Are the summer doldrums here to say?
Doc helps Al and Cory wrap up the markets as we all look forward to news events that could help drive the markets. We debate whether political or financial events will be factor that drives these markets through the end of the year.
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Yep. Been doing the same, waiting to add back position on larger pullback. The release today about the ability to raise 50 million over 25 months is reason to take pause & evaluate.
” The shelf prospectus filings, when final, will allow Alexco to make offerings of common shares, warrants, subscription receipts and/or units up to an aggregate total of Cdn$50 million during the 25-month period that the final short form base shelf prospectus remains effective.”
Alexco has fantastic grade, and there is a renewed focus on the Yukon miners lately, their environmental services business is helpful, and they should still have a nice pop when they announce they’re going back into production…. however, it appears dilution is on the menu.
Fwiw, I still have 38% of my IPT shares and 62% of my USA shares (based on my January positions which were by far my largest ever). In $CAD, my IPT stake was 12% larger than my USA position at today’s close.
The last few weeks I’ve been trimming back some of my Silver stocks like Silvercorp, Alexco, Avino, Aurcana, but I haven’t really trimmed the Americas Silver Corp and Nicola Mining core positions in place (as I’d already trimmed those previously and am sitting pretty with a free ride in both).
I did completely sell out of Great Panther a while back and was considering getting some position back in it, but GPL has continued to show weakness. I also just sold out of my Dolly Varden on July 11th when they responded to the Hecla takeover offer. In my opinion there could be a few wrinkles there and that deal could blow up. Then again it could get modified or someone else may put in a counter bid. Who knows? I just had a really nice profit and erred on the side of caution.
There is one new Silver company I picked up and that is Cyprium Mining. They just put their Silver mine back into production, and it will be interesting to see that story develop.
Lately, I’ve been rotating some of my funds set aside for mining allocations back into undervalued gold development stage companies and small gold producers. There are some real values to be found in those areas at present in comparison to many other mining stocks that have gotten a bit frothy.
Doc said “A Turkey uprising…”…. hee hee…. The picture in my mind is massive flocks of turkeys revolting right before Thanksgiving…..
I can tell my grandchildren about “The Turkey Uprising” of ’16…”yep kids. It was a horrific uprising. It was the gobble that was heard around the world.. yep. I’ll never forget it…” And the grandkids beg to hear more on how we all survived….
Then cue Hitchcock’s movie “The Birds”. I look at them with grim eyes and say…”this is how it all started….”
I got wild turkeys around where I live. And they are the most polite birds. They would never have an uprising.
You guys are funny. Ya bunch of turkeys….. 🙂
One of the problems with Islam is that it is perfectly acceptable to lie if you believe it is necessary for the furtherance of your religion.
With lists of people ready to be arrested, the numbers of Erdogan’s adversaries in police, judiciary, and army now arrested, this is beginning to stink to high heaven.
Was the coup real or an instigated false flag operation to ensure the elected dictator’s rule for decades. We may not know the truth for some years.
Good luck, it never hurts to take a profit.
Last I heard AXU had its primary mine on care and maintenance for about the last three years, which is most sensible in a bear market.
However this, I believe is a cyclical bear market just ended with the start of a another cyclical (or more probable secular, yet to be determined, bull which started about the turn of this year.
The AISC if I remember correctly is about $15 for AXU, WHICH HAS VERY HIGH GRADE.
So I would expect AXU to use the money for further exploration of its extensive land package, and then resume production once the silver price increases another 50%.
This behavior is much better than high grading just to keep the mine open when the silver price is low. In the meantime now money seems easier to raise they might as fill the treasury for further exploration, but not production.
Good points CFS, and I agree that they’ll be utilizing the money for operations, exploration, and working towards putting the mine back into production.
For the longer term Alexco is set to get things moving again right as the bull market is starting to resume. If Silver prices hung out in the $20-$30 area for the next few years, then they’ll do just fine. Their targeted AISC is estimated at $14.50.
If memory serves, they expect permits any month now to pull the lever on getting things going, but maybe they need to raise funds to get everything optimized again at the mine on care and maintenance, and to staff back up.
Alexco also has the streaming deal in place with Silver Wheaton, that some see as a drag on revenues, but it was less dilutive than the announcement today about the option to raise $50 million over 25 months using common shares, warrants, subscription receipts.
I’ve reduced down exposure to very small core position, because I want an iron in he fire if they do announce they are going back into production, but I will get mostly out of the way of the paper party.
Thanks,for sharing,when you buy/sell/trimm Matthew and Excelsior.
I have also been trimming the ones with extended charts.
May you have a great rest of the week in your investing Pete.
Are there any Precious Metals, PGMs, or Base Metals companies you are liking right now?
Excelsior,
Yes, i like,
Americas silver corp
Dalradian
Alexco
Roxgold
Excellon
Midas gold
First mining finance
Impact silver
Barkerville
Silvercorp
Minco silver
Integra gold
Ivanhoe mines
Sandspring Resources
Kootenay
Belo sun
Sabina
Perseus
Timmins
Jaguar mining
Wellgreen
Strategic metals
Mcewen
Kinross
Klondex
Guyana goldfields
Pretium
Sandstorm
First majestic silver
Some of these i bought thanks to you and Matthew(not investment advice of course)
I have been mostly in buy and hold mode since last year,i have trimmed some along the way up though.
No surprises on that list i guess,and I like many others too..
Pete – That is Great list.
Yes, I either hold or have traded many of the names on that list in the last year or two, and the others are on my close watch-list under consideration. You’ll do well over the next few years with a group like that.
Excelsior,
I´m thinking of buying Nicola mining,when/if it hits the lower BB band,what do you think? Do you think its going lower?
Not investment advice.
Likely, but personally, I’ll be acquiring more if it pulls back.
I don’t believe most of the investing marketplace is aware it is the relaunch of Huldra Silver, nor have they properly valued their fully built mine, mill, or their current startup of tolling agreements with other mines. I’m anticipating a 10 bagger or higher over the next 2-3 years.
Thanks,Excelsior.
Glad to discuss mining shares any time.
The SGE closed with the silver price at 20.01, but that price is being attacked in the US.
This is going to be an interesting day, with stock futures negative, to see the ESF try to prop up the markets.
Pd up $15
Turkey lock down…Erdogan suspends 21,000 private school teachers
http://www.graceland-updates.com/images/stories/16jul/2016jul19xau1.png
“This is probably the most important chart for any gold stock investor to follow. It’s the quarterly bars chart of the XAU gold stocks index compared to the price of gold. Gold stocks have been in what is roughly a twenty-year bear cycle against gold, and I’m adamant that the rise of the “perpetual bonds era” is going to see gold stocks outperform all the world’s asset classes for the next several decades. It’s far more important to buy gold stock price dips than corrections, given the dramatic upside potential versus the modest downside risk! For gold stock investors, happy times are not just here, but here to stay!” – Stewart Thomson
Stewart is right; no doubt about it.
Thanks,for posting those articles,Matthew.
Ditto
Ditto to CFS
I have been selling AXU everyday for the last two weeks and now have less than .5% of my January position. The press release below makes me feel pretty good about it.
http://www.alexcoresource.com/i/pdf/nr/2016-07-18_NR.pdf