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Is the crude oil bounce over with and an update on silver

Cory
December 7, 2016

Today with Rick Ackerman we look at oil and update our comments from yesterday on silver. Crude had a great week last week after the OPEC decision to cut production (even though we have not seen any actual cuts) but is the bounce over? As for silver, Rick shared an outlook for silver to hit $17.29 in the near term. The pop today has brought us very close to that level but we would still like to see the price break through.

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Discussion
59 Comments
    Dec 07, 2016 07:02 AM

    SGE number. …is the real number

    CFS
    Dec 07, 2016 07:04 AM

    Silver jumped up on opening of SGE, which is acting like a magnet. Currently $18.57
    Prices are ceasing to be totally determined on COMEX.

    Dec 07, 2016 07:15 AM

    Indian economy crashes as ” Modi the moron”, black money theory collapses . Zero hedge

      Dec 07, 2016 07:54 PM

      India confiscates gold …even jewelry……

        Dec 07, 2016 07:56 PM

        guess who keeps the gold…………..anyone like excessive govt morons………..

          Dec 07, 2016 07:57 PM

          if you go to INDIA …..DO not forget to leave your rolex at home……

    Dec 07, 2016 07:18 AM

    None of this matters

    Trumponomics rules the day!

    Soaring stocks!

    CFS
    Dec 07, 2016 07:21 AM

    Regarding oil, demand is low because the world economy is SIMPLY NOT FIRING ON ALL CYLINDERS. (To measure the world economy by the height of stock market indices is pure folly, because the market indices NO LONGER MEASURE THE ECONOMIES; they are rigged by central banks and governments to givethe appearance of health.)

    Sure oil can drop to $30, but it cannot stay there long, because the cost of production varies from low teens in the Middle East to $70 for marginal fracking locations.
    As forward price hedges, which were created back when oil was above $100, drop off, so will production.

    Dec 07, 2016 07:21 AM

    Dave Stockman says ….. short the S&P 500

      GH
      Dec 07, 2016 07:28 AM

      David Stockman must go!!!

        Dec 07, 2016 07:29 AM

        😉

          Dec 07, 2016 07:45 AM

          S&P…..80 % of stocks flat as a pancake….per Roseberg

            Dec 07, 2016 07:48 AM

            Energy and financials up …benefit of deregulation…on Trump victory.

            Dec 07, 2016 07:53 AM

            This is not a Trump rally …per Roseberg…see Zero hedge

            Dec 07, 2016 07:10 AM

            Not a Trump rally but just the time of year. S&P gained well over 200 points the past 2 years in the Nov-Dec period.

            GH
            Dec 07, 2016 07:18 PM

            Clearly, Roseburg too must go.

            Dec 07, 2016 07:22 PM

            Yes, anyone with a brain must go!

      Dec 07, 2016 07:08 AM

      He appears to have been wrong for a long time.

    Dec 07, 2016 07:22 AM

    Resource Capital Gold Corp. (RCG) (GDPEF) – Eric Sprott’s Most Recent Investment – And You’ve Never Heard Of Them

    Palisade Research – December 5, 2016
    #GOLD #Development into near-term #Production

    http://palisade-research.com/resource-capital-gold-corp-tsxvrcg-eric-spotts-top-pick-for-2017-and-youve-never-heard-of-them/

      Dec 07, 2016 07:29 AM

      This development story looks pretty interesting. Any other Resource Capital Gold Corp investors lurking here on the KER ?

        Dec 07, 2016 07:33 AM

        (RCG) (GDPEF) Resource Capital Gold Corp – AN EMERGING NORTH AMERICAN GOLD-SILVER PRODUCER

        OCTOBER 2016 – Corporate Slide Presentation

        http://www.rcgcorp.ca/assets/docs/RCG_Corporate_Presentation_October_2016_2.pdf

          Dec 07, 2016 07:49 AM

          Resource Capital Gold Corp. (RCG.V)
          $0.29 up + $0.03 (11.54% gain)

          Resource Capital Gold Corp. (GDPEF)
          $0.22 up + $0.03 (16.79% gain)

            Dec 07, 2016 07:15 AM

            also in that Palisade Research piece:

            “The mine should achieve full production in 2017, and the company believes that it can achieve full 300 tonne-per-day capacity earlier than the PEA suggests (end of Year 1). It definitely helps that both the mine and the gravity flotation mill are fully permitted.”

            “…Because the mine has already been operating, it has excellent infrastructure in place. It is accessible by gravel road and is located just 135 kilometers from Halifax, Nova Scotia’s capital city.”

            “Under the terms of the agreement, the company has 90% ownership of this mine. It will pay a total of US$9.5 million for it over 5 years. After that, it will owe its counterparty a 1% NSR.”

            “The mine has potential to produce up to 30,000 ounces of gold per year. In addition, the company says that Dufferin will become its central processing mill. It will operate a ‘hub-and-spoke strategy’, utilizing its cash flow to pay for exploration and development at the company’s other assets, namely, Tangier and Forest Hill, as well as further development at West Dufferin.”

            http://palisade-research.com/resource-capital-gold-corp-tsxvrcg-eric-spotts-top-pick-for-2017-and-youve-never-heard-of-them/

        CFS
        Dec 07, 2016 07:49 AM

        I liked the IRR, but it still has to raise more capital.
        Its current price to book is very high.
        Last news release:

        RCG Completes PEA on Dufferin Gold Project, Announces the Acquisition of West Dufferin

        VANCOUVER, BC–(Marketwired – November 28, 2016) –

        NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

        Further to its news releases of October 17 and November 9, 2016, Resource Capital Gold Corp., (TSX VENTURE: RCG) (“RCG” or the “Company”) is pleased to announce the completion of a positive Preliminary Economic Assessment (“PEA”) on the Dufferin Gold Mine and the West Dufferin property being acquired by the Company (collectively “Dufferin”) located in Nova Scotia, Canada.

        PEA RESULTS

        The PEA was completed by MineTech International Ltd. of Halifax, Nova Scotia, and Global Mineral Resource Services of Vancouver, British Columbia. Economic results in the PEA show the production of 216,050 ounces of gold during a 10-year mine life, with a pre-tax IRR of 158% and a capital payback period of 1.3 years with a net present value of CAD$121,100,000 at a 5% discount rate. These economic numbers do not include any of the planned production from the stockpiled materials, which would be in addition to such amounts, and which the Company plans to commence in January, 2017.

          Dec 07, 2016 07:54 AM

          Well, it appears they’ll be generating revenues in Q1 2017, so they may not need to raise all that capital as they’ll have Gold and Silver being processed. I’m trying to get more of a handle of how much of it they can just pay for by growing organically.

          _____________________________________________________________________________

          RCG PROVIDES UPDATE OF ITS ACTIVITIES FOR THE START UP OF OPERATIONS UPDATE AT DUFFERIN GOLD MINE
          November 9, 2016

          “Resource Capital Gold Corp., TSXV:RCG is pleased to provide this update on its operations scheduled to recommence in January, 2017 at the Dufferin Gold Mine located in Nova Scotia, Canada. The Company is preparing for commencement of milling operations beginning with stockpiled materials followed by the full recommencement of full mining operations in early 2017.

          Gold bearing stockpile materials and tailings

          The Company has sampled stockpile and tailings materials on the surface at the Dufferin Mine and at the Tangier mine. An estimated 30,000 tonnes of mined stockpiled material and another 18,000 tonnes of tailings material are available for processing for gold recovery in the Dufferin Mill. The Company intends to process much of this tonnage while it simultaneously prepares for full mining operations at the Dufferin Mine during the first quarter of 2017. The Company expects to generate cash flow from processing these materials while it is preparing to mine.

          Material previously identified in Saddles 1, 2 and 4 of the mine

          In portions of Saddles 1, 2 and 4 in the Dufferin Mine, three of the 14 quartz “saddle reef” structures comprising the mine, the Company has identified approximately 15,000 tonnes of developed and partially-developed materials that were the subject of previous underground grade control sampling. The weighted average of the assays of these samples is 34.3 g/t gold. The Company took splits of the grade control samples and had them analyzed for gold content at ALS Laboratories in Ontario, Canada. The results of this re-assay check program support the previous grade control sampling grades. These portions of Saddles 1, 2 and 4 have been identified as the first blocks of material to be mined during the recommencement of mining operations….”

          http://www.rcgcorp.ca/news/2016/rcg-provides-update-of-its-activities-for-the-start-up-of-operations-update-at-dufferin-gold-mine

            Dec 07, 2016 07:09 AM

            Do you have any thoughts on what processing that “30,000 tonnes of mined stockpiled material and another 18,000 tonnes of tailings material” would generate in revenues based on what info is available? I haven’t dug in enough on their recovery rates or cash costs yet.

            In addition, I’m not sure how many ounces of new material they are planning to mine in the first quarter of next year, but they mentioned “15,000 tonnes of developed and partially-developed materials” as a starting point.

            I got the idea that they are just putting this mine back into production using all that 63,000 tonnes of material as a means of pushing off from shore, and that they’ll continue to drill and expand the resource with some of those revenues. Maybe they’ll only raise a portion of the money needed, or maybe they’ll cover the lion share of it through operations growth.

            I’ll need to do some more homework….

            Dec 07, 2016 07:11 AM

            from the Palisade Research article up above – seems encouraging:

            Post-tax NPV-5: C$89.2 million (vs. company’s market cap of just C$25.6 million)
            Post-tax IRR: 121%
            Payback: 1.3 years

            These numbers are based on $1,250 per ounce gold price, grades of 6.8 g/t Au at East Dufferin and 5.5 g/t Au at West Dufferin, 95% recovery rate, with cash costs of $617 per ounce.”

            Dec 07, 2016 07:17 AM

            Woops, my other comment about them having the permitted mill that can process 300 tonne-per-day capacity , and their capacity to produce 30,000 ounces per year went up above.

            – Anyway – It looks like a nice near-term production story, but I’ll keep digging….

            Dec 07, 2016 07:22 AM

            They probably need a NPV of 10 -12 versus 5 as well, but it’s par for the course in what you see in other PEAs.

    Dec 07, 2016 07:27 AM

    (IVN) (IVPAF) Ivanhoe’s Kamoa-Kakula: Dr. Copper Says Yes
    Dec. 7, 2016 – Sean Geddert – Editorial

    http://seekingalpha.com/article/4028864-ivanhoes-kamoa-kakula-dr-copper-says-yes?auth_param=c9otd:1c4gg12:44636ea6447fbbce66e99fca171eb776&uprof=45#alt1

    Dec 07, 2016 07:29 AM

    For how long and how many points lower on the S&P has Dave Stockman been making that call.

    Dave Stockmam must go
    John Williams must go

    Keep draining the swamp

      Dec 07, 2016 07:34 AM

      Not sure . If you want to know why, ….the article is at FSN

        Dec 07, 2016 07:36 AM

        As for John….his numbers are a lot closer than the fake government numbers

          Dec 07, 2016 07:38 AM

          The swamp in DC ..does need to be drained, …

          Dec 07, 2016 07:36 AM

          Good for stocks?….
          Job market rolling over: rate of hiring declines at fastest pace since 2013 .Zero hedge

    Dec 07, 2016 07:51 AM

    I took profits twice today on XOP but is not spiking up anymore. Tough to make 20 to 30 cents. Oil still under profit taking pressure but should come back up.

    Dec 07, 2016 07:53 AM

    Ex my friend, Uranium bear might be over and today I bought some Urre, a company involved in Uranium an Lithium projects. Todays news seems good to the shareprice. Going up in good volume. Any opinium about Urre?

    http://www.uraniumresources.com/investors/news-releases/2016/12/07/uranium-resources-to-present-metals-energy-business-including-new-lithium-expansion-at-investment-conference-in-los-angeles

      Dec 07, 2016 07:00 AM

      Yes, most of the Uranium stocks are up very nicely today. There’ve been a few people celebrating over at CEO that the Uranium Bear is over. While I’m happy to see the green on the screen, I’m not breaking out the champagne quite yet 🙂

      Yes, I’ve traded URRE since 2010 and yes, I hold a position in it currently. They are a solid company that has been in the Uranium space for a long time, and they have a pipeline of projects that are permitted and awaiting higher spot prices.

      I was very excited about them acquiring the insitu mining operation in Turkey by acquiring Anatolia Energy, but was a bit thrown off when they announced the new Lithium projects honestly. I’d rather see them skip jumping on the LI bandwagon and stay focused on Uranium, despite how low the prices have been.

        Dec 07, 2016 07:01 AM

        Regardless, many of the charts are showing various Uranium miners poised for a continuation of their relief rally (although Cameco is at the 200 day MA resistance).

        Dec 07, 2016 07:14 AM

        Yes, I dont think its that easy to get rid of the bear😉 Its a bottomingprocess and You better be prepared for the bull cause its gonna be one to remember. Im with you about the Lithium projects I would have been more excited if they chose the uraniumsector holehearted instead.

    Dec 07, 2016 07:27 AM

    Well, my concern is Turkey as a risky place to have an ongoing project. That region is not 100% riskfree.

      Dec 07, 2016 07:02 AM

      Agreed. The governtment coup earlier in the year had people take pause, but Anatolia energy has good ties with the government there and they are pro Nuclear energy, so the project should be supported without too much push-back.

      _____________________________________________________________________

      “A major attraction of Turkey is that it offers a single regulatory regime which is supportive of nuclear energy. The country is currently in the first phase of constructing four light water nuclear reactors with the goal of supplying 20% of the nation’s electricity through nuclear power generation by 2030. Currently, more than two-thirds of Turkey’s energy is generated from imported oil and gas.

      The project area covers over 18,000ha across 9 licences and enjoys year-round accessibility via sealed roads and a number of unsealed local tracks. Sparsely populated, but with access to major infrastructure such as water and power, the area is gently undulating.”

      http://www.uraniumresources.com/projects/turkey

        Dec 07, 2016 07:10 AM

        Thanks for info👍

    Dec 07, 2016 07:07 AM

    The monster rally has started. S&P should reach 2300 by the end of the month.

      Dec 07, 2016 07:35 AM

      +1
      The Trump cult will find a way to rationalize every such peculiarity. 😉

      GH
      Dec 07, 2016 07:22 PM

      !”#$@”$%

      Is that Trump, or Chump? I wonder if he’ll like having his name written in feces as much as he likes it in gold.

    Dec 07, 2016 07:32 AM

    Jamie Dimon isn’t your enemy.

    Your enemy are the gold pumpers and hawksters that keep coming up with bs narratives and outlandish price calls to keep the gold bugs drinking the cool aid.

    And you don’t have to look far to find them, they are all around you.

      Dec 07, 2016 07:59 PM

      Central banks are your enemy………..and anyone associate with the fractional lending

    Dec 07, 2016 07:43 AM

    Gold is dropping like a rock.

    If you haven’t put a fork in it by now it is well done!

    Dec 07, 2016 07:44 AM

    $gold’s daily full stochastics have been oversold for over 5 weeks. I defy anyone to find anytime in the last 50 years this has happened. The last record was back in November 2015, and price still went lower after they came out of oversold territory.

    Dec 07, 2016 07:21 PM

    Did anyone catch the Auryn webinar???If so,anything of interest that was mentioned???