A technical outlook on Klondex Mines, Brazil Resources and Silvercorp Metals
Rick Ackerman kicks off today by sharing his insights on three resource stocks that you asked about. Please keep the questions coming and remember Rick is able to share his thoughts on any stock.
- Klondex Mines – KLDX & TSX:KDX,
- Brazil Resources BRIZF & TSX.V:BRI,
- Silvercorp Metals – SVMLF & TSX:SVM
If possible please email Cory at Fleck[at]kereport.com for your ongoing questions regarding companies.
Click here to visit Rick’s site and find out more about his services.
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Absolutely. Much appreciated Rick A!
Yes,Rick Ackerman absolutely provides value in these segments.
Al and Cory,could you ask Mr Ackerman if he could provide a technical Outlook for,
IDM Mining-IDM.V
Excellon resources-EXN.TO
Dalradian Resources-DNA.TO
Thank you,
I would be remiss if I didn’t check in and share some of my observations regarding what is happening in the gold market right now.
I find it very appropriate that on the 45th anniversary of Nixon taking the U.S. $ off of the gold standard that this week (and last) the hijinks, manipulation, and out right criminal activity regarding gold has still not stopped, nor abated, on the contrary it has only gotten much much worse.
I was around when Nixon back stabbed the world but I hear tell about.
Nothing has changed!
The price action we have witnessed in gold these last several days has been nothing short of criminal.
Several times gold has made big moves, up $15 or $20 only to be attacked and taken back down swiftly and sharply.
There is no doubt to any thinking person that gold wants to break out and it is being suppressed, capped, squashed. Call it what you will.
Anyone who doesn’t see this or chooses not to believe it is being willfully ignorant.
And you know who you are.
There is coming a day when the SHTF and that day is coming soon.
The f$&@#% bastards responsible for this need to rot in jail and served one thin slice of molded maggot filled bread a day for their daily sustenance as far as I’m concerned.
And I mean it! That is a fair recompense as far as I’m concerned!
If someone got caught fixing a race or doping a horse they would be banned from the track.
These bastards have complete impunity, worse they get rewarded.
Does anyone really think technical analysis or Elliot wave still applies?
This is all bs
In the mean time I am now a doubting Thomas, until I see I will not believe.
Gold could be up $100 in a day.
Until I see it close that way I will not believe!
It is obvious these scoundrels have complete control over this market and can do whatever they want.
Time to get back to the horses, where there is still a sense of honesty, tradition and beauty.
Nice to know it still exists somewhere in this world.
Time to make some wagers and find some moral redemption.
Screw these markets, it’s all a fraud run by bastards who are pulling the strings.
So until I see with my own eyes I will not believe!
James, technical analysis ALWAYS applies. Those who maintain otherwise simply do not understand.
JTL:
If gold was suppressed from $252 to $1923 and silver suppressed from $4 to $50, suppression is the most meaningless factor in investing.
Manipulation/consipracy/suppression are just other words for “I am a sheep and will believe anything at all, no matter how stupid it is.”
“Bank loan profits, money velocity, and gold stocks versus gold have all been in multi-decade bear cycles, but the winds of inflation are beginning to blow, and gold stocks are the biggest canary in the inflationary coal mine!” – Stewart Thomson
http://www.321gold.com/editorials/thomson_s/thomson_s_081616.html
So Silvercorp is legit? Honest about their grades and prospects? What does Muddy Waters say? Anyone investing in Silvercorp should assure themselves that what they hear is true.
Stephan,
Can you please post a link to a Muddy Waters report on Silvercorp, if there is any ?
Cheers,
LPG
Ok…. just checked about it… it’s a 2011 thing…
No need for the report link.
Cheers,
LPG
Silvercorp chart using the OTC (SVMLF). I started buying in the high $.40’s in Dec of 2015 and added in Jan & Feb up until it got to the high $.60’s. Since then I trimmed on the rips, and sold on the dips, but have had a fantastic run with Silvercorp.
When Brian asked me earlier in the year for my favorite Silver stock – I mentioned Silvercorp was my favorite producer. The AISC the put out (however they calculate it is definitely in the very lowest quartile). I’ve spent very little time on the China concerns or conspiracy theories about SVM, but have not regretted the profits. 🙂
http://stockcharts.com/h-sc/ui?s=SVMLF&p=D&st=2016-01-01&en=(today)&id=p90305090730
I have mostly phased out the position now, to rotate into more undervalued opportunities in the Silver space, but at the end of last year and beginning of this year, Silvercorp was a clear value.
As always, I will publicly thank Dragonite (Lawrence) for brushing away the BS surrounding their operations, and for causing me take another look.
Much appreciated!
The info from Rick ,is very much appreciated.
Excelsior—
Care to share a few of those undervalued opportunities in the silver space?
Thanks, K
Hi Karl. There are about 2 dozen of the cream of the crop Silver companines that have had fantastic runs in 2016, and that is because they are solid, however some are now bordering on frothy. Many of them are some of my favorite companies, but there are still some companies that I think represent more potential value in the mid to longer term, but they are riskier. Many of the most established producers, development companies, and exploration companies have already put in huge moves, but they’ll still do awesome for the long term.
For the mid-term, there are some companies that may do a little catch up, a in my opinion (USA.TO) (USAPF) Americas Silver, (IPT.V) (ISVLF) Impact Silver, (SCZ.V) (SZSMF) Santacruz Silver, and (MYA.V) (MYAGF) Maya Gold & Silver are very undervalued small producers.
(SMT.TO) (DBEXF) Sierra Metals and (MND.TO) (MNDJF) Mandalay Resources are 2 mid-tier metals producers, with a strong silver component, that are undervalued compared to their peers. (GPR.TO) (GPL) Great Panther has taken it on the chin the last 2 months, but longer term they will be fine, so they are a better value at present than they were and than some of the other mid-tier Silver producers.
(TAHO) Tahoe Resources is earning good revenues and cashflow as a major and they have been one of the worst performing Majors in the Silver space, so they have lots of room for upside growth.
moving into higher risk / higher reward ideas in Silver……
(SBR.TO) (SVBRF) Silver Bear Resources is a near-term Silver producer in Russia that is undervalued due to both perceived jurisdiction risk and lack of visibility. (MSV.TO) (MISVF) MInco is another development-stage company that is undervalued and hasn’t moved as much as many of the other Silver development companies. (HUSIF) Nicola mining is another development stage Silver company with a fully built mine & mill that just started tolling ore to bring home the bacon. (BBB.V) (BXTMF) Brixton Metals has the past producing Silver mine in Ontario, and the Gold/Silver project in the Golden Triangle BC. (CUG.V) (DFCPF) Cyprium Mining just went back into Silver production, but have been punished because they don’t have a defined resource, and have debt from sins in the past. I still see them as a unique opportunity to get involved with the newest Silver producer on the planet (this month) and see how things develop over the next few quarters.
For speculative Silver companies there have been many that have taken off like rockets, but there are some that there is still good value in (KTN.V) (KOOYF) Kootenay Silver, (BHS.V) (KXPLF) Bayhorse Silver has 2 prior producting mines that they can fast track into production due to unique laws in their jurisdiction. (DNCVF) Defiance Silver has high grade past producing district scale potential but they need to raise some money, JV, or get bought out to take their project forward. I’ve speculated about them adding the prior CEO and founder of Scorpio Mining to their board that (USA.TO) Americas Silver may give it a go. (MAN.V) (MMNGF) Monster Mining has 2 key land packages (1 next to Alexco’s mine, and 1 is next to ATAC resources gold asset), so they are ripe for a great discovery or takeover. (LVNVF) Levon Resources is still undervalued compared to peers and retained some assets from the last cycle that most have forgotten about. (AUU.V) (AUSVF) Aura Silver seems like an interesting risk/reward proposition to me. (KS.V) (KLSVF) Klondike Silver has a mill and land where there were 150 prior producing Silver mines and was one of the very few Canadian pure Silver miners in past cycles.
***Again, that is not to say that other companies like the Hecla, Silver Standard Resources, Silvercorp, Endeavour, First Majestic, etc….. aren’t going to have awesome rides….. because they will. I just noticed that many of the more common names have jumped up so much so fast, that there may be larger percentage moves in the mid-term (6 months) in some of the lessor followed or forgotten stories as they start to resurface…..
To clarify, many of the stocks I mentioned have also had great runs, but some still have more running to do to be properly valued with their peers based on exploration upside, mine improvements that will accelerate their production revenues, enterprise values that are much lower than peers, etc…. There are still plenty of interesting companies that only have minimal or no exposure in the Silver ETFs. Maybe that will change and they’ll be rated higher, but if someone wanted a less risky way to play the miners they could always purchase SIL and SILJ for exposure to the main miners, and then pepper in 5-10 more risky plays with a goal of out-performing the ETFs. One has to be prepared to lose big and win big with that portion of your trading account, so I would advise someone with less money to allocate to be much more conservative in their allocations and pick the household Silver names that will continue to perform well or the ETFs SIL & SILJ.
Americas Silver Corp – Corporate Presentation:
http://www.americassilvercorp.com/i/pdf/presentations/presentation20160722.pdf
Thanks, Rick, for looking at KLDX & BRIZF. You confirmed what I see, but I was beginning to worry a bit about BRIZF (I’m still in the red after reentering at too high a price). But I think she’ll resume her climb (been good to me, so far, this year!).
And thanks to Al, Cory, Chris, LPG, and Doc for sharing your market knowledge with us, too.
I can’t think of any stock more pumped over the last few years than Brazil Resources. It gets mentioned or is advertised on almost every podcast I listen to by everyone from the Casey crowd to Katusa to Stansberry to Frank Curzio. I wouldn’t touch it with a ten foot pole. Rick Rule just mentioned it on BNN and seems to agree….
http://www.bnn.ca/video/rick-rule-discusses-brazil-resources~929249
Rick”I LOVE THE SMELL OF SHORTS BURNING IN THE MORNING” Rule is a straight shooter.
It would do one good to sit up and pay attention when Rick talks Jr mining companies.
Everybody blows a call once and a while,but over time Rick is one of the best.
Follow the money….it turns out Casey/ Katusa participated in private placement with Brazil Resources in a big way. They are tied in with Stansberry and Curzio is ex-Stansberry and Katusa buddy. No wonder it is being pumped so much. Google IKN, Brazil Resources for more.
Excelsior—
Thanks to your past commentaries, many of these names I have on my radar, but don’t have a way to value them. I’ve recently picked up GPL, and have done well with buying the dip on Canarc: CRCUF. Lots of food for thought here, much appreciated. K
Thanks Karl – Always glad to discuss the Silver stocks. Yes, Canarc has been a fascinating stock to watch this year. I don’t have shares personally, but do follow their news and was surprised when they sold their Oro Silver and El Compas Mine to Endeavour a few months back and wondered what the next project would be?
Coral Gold (GLHRF) is in a very similar position with their sale of the Robertson Property to Barrick. Yes it is a good thing to realize some value of their assets….but what next? An acquisition?
These are going to be fun to watch moving forward.
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Canarc Retains Gordon Neal for Corporate Development
Vancouver, Canada – August 10, 2016
I hope everyone realizes that Rick provides more value in these segments than most newsletters can sell you.