We had a failed bounce in gold this morning
Starting today with Gary Savage we discuss the failed bounce in gold. Gold bounced $16 off the $1,073 level but has since begun to move back down. What does this mean for the metal moving forward?
We then move to the US equity markets and their continued pull back.
Click download link to listen on this device: Download Show
WELL, what do you think about the swiss central bank….buying…????
Maybe it’s “Fed’s got your BANK” 🙂
ha!
It is VERY interesting that Gold went down early morning at tagged the zone we’ve been discussing from July 24th ($1071-$1076 – depending on if you were using the closing price at $1076 or the intra-day low at $1071,2, or 3 depending on your trading platform) and then ratcheted back up.
I didn’t get the impression that we are double-bottoming and do believe gold is under pressure, so we’ll likely see that level tested again, and my targets for a long time for a gold bottom have been:
$1065 – Feb 05th, 2010 trough (there should be some support there)
$1044.70 – the mini-trough from Oct 30th, 2009 (and this also lines up with some minor Fib retracement levels others targeted earlier this year near $1048). I’ve had this out as my main target since February 11th, and thought we’d get there in July, but Gold stop its decline a bit early. I wasn’t sold that July 24th was the final bottom. (just like I was not sold that Nov 2014 was the final bottom at that time). If we get down below 1050-1000 that seems like we finally will have arrived.
$993.20 – Feb 20th, 2009 peak would be as low as I can see gold retracing. This also lines up nicely with the 61.8% retracement that comes out at $990.90 (depending on your start and ending points). I don’t believe we’ll see $800, $600, or $500 gold as that would be all out anarchy financially, and the mining sector would just collapse.
We are getting very close to a bottom in PMs, and personally, I’d just like to get it over with, rip off the band-aid, and then go holiday shopping for all the fantastic mining stocks on sale (and I even may hold on to some of them for the long haul after this final rout). If we correct up from here, then maybe it is a double bottom, but I’d still be hesitant. We’ll see how it goes.
Good luck to all in their investing and get some dry powder ready for buying this dip in the miners. Even if it isn’t the final dip, it will be a great entry point imo.
Sounds pretty good. Too many are getting caught up in the “Final Bottom” calls for gold. November 2014 was an important low and the risk taken here was well rewarded by going to $1,300. Many get caught up in these long term forecasts which are nothing more than a lottery ticket. I would not even consider final bottoms or new bull secular bull markets at this time. When we close above $1,500, then I will consider a discussion of a new bull market.
Good points Richard. Yes the elusive bottom calling since 2012 has been taxing on everyone’s morale, and I definitely took positions in miners in late 2014 to play that run up into Jan of this year. I also played the counter-trend rallies from March-May, and Aug-Oct. However, we are 4+ years into this Bear market, and the Bear is getting tired. Nov 2014 didn’t have the sentiment wash to be the bottom, and July 24th was close, but it still didn’t feel or trade like a “final bottom”. We are arriving at a point where the sentiment will finally be washed out if Gold heads down another $40-$80 bucks and consolidates, so that is why this feels like something more significant. There is also a strong dollar (at present) that is weighing on the commodity complex, and a Fed that is backed into a corner with this crazy “to hike or not hike” debate for Dec.
I love playing the short-term counter-trend rallies in the miners, but will be more at ease holding the miners, when the Secular Bull in Gold resumes, and the Cyclical Bear expires. That is the only reason I’m getting more interested for longer term holdings in ETFs and the quality miners.
I also agree that we need much higher prices in Gold before anyone can break out the champagne and party hats. $1308 is a must, and $1347 and $1382 must fall before I’ll stop looking for the other shoe to drop, and before we can see for sure that the bull is back.
I just believe that for value investors that want to position in miners for the longer term, we are coming up to a very nice window of opportunity. I’m also really burnt out on trending sideways for the last 2 years and am ready for a change of pace 🙂
Good summary, Excelsior.
I personally would avoid all ETFs and focus on select miners. Some will go bankrupt and I don’t want ETFs that include these candidates. That is my strategy. I am holding quality miners here and have been since 2013 due to value and have added over time. I simply believe that the miners have priced gold around $750 so any stabilization toward $1,400 should be extremely beneficial. The current price structure of the miners is reflecting $900-$1,100 gold. For me, it is way too early to determine if a secular bull market in gold is a possibility. So I am long miners and short gold options. Central banks could very well call gold bank in and then loan it out again since they will have currency problems. One would have to see the financial landscape change dramatically for the public to really become involved in gold to change the sentiment. This would be the secular belief.
Richard
Would you mind sharing your top 5-6 select miners?
Mine are: Claude, Kirkland Lake, Klondex (gold/silver mix), Alexco (pure silver), and Pretium (Gold explorer nearing production in 2017).
Still Hemming&Hawing on my other pure silver miner (Americas, Fortuna, or First Majestic)
Thanks in advance,
Brian
Thanks Richard – great comments.
I do have a nice list of Mid-tier and Smaller Gold producers, and a different list of select explorers that may takeover candidates in a rebounding price environment. The same for the Silver miners. However, I diversify a bit with ETFs (like SILJ, SGDM, SGDJ, and TGLDX) for some stability, but to play the overall trend as most will do fine in an improving price environment {even if a few internal companies are decimated.}
BTW – Great list of companies Brian. In my list to Dragonite down at the bottom of the blog, every one of those companies is on my list too. I’d be curious to get your thoughts on the rest of the Gold and Silver list, since you seem to be on a similar wave-length in your selection process.
Liquidity is drying up. That is what causes these swings of this magnitude. One cannot trade these these markets on an hourly or daily basis. You are competing with machines running order flow. THEY SEE ALL OF THE ORDERS! You need to pick your points carefully and wait. CVX was sold down to 90 this morning, then immediately back up to over 91 and then down to 89 all before noon!
As for gold, simple, new low. That has been the script. GLD 100 to evaluate.
If gold is going to make a new low, I hope it does so before a bounce.
Either way, I think this is a good time to buy select miners.
With one day to go this week, UUP is about set a record for weekly distribution volume:
I do as well Matthew. It would be great to get that low in place before the bounce in Gold, or else today’s move would have to be considered a double-bounce off the ($1071-$1076 zone). That isn’t the impression I get off today’s action, but it did snap back really quickly from that support zone (which is to be expected). What concerns me is that PMs are do for a bounce in the cycle world, so that would prolong this process out even longer. I know the market doesn’t give a hoot, but personally, I’d like to just get it over with and change the dialogue to which miners we think will outperform in the improving pricing environment. We’ll get there soon enough.
Cheers!
Whether it’s a serious decline or not, I think the dollar will be heading down very soon.
I realize the correlation is not always there, but if the dollar dropped from here do you feel it would give the commodities a boost, or are they just dancing to the beats of their own drums in your thoughts?
Also, if the dollar turned down from here after just reaching near 100 again, would you consider that a double top from March and in November in the greenback?
Agree with Matthew, but the downside pressure on the markets has placed a very weak to no bid on gold. A move down in markets further should translate to a rise in the dollar. If the markets can drop below 2000, I believe the dollar market would then again take Dec rate hikes off the table and turn down. That could very well be the intermediate top in the USD.
Yes, if things continue like this, then the strong dollar and weak markets will be the cover the Fed use to take the rate hikes off the table. Then when the rate hikes are off the table, then the dollar may dip, markets may rally, and we may see a bid return to the PMs.
At this time, I do think that commodities and gold will benefit from a falling USD.
The dollar does not have to go any higher than the 99.60 it achieved on the 10th for the setup to qualify as a potential double top.
Thanks Matthew.
Richard, I’m not sure that falling stocks are the reason for any weakness in gold right now. I think it has more to do with the expectation that gold is going to break to a much lower low.
The big moves for each, lately, have been opposite each other:
If confirmed, the double top target is 84.32.
Matthew-
What I am saying is that stocks falling = uncertainty. There should be a bid on gold in this scenario. There is not. The market is very heavy here. Gold was bid during the August – October turmoil. As soon as the stocks breached 2000 on the upside, gold began it’s slide. Just pull up a chart, the day the dollar began rallying again, gold began it’s plunge. Dollar up, gold down. This is all short term stuff. Currency is dictating short term moves.
Matthew-
Why are you calling for a USD double top? The USD has broken out to the upside and simply in the process of testing the declining tops trendline. While I do expect a reversal downward soon, it should have more upside in the upcoming days first. Then we can evaluate if it will break down.
Richard – I didn’t call for a double top. I was asked about it and said the potential for one exists. Whether we get one or not, the dollar can move down sharply based on the daily chart. Based on yesterday’s huge distribution volume in UUP, I’m not the only one who thinks so.
The picture has deteriorated further in the last few hours.
GLD looks ready to turn up:
BTW – Good call on S&P breaking to the downside yesterday. I picked up some shared in TVIX to play the volatility this morning once I saw $2069 get taken out. In retrospect yesterday would have been better but I was on the fence, and should have acted on your charts. I’ve done OK though so far today as the S&P takes it in the pants.
I just trimmed back some of my TVIX position at $7.21 that I picked up this morning at $6.39 for a 12.8% profit today. I left the rest on to ride….
Again, I wish I would have pulled the trigger at $5.90 yesterday when I was waffling (it would have been a 22.2% gain then), but wanted confirmation of the trend first. The S&P was teetering between breakout and breakdown but once $2069 fell the writing was on the wall. I left some money on the table but am fine with near a 13% gain for that part of the position. A good days work 🙂
I’m likely going to exit the rest of the position if the S&P makes a run for $2024 that Avi was watching for, but may trim again at $2033.66 (the most recent prior peak from Oct 19th).
Just sold out the rest of my TVIX position at $7.99, and this part of the position earned a 25% return since yesterday. As usual I sold too soon, but I wanted to get out into the volatility spike, as it usually is a short-lived phenomenon and comes in fits and starts. With the S&P around $2025 it is getting into that zone where the correction may take a breather and bounce.
Next week I’ll be curious to see how the markets open on Monday.
Mathew, you have been saying its a good time to buy “select” miners for a long time now.
I bought “select” miners awhile back, dividend payers. Now they don’t pay so I don’t own them anymore.
Maybe a good time to buy “select” miners you intend to trade, and out of the thousands to purchase you might even find 1 or 2 that could be worth holding awhile here, but I would think the money will be made purchasing when we get to just below 1000, 100 or 2 below. A lot less risk at that point.
That is if we don’t go to 400 from there. lol
Im guessing the reaalllll bottom is in there somewhere, just a guess tho of course.
Re: “Mathew, you have been saying its a good time to buy “select” miners for a long time now.”
BB – you, Bird-Listener and probably many others, think it’s as simple as that because you don’t bother with the charts. It is only around oversold lows that I say that. You will not find an instance in which I recommend buying when everyone is excited and the move is already ending. (It’s ironic, but if I did that, Bird would probably never attack me since he’s prone to irrational exuberance when things are up. He’s at his most combative with me when I’m bullish after everything has dropped.)
I use the word “selective” in order to keep the responsibility where it belongs — squarely on each investor. I am not buying dividend-paying miners, fwiw.
I did not doubt you had reasoning Mathew. My point is merely simply waiting might have been a better strategy for many people.
Guess it makes sense if your only talking to traders, actually might be few others than those left now.
People just have to know themselves and whether or not they intend to sell shorter term strength. I consider right now to be a great opportunity even if it is not THE low.
At this stage its hard to find a good mine stock, It may be years before metals prices start to rise in a meaning full way. I am glad i bought disney , and my muni bond funds are slowly moving up. I invested in prosper.com and after 3 year investment i averaged a 9% yield , but i wqs disapointed as i invested hoping to beat the yield i could get on high yield bond fund. It did not beat the HY funds, so i wont invest in Prosper again . S
I guess the bouncing gold ball landed on a spike.
Franco-Nevada Reports Third-Quarter Profit, Announces Dividend
Thursday November 12, 2015
Pan American Silver Reports 3Q Loss But Rise In Silver, Gold Production
Thursday November 12, 2015
Barrick Sells Stakes In Four Nevada Assets; Kinross Among The Buyers
Thursday November 12, 2015
Producing more just to lose more money is not something rational. These miners are their own worst enemy. I am glad I sold this piece of sh*t.
I think buying miners to have leverage in gold and silver is an out-dated concept. These mines are committing suicide. It is a direct consequence of increased self serving of industry executives, a symptom of Wall street model. The executives seek their own reward by sacrificing their company’s interest. It is the shareholders who pay for this. The mines will be damaged beyond repair in this cycle and even PM price does rise in the future, they cannot take advantage of it. They are zombies.
They will be zombies if they are not already.
Yes, I don’t currently hold any of these but they are big players in gold and silver, so I thought some may appreciate how the “Majors” are doing.
Many of them are improving efficiency, increasing throughput, and reducing cost so that when the metals do turn around they’ll be set to jet. Some of it is also accounting gymnastics, because their revenues are improving, but they are also taking impairment charges due to the valuations on their ore in the ground or cutoff grades going down due to low metals pricing….so they show a quarterly loss overall (even when operations are starting to improve). Also, they can’t just shut off the mines in many cases because they’d have to fire everyone and the rehire them in 3-6 months, and mines sitting idle age very quickly, and aren’t producing any revenue. It sounds insane to keep operating at an “overall loss”, but if they turned off the switch and had no revenues & combined with the impairment charges then it would be a much worse situation. Lastly, they brought on too much debt to just stop the mines & mills and need some incoming revenue to pay the debt monster.
Its a mess, and that is why if the prices stay down here much longer, some may really have to close their doors or sell assets. I posted the Barrick article, because that is exactly what they are doing….selling their stake to generate short term cash.
It’s a predatory environment.
The environment has become hostile and they will have to issue more shares or borrow more to survive. After a while, their properties will become bank’s property, no longer their share holders’. These banks will be able to convert their debenture at depressing price when they see the metal price rise. It is hopeless. I own GoldCorp and Silver Wheaton. It seems they are better.
Agreed, but I see them heading down with the rest of the pack as well if PMs continue to pullback. I only have 2 Silver companies at present (Mandalay & Americas Silver Corp) and they are long term positions that are near parity at present. I also hold a position in Sandstorm gold that is still profitable currently.
My favorite Gold companies that I have traded this year have been:
Guyana Goldfields, Lake Shore Gold, Kirkland Lake, Pretium, Claude, Yamana, Argonaut, Klondex, McEwen, Detour, Sandstorm, and Oceanagold (by way of Romarco takeover). I do like Franco Nevada & Royal Gold, but this is why I like the heavy weightings in these in the ETFs (SGDM), and (TGLDX).
My favorite Silver companies that I have traded this year:
Mag Silver, Madalay, Americas Silver, Sierra Metals, Great Panther, Silvercrest (sold on the news of First Majestic taking over), Avino Silver & gold, Coeur, Hecla, and Silver Standard Resources. I have contemplated picking up shares in Alexco, Defiance, Kootenay, Fortuna, and Silver Wheaton.
For PGMs I have traded Stillwater, Polymet, Wellgreen Platinum, and Platinum Group metals, but they are too much of a rollercoaster to hold onto for more than a few days. The only one I still have is Platinum Group Metals for the longer term, but I went slightly underwater lately in that one, and may average down if we get a further dip in the metals. I was half tempted to pick up some Stillwater again today, but held off….Waiting for $8.40-$8.50 range.
Thanks Excelsior/Shad for your postings on the pm miners.
Thanks. What I have in your list are Yamana First Magestic and Silver Wheaton. I regret the Yamana purchase. I sold half last year and saw their share price cut to half again. I made a lot of money by buying Silver Wheaton in 2008 and sold all in 2010 and 2011. I should not have bought it back thinking about repeating the success. First Magestic is much better buy than the rest. I am not going to add miners again in this cycle.
Yes, I just wanted to clarify again, my trades are for 2-3 days to 2-3 weeks in swing trade typically; not buying and holding (at least not yet). I’ve actually done very well trading Yamana (since you mentioned it) on some of its moves in March, August, a mini-move in Sept, and a nice one in October. I held for about 1-2 weeks on average.
This shorter duration trade is what I did on many of the stocks above, and I definitely lost money on a few trades with some of those miners as well, so it wasn’t all roses. However, overall I caught a 6 good takeovers this year in Uranium and gold & silver Jrs merging with Mid-tiers, and some good counter-trend bounces in the miners, fertilizers, lithium, base metals, and volatility. I made more shorting oil than betting on it long, but did a little of both using UWTI and DWTI. I also like XLE, OIH, and XOP for long side of the oil patch.
I hold very few stocks in my “trading account” for the long term, as it has been a roller-coaster in the miners. However, it is about time to start acquiring the quality miners for a longer term hold soon, or averaging down into a position in 2-3 tiers to get a good base built. I was hoping we’d see that dip down in the metals by year end, but if we bounce from here to strong, then it postpones the process.
I am really liking the prices in many miners right now, but am curious to see if they have just a little further to fall. Having said that, they’re an awesome value right now since many have fallen 80-95%, then the quality companies are not over-valued here. There are some companies, mostly Jrs, that will crash and burn in the next 6 months, and that will be healthy for the sector and the final cleanse.
Happy to share mj12
Do you have any companies you really like in Gold or Silver that may we worth keeping an eye on?
****** BALTIC DRY INDEX NOW AT 599 POINTS! CHRISTMAS SALES DOOMED! ******
BDI has never been this low for the month of November! END GAME AHEAD!
John Williams breaks it all down:
https://www.youtube.com/watch?v=AQ8nebtMPGU
Houston, we have a problem!
Yes we do…….can’t wait to see what the bdi will close at today!
NOTE: IT’S CLEAR NOW THAT THESE GUY’S AT THE FED DON’T KNOW WHAT TO DO AT THIS POINT, THEY HAVE NEVER BEEN HERE BEFORE AND THEY DON’T HAVE A CLUE!
Looks like a successful stop-run was carried out on GLD:
DURING THE SPRING OF THIS YEAR THE BALTIC DRY INDEX HIT A HISTORIC LOW OF 535, AND RIGHT NOW IT LOOKS LIKE WE ARE BACK ON PACE TO BREAK THAT RECORD DURING THIS CHRISTMAS SEASON……………….WOW !!!!!!!!!!!!!!!!!
You know that we are in trouble now!
***** NO! THESE MARKETS ARE ALL OVER THE PLACE BECAUSE THE FED DOSE NOT KNOW WHAT TO DO! *****
They have never been here before…….they are clueless, and you haven’t seen nothing yet! BUY PHYSICAL………………………END GAME SOON!
Mark, What puzzles me is:
How is the FED going to shrink the balance sheet? So the FED has this massive balance sheet, the Congress continues to spend and liabilities continue to grow. Yet there is no discussion on any solution to this problem. If a public company was in this position, their debt would be downgraded to oblivion. The ratings agencies are silent because the government can hypothetically continue to print money to cover their liabilities. This is a simple debt spiral. Folks like Prechter and Dent have been discussing this for many years. Congress spends real money in the economy (The budget) which is funded from the sale of notes and bonds to the market. The FED then buys these bonds which is money creation. Where does the cycle end? Meanwhile behind the scenes, there are real economic players which are struggling in positions. Everything is fine because all central banks are doing it until something implodes as a result.
They wont shrink it! China and Russia won’t be buyers their done, they are sellers now and there will not be any discussion because nobody knows what to do……look, they are offering black Friday deals now…….this Christmas is toasted! The ratings agencies are owned now by the fed as well as the media. This whole paper phonzi scheme is now on notice and everything is not fine because the whole wide world is now waking up!
mark, well said!
I couldn’t believe when the major retailers put out Christmas gear before Halloween was even over!
The FEDs problems are evident. They have created a positive circular feedback loop. Exactly on the China and Russia and maybe even Japan.
THE FED IS ” LOST IN SPACE “
I see Timmy’s mom but where’s the Fed?
http://www.kap13.com/wp-content/uploads/2015/06/oTGT6i87XuoqTVveedL6HETK3k2.jpg
The fed is lost………………and there is a very large universe out there!
all I see are awesome turtleneck shirts on everyone.
Star treaking across the universe..
The fed is in a mess & they don’t dare reverse..
Star trek………………………………………………………..
THIS SAYS IT ALL:
https://www.youtube.com/watch?v=YH6j63lhAAc
nice.
the rate hike is OFF any steak dinner bets???
Head and shoulder on the S&P one year chart. MACD has crossed, separated, and is moving down. Any experts want to weigh in?
While you wait for the experts to show up, I’ll weigh-in. It’s going down.
Funny. Matthew I left you remarks up above about what I did today. Again, I should have listened to you yesterday and my 12.8% gain would have 22.2% in TVIX.
Cheers mate.
Thanks. If it makes you feel better, just think of all those times you shouldn’t have listened to me and DIDN”T. 🙂
Funny….but yesterday I was waffling and should have heeded the advice from someone with the charts to back up their thesis. I should have seen the MACD cross and didn’t catch that, but was stretched thin due to work and too many other sectors stealing my attention. The other times I got lucky!
Hope you can see a monthly chart. The big picture is interesting:
Another look at the same chart>
http://schrts.co/47ABb1
DOW DOWN 254 PTS, 10 YEAR AT 2.3 AND RISING………..look for Dow to be down again tomorrow!
Hi!
I find Primero mining very interesting,
All time low!! Nice third quarter release!!
Primero Mining
Here is some thoughts from Seeking Alpha:
PPP data by YCharts
Recent Stock Price: $2.12
Shares Outstanding: 162.49 million
Market Cap: $344.49 million
52-Week Range: $1.93 – $5.02
I have to give a lot of credit to Primero Mining ((NYSE:PPP)): the company recently reported a much better than expected third-quarter financial results, with substantial improvements in all-in sustaining costs (AISC) at its San Dimas and Black Fox gold mines.
While shares have sold off lately (mainly due to lower gold prices), I think the current stock price presents a compelling buying opportunity for long-term investors, especially for those bullish on gold.
First, I’ll give a summary of Primero’s third-quarter earnings, followed by my thoughts on what to do next.
Primero’s Third-Quarter: Higher Production + Lower Costs = Higher Cash Flow
Primero’s total gold production increased by 15% to 68,620 ounces, a significant jump from the 59,673 gold ounces produced last year.
More importantly, the company reported total AISC of $775 per ounce from its two producing gold mines: the San Dimas mine ($454 per ounce) and the Black Fox mine ($1,000 per ounce – a $202 drop from last year). This represents quite a substantial overall AISC drop from last quarter – from $1,036 to $775.
(A summary of Primero’s Q3. Credit: Corporate Presentation)
Revenue in the third quarter was $79.2 million (5% higher than last year), even though the company’s average realized gold price plummeted from $1,251 last year to $1,106 this year.
Operating cash flow before changes in working capital was solid at $20.1 million ($.12 per share), due to lower costs and higher production. This compares to $21.7 million ($.14 per share) last year. This tiny drop in cash flow is very impressive given the 10% drop in gold prices in that timeframe.
As for guidance, the company maintains its previous guidance of 250,000 to 270,000 gold equivalent ounces, which represents a 16% increase from 2014. However, Primero has also lowered its cost guidance – at San Dimas, the company now expects AISC to $740 – $770 and at Black Fox, $1,150 to $1,200.
What’s more: the company’s 3,000 TPD expansion at the San Dimas mine is going as planned, with a Q2 2016 targeted completion date (increasing production from 185,000 GEOs this year to 215,000 by 2017), while Black Fox has maintained a 1,000 TPD level.
Drill results at Black Fox has been very encouraging – on Oct. 26, the company intersected 5.1 g/t gold over 56.7 metres and 4.8 g/t gold over 52.4 metres at the new Froome zone, located 1 kilometer west of the Black Fox open pit, so considerable exploration upside remains.
Ultimately, Primero plans for Black Fox to increase production to at least 100,000 gold ounces annually (up from 75,000 this year), but a larger, higher-grade resource at Black Fox and new resources from the neighboring Grey Fox deposit could mean even higher production levels in the coming years. It looks like I may be proven wrong about Black Fox, as I was previously very critical of the acquisition by Primero.
Balance Sheet Update
The company ended the third quarter with $43.1 million in cash (a net increase in cash of $3.27 million this quarter) and $75 million in an undrawn credit facility, giving it total liquidity of $118.1 million.
As for debt, Primero ended the quarter with total debt of $123 million – this is made up primarily of long-term debt of $63.5 million and $52 million in current debt ($47.3 million of which is in the form of convertible debentures that mature within a year)
I think Primero will likely refinance this convertible debenture and perhaps some of its other debts, and I don’t see the company’s debt as a big risk going forward due to its lower cash costs and strong liquidity position.
Primero’s Current Valuation
Primero’s stock currently trades at an EV/EBITDA of just 4.93 and an EV/FCF of 7.92. This makes the stock pretty undervalued compared to some of its peers, such as Alamos Gold (NYSE:AGI) which trades at an EV/EBITDA of 10, and New Gold (NYSEMKT:NGD) which trades at 7.16.
I’ve definitely softened on my previous bearish stance on Primero. In my last article on the company, I argued that Primero overpaid for Black Fox and unnecessarily diluted shareholders for the acquisition, and I also criticized the decline in cash last quarter. But this quarter was certainly a great one for Primero, with a substantial reduction in AISC, an increase in the company’s cash position, and excellent exploration results at Black Fox.
In my opinion, long-term gold bulls should consider buying here, as the stock trades near 52-week lows and at an attractive valuation.
Thanks for the post Blue. Yes Primero is an interesting company that got slammed with the rest of the sector. I have it on my watch list, have researched it in the past but haven’t kept up to date, so this was a nice refresher.
It looks like we are fighting an invisible SPT (Surge Protection Team) in PM.
Refer to your question about FED trading. CME has documented to have central banks as clients and offer discount to encourage their trading. French central banker said last year that they are trading gold almost every other day.