Exclusive Insights on the Gold Market – Mon 23 Oct, 2017

Drivers for the metals into 2018

Brien Lundin, our host down at the New Orleans Investment Conference starting on Wednesday, joins me to look ahead for the metals sector. We see the Fed meeting in December as short term headwinds but there are some potential drivers into next year.

As mentioned please let me know what companies you would like me to meet with at the conference. Click here to view the exhibiting companies.

Click download link to listen on this device: Download Show


Featuring:
Brien LundinCory Fleck
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Comments:
  1. On October 23, 2017 at 11:34 am,
    Silverdollar says:

    Cory:
    Do yourself a favor while in New Orleans. Take the ferry across the river to Algiers. Walk a long block down the hill. Terrific little family restaurant with good food and very good prices.

    • On October 23, 2017 at 7:00 pm,
      Cory says:

      Thanks Silverdollar! If I have a free night I will keep this in mind and check it out!

  2. On October 23, 2017 at 12:20 pm,
    Marshall says:

    Cory, in New Orleans, could you interview Ivan Bebeck of Auryn and tactfully ask about the lack of blockbuster results from their BC and Nunuvut properties? Thanks

    • On October 23, 2017 at 12:35 pm,
      Wolfster says:

      There have been no results from their BC property yet. They did increase drilling from 12,000M to 15,000M at homestake but results won’t be out til November.

    • On October 23, 2017 at 7:01 pm,
      Cory says:

      You bet Marshall! An interview with Ivan will be going live at the market open tomorrow 🙂

  3. On October 23, 2017 at 1:45 pm,
    Excelsior says:

    Cory – While you are at the New Orleans investment summit could you also encourage everyone in the audience to add to positions in their 3 favorite miners. 🙂

    * If everyone added on the same few days then we’d turn the corner on this corrective move and start the nex leg higher. (lol)

  4. On October 23, 2017 at 1:54 pm,
    Excelsior says:

    K92 Announces Positive Final Results from Treating 2,050 Tonne Bulk Sample from the Kora Vein

    @marketwired on October 23, 2017

    https://ceo.ca/@marketwired/k92-announces-positive-final-results-from-treating

  5. On October 23, 2017 at 2:42 pm,
    Wolfster says:

    Hey Ex.There was an investor presentation last week for abitibi royalties.From someone who was there,they walked away from it saying it’s dead money for the foreseeable future.Basically a waiting game for the next year or two as the reserves get firmed up…..did mention that Ian Ball felt there was a potential for 10M reserves between odyssey and east if all goes well if I understood properly but that could require another 3-5 years of drilling…Ian was told point blank that its dead money when compared to the novo’ s of the world and he really had no good comeback…doing their put/call writing for income and no plans of selling agnico and yamana shares for a bigger royalties deal

    • On October 23, 2017 at 3:10 pm,
      Excelsior says:

      Hi Wolfster. I view royalty companies more like the streamers where they are the stable money that has gradual increases as the underlying metal prices rise, and I still don’t believe the market really understands what Abitibi is sitting on in conjunction with Yamana and Agnico Eagle.

      While the Odyssey royalty is the biggest value driver of RZZ, they still have other stakes on other properties that interest me as well. For example, I’ve talked to the CEO of Frontline Gold in the past and felt that transaction on the Red Lake properties was a win win.

      Again, my stake is in GZZ Golden Valley Mines because I think Glenn Mullan is very well connected and is good at putting together partnerships. GZZ owns half of RZZ so they have exposure to everything Abitibi has in the hopper, and then many other JVs & strategic holdings of interest:

      ________________________________________________________________________

      *** Near-Term Catalysts

      -GZZ and MZZ new option agreement announced (MZZ recently announced $1.2 million financing)

      -GZZ owns 5,605,246 shares of Abitibi Royalties (TSXV:RZZ)
      -RZZ owns royalties on parts of the Canadian MalarticMine, including a 3% NSR on Odyssey North
      -Inferred resource at Odyssey, subject to the RZZ NSR -1,039,941 ounces @ 2.16 gpt

      > GZZ owns 4 million shares of SiriosResources Inc. (TSXV:SOI)
      -2.5 –4% NSR on the CheechooProspect

      >Active Joint Ventures
      -Lac Barry (Bonterra), Centremaque (Alexandria Minerals) and Island 27 (Battery Minerals)

      > Share ownerships
      -49.6% of RZZ (5,605,246 shares)
      -44.5% of MZZ (8,163,634shares)
      -3.2% of SOI
      -20.7% of VZZ.H (4,170,910 shares)

      http://www.goldenvalleymines.com/news/2017/

      • On October 23, 2017 at 3:14 pm,
        Excelsior says:

        Like I’ve stated since 2016, between the 2 GZZ should be trading at a large premium to RZZ and neither is properly valued at this point in time. That is true of many royalty companies and JR miners though and should be expected.

        Look at EMX Royalties right now….. Their valuation is a joke considering what all they have in the pipeline and some of their royalties are going to be paying out big-time next year.

        That is just the market we find ourselves in at this point, but when the worm turns…..

  6. On October 23, 2017 at 3:29 pm,
    Wolfster says:

    I still hold both so don’t get me wrong…….gzz deal with Alexandria looks interesting as the drilling moves west towards the centremaque property and rzz does hold another royalty near pure gold property that is looking to go into production…….the problem is those are no further along either….gzz is a real conundrum….getting to a level that makes me doubt my valuation calculations

    • On October 23, 2017 at 3:39 pm,
      Excelsior says:

      These royalty companies are challenging to value until the economic studies are done for the underlying properties where they hold the NSR. It is hard for investors to have an idea of the true value until they know how many ounces per year will be produced, for how many years, and at what projected metals prices.

      Yes the royalties near the Pure Gold properties were the ones I was discussing that they acquired from Frontline Gold.

      I’m pretty excited about the work Bonterra is doing lately as well, and Sirios could still end up growing that Cheechoo project into a real winner.

      Honestly, I don’t spend much time looking at GZZ / RZZ because I just consider it a profit dumpster (term coined by Matthew).

      When I have a winning trade I typically redeploy into other undervalued miners, but I usually peel off a little bit of the winnings and stash it in royalty companies or Prospect Generators for some more measured gains and just dollar cost average into those companies. That is how GZZ is for me, just a storage tank that I’m filling up for the long game. Ever Upward!

      • On October 23, 2017 at 3:51 pm,
        Excelsior says:

        (MLN) Marlin Gold was my best profit dumpster in 2017 though. Steady climber, but they are a hybrid company with 1/2 producing/development assets and 1/2 royalties and streaming deals

      • On October 23, 2017 at 9:12 pm,
        Excelsior says:

        speaking of Frontline Gold…… news just hit the wires where they just picked up a Lithium project….

        Frontline Acquires Jubilee Lake Lithium Prospect
        @thenewswire on October 23, 2017

        https://ceo.ca/@thenewswire/frontline-acquires-jubilee-lake-lithium-prospect

    • On October 23, 2017 at 3:43 pm,
      Excelsior says:

      One other consideration is that last comment you made:

      “no plans of selling agnico and yamana shares for a bigger royalties deal”

      That may prove quite prescient as I believe when the PM bull gets going full steam ahead that both AEM and AUY will appreciate nicely (adding even more underlying value to RZZ and thus GZZ).

      Just a thought….

      • On October 23, 2017 at 4:02 pm,
        Wolfster says:

        I hear you…..I don’t follow price daily but keep informed on the story …..do more of a weekly check and was surprised to see gzz all the way down to .27..didn’t expect that with rzz still in the 9 range..cheers

        • On October 23, 2017 at 4:05 pm,
          Excelsior says:

          Well, at least Ian just piled into 200 more shares….. (lol)

          2017-10-11 2017-10-12 $RZZ Abitibi Royalties Inc.
          Ball, Ian 4 – Director of Issuer, – Senior Officer of Issuer
          – Acquisition or disposition in the public market +200 $9.0700

        • On October 23, 2017 at 4:12 pm,
          Excelsior says:

          to your point GZZ is undervalued . I may dump some profits in there again soon (if I ever get any profits again 🙂 )

  7. On October 23, 2017 at 7:47 pm,
    Excelsior says:

    Eagle Plains Proposes Spin-Out of Saskatchewan Gold Assets through Plan of Arrangement
    @fscwire on October 23, 2017

    https://ceo.ca/@fscwire/eagle-plains-proposes-spin-out-of-saskatchewan-gold

  8. On October 23, 2017 at 8:20 pm,
    Excelsior says:

    ‘Real’ Gold Bull Market Is Coming, It Just Needs This First – Pierre Lassonde
    Anna Golubova – Monday October 23, 2017

    ‘Real’ Gold Bull Market Is Coming, It Just Needs This First – Pierre Lassonde
    (Kitco News) – Gold prices will only go up, rising as high as $1,400 next year, but the “real” bull market won’t get going until it sees an actual pickup in inflation, said mining magnate Pierre Lassonde.

    “For gold to get into the next real bull market we need signs of inflation. So far we haven’t seen them,” the chairman of Franco-Nevada told German newspaper Finanz and Wirtschaft.”

    “The Federal Reserve and other central banks have piled up huge reserves. But there is no inflation because the money is sitting within the banks and they are not lending it. Therefore, you don’t get a multiplier effect.”

    http://www.kitco.com/news/2017-10-23/-Real-Gold-Bull-Market-Is-Coming-It-Just-Needs-This-First-Pierre-Lassonde.html

    • On October 23, 2017 at 8:39 pm,
      Ozibatla says:

      It begs the question then Excelsior: When will inflation take effect and at what rate?

      • On October 23, 2017 at 9:03 pm,
        Excelsior says:

        Pierre goes on in that piece to mention that the rebuilding after the hurricanes this year and the recovery in Europe may get things going. We’ll see….

        If the inverse Head & Shoulders pattern in the US dollar doesn’t cause it to blast higher, and if the greenback flounders around in the 94-97 zone and then turns back down breaking 91, then it would spike commodities and inflation.

        Personally, I’d prefer to never see inflation because it keeps my costs of goods down, and since wages aren’t growing, I’m fine with flat inflation. However, the Central Bankers crave inflation to keep their system growing, but I doubt they’ll be able to contain it once it rears it’s head.

        If the money started circulating again through new small business loans and there was true growth, then inflation would start ramping up.

        How much? Who knows? Keeping it at 2% is unlikely though, and it would likely ratchet past to 3, 4, 5%

        It’s all speculation at this point from the FED and ECB on down to economists to the plebs…. Nobody knows.

        Personally, I’m just looking at which miners would still be viable at $1400 Gold and $22+ Silver. Whether it moves up or down $20 here or there is irrelevant for the most part.

        Moves of $100+ are more interesting because at $1100-$1200 gold there are some companies that will struggle and at $1400 or even $1500 gold there are companies that will do well or get re-rated higher.

        • On October 23, 2017 at 9:08 pm,
          Excelsior says:

          As so many have discussed the last few years, there is plenty of inflation in daily life for food, services, concert/movie tickets, education costs, insurance costs, etc… and the stock market has been juiced beyond anything we’ve ever seen.

          From that standpoint we’ve seen plenty of inflation already….just not how they measure it.

  9. On October 24, 2017 at 10:37 am,
    reo says:

    Pierre have you bought anything lately….signs of inflation are everywhere food energy gas everything is going up in price…yet gold has ben steadily going donw since 2011….What kind of stuff are you smoking?? Signs of inflation neede for gold to go up….what a typical bullshit call from a goldbug…..that is all gold bugs gold pushers do….is continually make up reasons why gold should be higher and gold stocks should be higher and then they make up excuses as is never happens