Rick Rule on what he will be targeting next year
Exclusive coverage from the New Orleans Investment Conference. Cory Fleck attended the show again this year and sat down with a number of Keynote speakers and exhibiting companies.
In this interview Cory sat down with Rick Rule to discuss his outlook for gold and precious metals stocks into 2017. Rick had some interesting comments on the sectors he is looking forward to investing in next year.
Click download link to listen on this device: Download Show
As always we love to hear what you all think of the companies and speakers we bring on the show. Please email Cory directly at Fleck[at]kereport.com if you have any further questions and comments.
I was lending my “ears” to Rick Rule and Cory. Always a good discussion guys.
When Rick Rule speaks,i listen,
http://www.freakingnews.com/pictures/26500/Jim-Carrey-with-Big-Ears–26783.jpg
Maybe J. Carrey could get Lynch’s job
๐
Canadian double talk.(just joking) ๐ .
DT…. how about those Cubs….
Chris T…. is most likely happy….
OOTB, The Cubs were the better team but only marginally and I think the score reflected that but it was some game, the rain delay in the ninth was probably a first for World Series history. Baseball is a game of statistics. DT
Maybe Trump can get a rain delay..
Question to Matthew (and EX): Are you still fan of Pure Gold? I’m looking to add another Canadian Miner to my PF. I have done lots of research (and I now have 6 solid, gold juniors in my PF) and it all points to Pure Gold for high grade, safe country, potential, chart.
Thanks in advance,
Brian
Brian – I still like Pure Gold as they have a rock solid management team, and have continued to knock it out of the park with drill results at Madsen. There have been some that have worried about the continuity of the deposit overall, but I’ve been watching their drill results and they continue to expand and define the deposit.
The share price has already put in quite a move this year and has been topped out and consolidating downward, but the small correction it had, relative to other mining stocks is indicative of the stock being in strong hands holding for the bigger picture. I believe some of the warrants have been free trading and this has added to the selling lately, but most of that was just consolidated and absorbed.
I continue to like Pure Gold as a solid exploration company moving into the Development Stage. Sometimes there is a lull when a company hits this part of the mining cycle, but if they continue putting out such good drill results then it will underpin the project nicely.
Mark O’Dea has been buying up shares in the open market if you check the insider trading, so that is another vote of confidence.
We’ve discussed this in the past but AngloGold Ashanti having a 12% stake and Rob McEwen having over a 10% stake is also encouraging, as I’m sure both parties did their due diligence before getting onboard.
Hey Ex, I don’t like Pure Gold’s name I think they should call it Poor Gold, Gold is The Rodney Dangerfield of commodities, it gets no respect! DT
Ex, I just knew you would get it right, or should I say R.O., for the people that weren’t around for the party in North America in The 1960’s that means Right On! DT
Brian – if you don’t mind sharing what are the other 6 Gold juniors you have? If memory serves you liked Klondex, Integra, Millrock, Strategic Metals, and at one time Kirkland Lake? I know Claude and Lake Shore Gold got taken out, and you rotated into different names, but just curious what you were liking these days.
As far as Silver companies we are very much aligned (Impact Silver, Americas Silver, Alexco, Brixton, Avino, Excellon). I also hold some Silvercorp, Aurcana, Cyprium, Silver Bear, and a few other speculative explorers. I’m thinking of adding Santacruz, Bear Creek, and maybe Bayhorse or Kootenay if prices continue to slide into year end. I like about a dozen more Silver names, but as discussed, you can’t own all of them.
Cheers.
Endeavour Silver Reports Q3 2016 Financial Results and Earnings
VANCOUVER, BC–(November 03, 2016)
McEwen Mining Produces 36,496 Gold Equivalent Ounces in Q3 2016
TORONTO, Nov. 03, 2016
EX
That list of gold companies is about right ๐
The list of silver companies is ALMOST right
I’m not posting much anymore about my stocks or my strategy.
I was just doing research on Pure Gold and wanted some expert advice ! ! !
Brian
Gotcha. Good luck sir.
Brian, I no longer own PGM but would be happy to buy it again when the time is right.
http://stockcharts.com/h-sc/ui?s=PGM.V&p=W&yr=2&mn=7&dy=0&id=p51831003788&a=445306505
Thanks, Matt … I’m watching the chart.
Matthew – based on that weekly chart, does it look like it has topped and rolling over to you, now that it has broken below the 30 week MA?
If so, where would you expect to see support come in? (Fib, MA, Trendline?)
I see you noted the MACD, Slow Stochastics, Full Stochastics, and ADX crosses as well to show were the trend changed.
Would you just wait for those indicators to play out the bullish pattern until they narrow and cross back, (indicating a change back into an uptrend)?
I think it is consolidating bullishly based on the fact that price has held up very well since the weekly MACD “sold” from a high level several months ago.
As you know, I look at more than just price when deciding if something looks appealing or not; so, assuming that the miners in general don’t fall apart, I consider the .382 fib level a good place to start buying. On the other hand, if the sector starts to do very well, sooner rather than later, I wouldn’t hesitate to start buying at a higher level with profits booked from any standouts in my portfolio. PGM has consolidated long enough that it can finally rise easily again if the whole sector is on the move.
It has a lot going for it, but it’s priced like it — at least relatively speaking, at the moment.
Here’s a daily chart that I posted months ago:
http://stockcharts.com/h-sc/ui?s=PGM.V&p=D&yr=0&mn=9&dy=0&id=p31920998360&a=463440721
Thanks Matthew. Good thoughts about if the sector get going that it may just turn up from this consolidation level and just move higher. Yes, it is a bit on the pricey side, but again, their drill results were very impressive, and the whole package (management, project, financials, key stakeholders) are in good order.
Like you said, it may be a good profit dumpster from booked profits on other trades.
As for the MACD indicator in a Bull market, agreed, it just may indicate sideways consolidation and not the selloff. The MACD in a Bull is certainly no:
Yes, it has it all: location, grade, and one of the best management teams. The “problem” is, quality means less risk and less risk usually means potential upside.
Should read: …LESS potential upside.
Agreed on the more “perceived risk” the better the opportunity. This is has been a common ingredient in many of the stocks I’ve had outperform. The market can punish a company because of unknown geology being worked out, perceived jurisdiction risk, a potential permitting challenge, changes to Directors and management teams, not understanding the infrastructure already in place, not understanding the secondary projects in the pipeline, or changes to recovery rates, etc….. etc….. When all the boxes are checked right up front, the stock typically carries a premium pricing valuation, but sometimes its nice to own the stallions.
Personally, I love the hunt for the misunderstood companies, turn-around stories, companies showing marked improvement that is going unappreciated, and companies with high leverage to rising prices due to the impact on their margins.
In a nutshell, substantial undervaluation makes up for a lot, especially in a bull market (which “lifts all boats”).
….but will the rising tide lift all nutshells?
Well… that depends on what’s IN the nutshell. ๐
Scorpio Gold Announces Change In Management
Vancouver, November 2, 2016
B2Gold Reports Q3 2016 Results and Revises 2016 Guidance Upwards
VANCOUVER, BRITISH COLUMBIA–(Nov. 3, 2016)
Kirkland Lake Gold Reports Record Earnings of $0.21 Per Share in Q3 2016 and Increases Full Year Guidance
TORONTO, ONTARIO–(Nov. 3, 2016)
Torex Gold Announces Q3 2016 Financial and Operational Results
TORONTO, ONTARIO–(Marketwired – Nov. 3, 2016)
Wesdome Gold Mines Announces Q3 2016 Financial Results
TORONTO, ON–(November 03, 2016)
Asanko Gold to Proceed With Phase 2A Expansion
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Nov. 3, 2016)
Next year, you will all be talking about Mexus Gold ๐
I’ve been talking about Mexus Gold most of this year. It’s been up over 2500% at one point, so it was an exciting story this year for sure ๐
They just announced a slight delay in commencing production due to weather challenges and delays importing certain supplies. Looking forward to an announcement in November that they’ve started things up.
Cheers!
Actually, that delay messed my plans up a Little bit but a few weeks more of waiting is common in mining (sadly). I hope a steady stream of news follows after that on other Projects. They should be doing +100 000oz late 2017 if it all pans out..IMHO that is.
Agreed Rich2B – There are no shortage of challenges in the mining business, but it just sounds like they were delaying for a few weeks and should announce production this month. Personally, I’d be very surprised if they produced 100,000 oz in 2017 and figured they would stair step the production up from 30K-50K in 2017, to 60K-80K in 2018, and then 100K+ in 2019. Did they say they would be doing over 100K ounces next year?
Yes, I’m also curious to hear some updates on the other projects that Mexus and MarMar are lining up next in the cue.
As for the delays messing up your plans…. (what were your plans out of curiosity? ๐ )
Were you planning to sell on the news, buy more on the news, or just bust out the champagne?
Excelsior. No they have not said anything in regards to those production numbers. That are my own assumptions.. I base that on them getting San Felix back and are able to put it into production. Also, I have hopes they will find themselves a bigger mill for the high grade vein at the St Elena mine. I might be too optimistic, but it is fully possible. Won’t complain one bit if it becomes lesser than that. Dividends will come to us one day as well.
Sounds good to me. A bigger mill down the road would help the cause in ramping up the throughput & production. Excited to get an update later this month on how things are progressing.
Some math on my part, Excelsior. Hope I don’t make a fool of myself now…..
,You are probably more skilled than I am, but this is what I base my ounces on. Forgive me if I am wrong or if you have other sources. St Elena Heap Leach = something like 45 000oz + St Elena high grade vein = around 6-7000 oz, using the current 80t/day mill. I know there have been whispers that they will go for a bigger mill one day. If that indeed turns out true, let’s say 3x output, we suddenly have 20 000oz instead of the 6-7000, Which could put us at around 65 000/year.. I KNOW i have read a post somewhere that said that San Felix could produce roughly 35 000oz AuEq, but also that it could be brought up to 70 000AuEq. If we split that 50/50 with MarMar, we get Another 35 000oz == 100 000oz a year.
If I am wrong in this, I do sincerely apologize. It usually never ends up perfect. ๐
Topic of the day…..all “ears” on the DOJ… “Lynch”them all. ๐