback to the lower part of the bollinger band.
Yes, they have plenty of money to make it through the end of the bear market, and they are getting their permitting finished, and they have that processing plant in place. However, the plant is old and needs some substantial refurbishment, and they’ll need the money for mining to either be raised, or JV with another company.
To me Glencore seems like the likely takeout partner as they are the one’s financing their $30 millon line of credit to move things forward. In a related twist, Glencore was going to make a bid to take over Rio Tinto, and their stock price moved against them sharply and the 6 month takeover rule just expired, but they don’t seem to be able to work out that merger.
What I am wondering is if Glencore is helping finance Polymet with an eye towards taking them over. If not another major like Teck, or Rio Tinto, or Vale, or BHP Billiton, or a mid-tier company like a Lundin, Hudbay may still partner up.
Definitely one I’ve been watching for about 2 years, and they seem to be getting close. I was watching Duluth in Minnesota and they just got taken out by Antofagasta, with a similar type of deposit and resource Nickel/Copper/PGM/Gold.
Thanks again for your response Doc!
GOLD TURNS IN 2020…..THAT WOULD BE 20/20 HINDSIGHT.
AL ! I think BUY BUY BUY GOLD ! Did you miss dis ? http://www.bloomberg.com/news/articles/2015-04-20/russia-returning-to-gold-with-biggest-purchases-in-six-months
SLAVES ! DEAD DEAD IS COMING ! Time NO STOP !
Franky, somebody feels its time to sell, and they have the gold to sell.
2 sides to every trade.
Paper traders only, end of story.
Good press release today from Scorpio Mining (Silver).
In addition Scorpio Gold had a good press release today on a win with the BLM.
http://www.scorpiogold.com/s/news.asp?ReportID=704540
Scorpio Mining owns 9% of Scorpio Gold, so that is the tie-in.
Cheers
Good press release today from Scorpio Mining (Silver).
In addition Scorpio Gold had a good press release today on a win with the BLM.
http://www.scorpiogold.com/s/news.asp?ReportID=704540
Scorpio Mining owns 9% of Scorpio Gold, so that is the tie-in.
Cheers
Hehe. Good stock price today too. (;-D
Here’s a link for trading info on Scorpio from the TMX Group. Shows how confusing it can get figuring out where the trading is occurring. Hope the link works.
If you pull up the 3 month cart and look at it, the fact that the $.195 resistance level was taken out up to $.20 today was very bullish Dan.
I trade the US OTC version of the stock (SMNPF), and it broke above its 50 day moving average of $.1501 today up today by (2.67%) @ $.154.
http://stockcharts.com/h-sc/ui
Breaking above the 50 day MA is bullish, especially when coupled with the Canadian equity SPM breaking its resistance.
Darn, that chart is not working that I posted. But if you go to stockcharts.com and type in SMNPF and then sort it for 3 months, you’ll see the 50 day MA was breached to the upside today.
The late day seller at the bid price is back at it too.
The US shares didn’t get hit to hard at close like the Canadian shares. It went from $.154 to $.153 on the (SMNPF), but that was still an up day for Scorpio.
Shad
This report actually has actionable information:
snipsnip
With the gold price @ US$16, they are close to breakeven. Hopefully the Galena project will be able to reduce costs in 2015 (predicted: $16.50-$17.50).
I own this stock and think it has tremendous potential if/when silver prices rise above US$18; the current Market Cap is about US$ 50M.
Doh. My link below has the chart that Shad is referring to above. I bought more a couple weeks ago at around 18 cents.
Great points Brian. Yes, I feel there is great potential, they’ve made a good acquisition with US Silver and Gold, they have experience working the silver veins economically, and they are just at a wash currently. If prices stay at $15-$16 too long, or head even lower, then they make become distressed. However, if Silver can get up above $17-$18 or higher, they should have a solid future and the share price should rally 200-400% if Silver returns to the $20s+.
Good thoughts Brian & Dan.
Curious. I used the symbols “>” and “<" and everything in-between was removed from my post. Hmmm … maybe an HTML issue?
Set the chart up the way you want then click “linkable version” then click on the “shorten URL” box and then click on the “Reload with link” button. Then copy the URL and paste it here. Sometimes when the link is too long it doesn’t work. I try not to put in too many new parameters. Good luck… (;-) I agree on the Scorpio chart. $17 silver and they are in the money.
http://stockcharts.com/h-sc/ui?s=SMNPF&p=D&yr=0&mn=3&dy=0&id=p48803456155
The TSX chart for Scorpio:
http://stockcharts.com/h-sc/ui?s=SPM.TO&p=D&yr=0&mn=3&dy=0&id=p48803456155
Cool. Thanks Dan. I’ve never been able to get Stockcharts.com to post correctly, and I wasn’t doing the linkable version, but I’m not the sharpest tool in the shed.
Great chart, and I think it was interesting that in both the US and Canadian shares got far above their 50 day moving averages today.
Thanks Dan!
I agree with you ,Al, so I guess I’m not crazy even though I did not sell my ANV when it was over $40, and rode it all the down to 10 cents. I hope it will come back.