Weekend Show – Sat 5 May, 2018

Hour 1 – Investing and Markets – A Look Into Resource Stocks And Fed Policy

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This week had a number of news events that could have driven markets but the overall trend takeaway was the continue rise in the USD. The Fed reemphasized its plan to raise rates at least 2 more times this year and changed some wording to address inflation now just short of 2%. We also saw a jobs number on Friday that was weak on the headline number but prior months were revised up to make the net impact a wash. Overall the US markets continued in a choppy downward fashion and the metals sector remains generally ignored.

In the first hour we focus a lot on individual stocks. Also please review the company interviews that were posted throughout the week. The links can be found below.

Please keep in touch by emailing me at Fleck@kereprot.com. I try to follow up on all the emails you send me and touch base with all the companies that are recommended. Have a great weekend!

  • Segment 1: We kick of the first hour with Rick Rule and his thoughts on why this is a great time for investors in the resource sector.
  • Segment 2: Doc is with us to breakdown the charts of 3 metals stocks,
  • Eldorado Gold (EGO:NYSE & TSX:ELD), Harmony Gold (NYSE:HMY), and Skeena Resources (TSX.V:SKE).
  • Segment 3: John Kaiser continues our focus on specific stocks with comments on Revival Gold, Skeena Resources, and Osisko Metals.
  • Segment 4: We wrap up the first hour with Chris Temple and a historical comparison between prior Fed Chairman Paul Volker and the current Chairman Jerome Powell.

Exclusive Company Interviews and Updates


Segment 1

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Segment 2

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Segment 3

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Segment 4

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Featuring:
Rick RuleRichard PostmaJohn KaiserChris Temple

Comments:
  1. On May 5, 2018 at 3:38 am,
    Markedtofuture says:

    UAE Drops VAT on Gold

    The UAE government came under tremendous pressure by the dealers that the VAT was killing their business. The government has responded dropping the VAT (Sales Tax) on gold, diamonds, and precious metals for investors. Taxing such products is, in reality, taxing money the same as if it bought bonds or stocks. Not everyone buys stocks just as not everyone buys gold. Taxing gold and not stocks is a form of investment bias.

    https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/uae-drops-vat-on-gold/

  2. On May 5, 2018 at 3:38 am,
    Skeeta says:

    Thanks for the show as always fella’s.
    Much appreciated.
    Cheers.

    • On May 5, 2018 at 6:03 am,
      Excelsior says:

      Agreed. Looking forward to a jolly good weekend show. Ever Upward!

    • On May 6, 2018 at 1:41 am,
      Anders from Copenhagen says:

      Great show! Best wishes to your little family, Cory 😎

      • On May 6, 2018 at 8:35 pm,
        C Fleck says:

        Thanks so much guys!! It’s been amazing so far with little Gigi 🙂

  3. On May 5, 2018 at 6:04 am,
    Excelsior says:

    Platinum Price Cycles Predict Big Upside Move

    Chris Vermeulen – May 3, 2018 – The Technical Traders

    http://www.321gold.com/editorials/vermeulen/vermeulen050318.html

    • On May 5, 2018 at 6:06 am,
      Excelsior says:

      Gold Hit by USDX Squeeze

      Adam Hamilton – May 04, 2018

      “Gold was enjoying a solid spring rally until a couple weeks ago, nearing major upside breakouts. But its nice advance has crumbled since, really weighing on sentiment. Gold fell victim to a rare major short squeeze in US Dollar Index futures. The surging USDX motivated gold-futures speculators to flee rather aggressively. But this will likely prove a short-lived anomaly, after which gold’s assault on highs will recommence.”

      http://www.321gold.com/editorials/hamilton/hamilton050418.html

      • On May 5, 2018 at 9:54 am,
        Matthew says:

        The dollar hasn’t been so overbought since 2016 and is at resistance that should stop it for at least the very short term…
        http://schrts.co/5wRsT7

        • On May 5, 2018 at 10:18 am,
          Excelsior says:

          Good chart Matthew. Yes the 233 day EMA crossed down through the 600 day EMA, and the 600 day EMA also looks like a significant overhead resistance zone.

          It’s definitely over bought on the RSI, slow & full stochastics, and the ADX so it may not have much left in this rally before reversing some, but there may be enough juice for one last pop before topping out.

    • On May 6, 2018 at 2:31 am,
      Excelsior says:

      Move to Platinum sustains Sibanye-Stillwater

      04 MAY 2018 – Allan Seccome

      “The first-quarter performance of Sibanye-Stillwater’s platinum group metal (PGM) assets in SA and the US underscored the strategic intent of the company to diversify away from its South African gold mines, which had a very difficult start to the year.”

      “With the PGM operations providing 76% of the ebitda [earnings before interest, tax, depreciation and amortisation] and about 100% of the cash flow, the diversification strategy is very much showing its benefits,” RBC analyst Tyler Broda said.

      https://www.businesslive.co.za/bd/companies/mining/2018-05-04-move-to-platinum-sustains-sibanye-stillwater/

      • On May 6, 2018 at 2:33 am,
        Excelsior says:

        SOUTH AFRICAN PLATINUM INDUSTRY LEAVES MINERS LOOKING FOR SAFER JURISDICTIONS: GROUP TEN METALS (TSX-V: PGE) STAKES PGE CLAIMS IN MONTANA

        May 1, 2018 | Posted by: Nicholas LePan

        http://www.miningfeeds.com/2018/05/01/south-african-platinum-industry-leaves-miners-looking-for-safer-mining-jurisdictions-group-ten-metals-tsx-v-pge-stakes-pge-claims-in-montana

        • On May 6, 2018 at 2:39 am,
          Excelsior says:

          (PGE) Group Ten Metals is a company with the PGM goods next to Nickel Creek (old Wellgreen Platinum) in the Yukon and adjacent to Stillwaters PGM property in Montana. They also have a 3rd Gold property on trend with First Mining Finance and Treasury Metals.
          ______________________________________________________________________

          Exposure to Key High-Demand Commodities – Group Ten Metals (PGE) (PGEZF)

          Cambridge House – Feb 16, 2018

          https://www.youtube.com/watch?v=1lmaLKypGbU

          • On May 6, 2018 at 2:39 am,
            Excelsior says:

            Group Ten (PGE) has formed a consortium with Metallic Minersal (MMG) since Greg Johnson is at the helm of both companies and they share a number of personnel and technical expertise between the 2 companies. I like them both.

            _____________________________________________________________

            Metallic Minerals & Group Ten Metals – PDAC 2018

            AXINO GmbH – Mar 12, 2018

            “Greg Johnson was giving AXINO a summary about both companies, of what has been achieved, and about the next exploration steps.”

            https://www.youtube.com/watch?v=mc_L3-pvCIE

          • On May 6, 2018 at 2:43 am,
            Excelsior says:

            (PDL) (PALDF) North American Palladium Announces Strong Operational Performance with its First Quarter 2018 Financial Results

            by @nasdaq on May 3, 2018

            https://ceo.ca/@nasdaq/north-american-palladium-announces-strong-operational

          • On May 6, 2018 at 2:44 am,
            Excelsior says:

            (PTM) (PLG) Platinum Group Metals Announces Public Offering of Units

            by @nasdaq on May 3, 2018

            https://ceo.ca/@nasdaq/platinum-group-metals-announces-public-offering-of

          • On May 6, 2018 at 2:49 am,
            Excelsior says:

            PolyMet Mining is a publicly traded company with executive offices in St. Paul and operational headquarters near the project site in Hoyt Lakes. The NorthMet Project will produce these essential metals:

            • Copper
            • Nickel
            • Gold
            • Cobalt
            • Platinum
            • Palladium

            http://polymetmining.com/wp-content/uploads/2017/05/Project-Brief.pdf

      • On May 6, 2018 at 2:40 am,
        Excelsior says:

        The Problem With Turkeys: A Curious Case For The Platinum Group

        by @Keecher on April 30, 2018

        “As economic tides continue to rise around the world and drag people into the middle consumer class there will continue to be a demand for personal vehicles; for the medium term at least, the majority of those will be hydrocarbons (and PGMs).”

        “Coupled with instability in the world’s major platinum producing regions and intense pressure on PGM stockpiles, I’d be willing to bet that platinum starts to move in the same direction as its more en vogue cousins.”

        “The most difficult part about PGMs is finding exposure to good assets and good teams outside of South Africa. In the coming weeks we’ll be exploring opportunities in the space and looking at leaders best positioned to leverage the current climate.”

        https://ceo.ca/@keecher/title

  4. On May 5, 2018 at 6:07 am,
    bonzo barzini says:

    Doc, did you buy any DRGDF when it crashed to 7.10? NEM or AEM or GG or ABX ought to buy Detour down here and boost their production by over 600K oz.
    Are you going to the KY Derby or the NRA convention in Dallas? Which horse do you like?
    I’m for Mendelssohn, winner of the Emirates Derby in Dubai.

    • On May 5, 2018 at 8:26 pm,
      bonzo barzini says:

      My horse finished last. Good thing I don’t have a bookie…

    • On May 6, 2018 at 12:57 pm,
      RICHARD/DOC says:

      I haven’t purchased any DRGDF yet. I’ll look at it sometime this week.

  5. On May 5, 2018 at 6:08 am,
    Excelsior says:

    Gold Explorers: A Major Rally Begins
    Morris Hubbartt – May 4, 2018
    Super Force Precious Metals #Video #TechnicalAnalysis

    (double click on the several blue links to view the TA Videos)

    http://www.321gold.com/editorials/sfs/hubbartt050418.html

  6. On May 5, 2018 at 6:33 am,
    Excelsior says:

    One Trader Ponders The Outlook For Gold
    therealheisenberg / 14 hours ago

    By Kevin Muir of “The Macro Tourist” fame

    https://heisenbergreport.com/2018/05/04/one-trader-ponders-the-outlook-for-gold/

    • On May 5, 2018 at 6:50 am,
      Silverdollar says:
      • On May 5, 2018 at 11:26 am,
        Excelsior says:

        Silverdollar – Good post from Jesse on the FANG versus BANG stock indexes….

        “This latter group I call BANG (Barrick Gold, Agnico Eagle, Nemont Mining and Goldcorp) and I like the acronym not just because of the allusion to and juxtaposition with FANG but also due to the fact that rising gold prices could make for explosive gains in these stocks if their valuations begin to normalize at all.”

  7. On May 5, 2018 at 8:36 am,
    Wolfster says:

    Hey Ex. Was reading talk about zinc you and others were having and mention of glencore….any time glencore is involved in anything watch out. Just remember how they scoped up Donner Metals assets for cheap with the onerous payment schedule and management fee structures or what have you…donner found the goods and just when it looked like they were going to be a producing mine in swooped glencore to take it all…even brings back memories of grandich who was discussed recently as well

    • On May 5, 2018 at 9:46 am,
      Excelsior says:

      Yes we were discussing how (PLM) (POM) Polymet was getting more entrenched with Glencore, and that I was hoping they would purchase Polymet rather than making them their puppet like Trevali, but there is no doubt Glencore can push its weight around and they make take it or leave it deals, and usually come out on top. I believe in the past I remembered Americas Silver mentioning Glencore can be a tough negotiator on Zinc Silver Lead concentrate deals.

      • On May 5, 2018 at 9:54 am,
        Excelsior says:

        Trevali has really done well overall the last few years, and they definitely capitalized on the old Glencore mines and knowledge base. Got to give them credit on executing their plan into the rising Zinc boom.

        ________________________________________________________________

        Zinc darling Trevali poised for further organic, M&A growth as prices climb

        22nd September 2017 – By: Henry Lazenby

        “Following the recent $400-million acquisition of a portfolio of zinc assets from mining major Glencore, Vancouver-headquartered Trevali Mining has become the go-to investment vehicle for investors keen to get in on rising zinc prices.”

        ** ‘SUPER MAJOR’

        “Trevali closed the Glencore asset acquisition on August 31, adding an 80% interest in the Rosh Pinah mine, in Namibia; a 90% interest in the Perkoa mine, in Burkina Faso; an effective 39% interest in the Gergarub project, in Namibia; an option to acquire a 100% interest in the Heath Steele property, in Canada; and certain related exploration properties and assets to its existing portfolio, which included the Santander mine, in Peru, and the Caribou mine, in the Bathurst Mining Camp (BMC) of New Brunswick.”

        “Following the African acquisitions, Glencore became one of Trevali’s most significant partners, holding a 25.6% stake in Trevali (up from 4.3% held previously). What is not well known, explained Cruise, is that Trevali also gained access to the full suite of Glencore services, expertise and proprietary technologies, which it will use to leverage further efficiencies.”

        “This allows us to run Trevali as a ‘super major’, while in fact we are just a small zinc company,” he stated.

        http://www.miningweekly.com/article/zinc-darling-trevali-poised-for-further-organic-ma-growth-as-prices-climb-2017-09-22?utm_source=dlvr.it&utm_medium=twitter

        • On May 5, 2018 at 10:01 am,
          Excelsior says:

          It would be nice to see more Majors partner up with Jr companies and provide this kind of financial & technical expertise support to run a suite of mines that is too small for their interest, but a series of them run by a Jr, like a subsidiary, makes a lot of sense.

          Most of the Majors and Larger Mid-tiers are teaming up with exploration and development stage companies and forming collectives or groups. Osisko comes to mind for example, or Sandstorm Gold’s more recent equity stakes.

          Then there is the trend of companies like First Mining Finance or Equinox Gold to just buy up a bunch of Jrs to combine them into a larger Jr bordering on Mid-tier status with the number of ounces in the ground and number of mines/assets.

          Then there are emerging players like the Belcarra group that are solid operators.

          https://www.belcarragroup.com/#our-portfolio

          • On May 5, 2018 at 11:14 am,
            Excelsior says:

            (CZX) Canada Zinc Metals Corp. to Change Name to (ZNX) ZincX Resources Corp.

            “…will commence trading on the TSX Venture Exchange under the new name and the new stock symbol (ZNX) beginning Monday, May 7, 2018.”

            “In addition to the Akie Project, the Company owns 100% of eight of eleven large, contiguous property blocks that comprise the Kechika Regional Project including the advanced Mt. Alcock prospect. The Kechika Regional Project also includes the Pie, Yuen and Cirque East properties within which the Company maintains a significant 49% interest with partners Teck Resources Limited (TSX: TECK.B) and Korea Zinc Co. Ltd. ”

            https://ceo.ca/@fscwire/canada-zinc-metals-corp-to-change-name-to-zincx-resources

          • On May 5, 2018 at 12:02 pm,
            OOTB Jerry says:

            Well it is about time……..they started to form collectives…….I agree with Keith’s comments several years ago, when he mentioned this idea, of “cooperatives”, not collusion, for that would be illegal 🙂 ……

          • On May 5, 2018 at 12:05 pm,
            OOTB Jerry says:

            Break the back of CME, Crimex, JPM……….

          • On May 5, 2018 at 2:50 pm,
            Excelsior says:

            There are just too many companies and borderline profitable projects out there, that would be more profitable with a larger entity taking away the cash burden and providing the technical expertise, but letting the JR company provide the exploration/development team or simply augment the initial engineering and production team.

            There just may be more and more larger companies created out of grouping 3-6 smaller companies together under one umbrella and then growing further from there.

      • On May 6, 2018 at 5:00 am,
        Excelsior says:

        For clarity Polymet is not a Zinc company but they are in cahoots with Glencore on their Nickel/Copper/PGM/Precious Metals deposit.

    • On May 5, 2018 at 11:09 am,
      Excelsior says:

      (TK) (TKRFF) Tinka Resources Closes C$16.2M Of Financings; Finds More Mineralization At West Ayawilca

      by @CriticalInvestor on May 5, 2018 #ZInc #Silver #Tin #Peru

      https://ceo.ca/@criticalinvestor/tinka-resources-closes-c162m-of-financings-findsmore-mineralization-at-west-ayawilca

      • On May 6, 2018 at 6:44 am,
        Wolfster says:

        Well at least Glencore isn’t involved here although management seems to have dropped the ball…..financing when they got in the .80’s or even .70’s would have been prudent

        • On May 6, 2018 at 1:24 pm,
          Excelsior says:

          True – at least Glencore isn’t sucking the life out of this one, but as you mentioned, they turned down a financing at a higher level to do one at a lower level that was more dilutive, so many got pissed over the last month or so. Still their Zinc resource is a great new discovery in Peru, and they have the Silver and Tin deposits as upside kickers.

  8. On May 5, 2018 at 9:44 am,
    Markedtofuture says:

    Trade Dan Larimer(EOS) for Charlie Lee(LTC)!! – Bix Weir

    https://www.youtube.com/watch?v=rYa_Sa5gQoE

    • On May 5, 2018 at 2:59 pm,
      Excelsior says:

      May the Fourth be with Crypto Wars — Issue No. 23

      by @BTO on May 4, 2018

      https://ceo.ca/@bto/may-the-fourth-be-with-crypto-wars-issue-no-23

      • On May 5, 2018 at 3:02 pm,
        Excelsior says:

        Goldman Sachs to Open a Bitcoin Trading Operation

        By Nathaniel Popper – May 2, 2018

        https://www.nytimes.com/2018/05/02/technology/bitcoin-goldman-sachs.html

        • On May 5, 2018 at 3:06 pm,
          Excelsior says:

          > Bacoin has arrived:

          “As the gold standard of bacon for the past 100 years or so, Oscar Mayer is the only leading authority to help lead bacon into the future of tomorrow – by creating a currency today.”

          “So, we’re releasing a limited number of Oscar Mayer Bacoins, all redeemable for packs of real Oscar Mayer Bacon. Even better, you help control the value of each Bacoin! If that sounds pretty tasty to you, start mining today and see if you’re a lucky winner.”

          https://kraftheinz.promo.eprize.com/bacoin/?affiliate_id=businesswire

          • On May 5, 2018 at 3:15 pm,
            Dick Tracy says:

            How could you possibly talk about Oscar Meyer without blowing or mentioning a Weanie Whistle, one thing about the male gender is that they refuse to mature. LOL! DT

          • On May 5, 2018 at 5:49 pm,
            Excelsior says:

            I’m still trying to get over a crypto backed by something tangible = bacon !

          • On May 5, 2018 at 7:56 pm,
            Excelsior says:

            This also surely marks the ludicrous level of crypto interest going mainstream, and here I thought the Long Island Iced Tea crypto venture was the silliest thing ever….

          • On May 6, 2018 at 6:48 am,
            Wolfster says:

            Poo poo crypto’s all you want,they are definitely a way to make money…..ethereum flaws supposedly covered by EOS which makes it the next wave……I’m so tech stupid I couldn’t figure out how to setup an account to buy EOS when it was still in single digits

          • On May 6, 2018 at 1:20 pm,
            Excelsior says:

            I never said cryptos weren’t a way to make money, nor did I poopoo them. In fact the article above showing Goldman Sachs is opening up a crypto trading desk was far from poopoo the trend.

            They definitely are a way to make money and I hold 3 different stocks with crypto and blockchain exposure, but that doesn’t make Bacoin or CryptoKitties or most of the altcoins any less ridiculous.

          • On May 6, 2018 at 10:42 pm,
            Excelsior says:

            Cryptos Under Pressure: Ethereum Facing Key Test of Support
            By Goldfinger on Sunday, May 6, 2018

            http://321ethereum.com/cryptos-under-pressure-ethereum-facing-key-test-of-support/

      • On May 6, 2018 at 2:33 pm,
        Excelsior says:

        Is Buying Crypto Assets “Investing”

        AVC – May 6, 2018

        Warren Buffet says:

        “If you buy something like a farm, an apartment house, or an interest in a business… You can do that on a private basis… And it’s a perfectly satisfactory investment. You look at the investment itself to deliver the return to you. Now, if you buy something like bitcoin or some cryptocurrency, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more.”

        When you buy cryptocurrency, Buffett continues, “You aren’t investing when you do that. You’re speculating. There’s nothing wrong with it. If you wanna gamble somebody else will come along and pay more money tomorrow, that’s one kind of game. That is not investing.”

        https://avc.com/2018/05/is-buying-crypto-assets-investing/

  9. On May 5, 2018 at 9:57 am,
    Matthew says:

    SILJ priced in GDX did well last week and the picture remains bullish. This is a very good sign for the whole sector…
    http://schrts.co/EkzWyJ

  10. On May 5, 2018 at 10:13 am,
    Excelsior says:

    VW doubles its Electric Vehicle Battery contracts to $48 billion

    Fred Lambert – May. 4th 2018

    https://electrek.co/2018/05/04/vw-doubles-electric-vehicle-battery-contracts-billion/

  11. On May 5, 2018 at 10:14 am,
    Matthew says:

    Silver looks a lot better than gold (SLV:GLD)…
    http://schrts.co/PWS1AR

  12. On May 5, 2018 at 11:49 am,
    Silverdollar says:

    This was available 5 days ago but in case all didn’t see it, it fit’s well with Matthew’s thoughts on silver: http://palisaderadio.com/louis-james-you-can-call-me-a-silver-bug-this-year/

  13. On May 5, 2018 at 12:21 pm,
    Silverdollar says:
  14. On May 5, 2018 at 12:25 pm,
    OOTB Jerry says:
  15. On May 5, 2018 at 6:21 pm,
    Dan says:

    The technical review of those 3 stocks is my favorite segment of any weekend show ever. TY.

    • On May 7, 2018 at 12:37 pm,
      Cory says:

      Good to hear Dan. It helps me when you and others shares your thoughts on the segments you like best. Doc and I will keep on reading the charts at the end of the week. Sometime it will be a daily, other times I will include it on the weekend show.

  16. On May 6, 2018 at 9:49 am,
    George says:

    Is oil signaling a new Middle East war?

    • On May 6, 2018 at 10:52 am,
      Matthew says:

      I don’t know, but it is at very important long term resistance when priced in real money.
      $WTIC:$GOLD monthly:
      http://schrts.co/7ngFuy

    • On May 6, 2018 at 11:01 am,
      Matthew says:

      Oil also looks very strong versus the dollar and looks like it can reach 80 before pausing for awhile…
      http://schrts.co/hggBsf

  17. On May 6, 2018 at 11:05 am,
    Matthew says:

    Looks like a bounce is coming for the 30 year UST bond versus gold…
    http://schrts.co/ipAsuK

  18. On May 6, 2018 at 1:12 pm,
    Matthew says:

    Gold appears to have relatively little downside versus stocks right now…
    Gold:Dow daily
    http://schrts.co/eNsW5f

  19. On May 6, 2018 at 1:30 pm,
    OOTB Jerry says:
  20. On May 6, 2018 at 1:35 pm,
    OOTB Jerry says:
  21. On May 6, 2018 at 6:45 pm,
    cmc says:

    (Kitco News) – A commodity bull market is forming and gold has a big part to play, according to one Bank of America Merrill Lynch (BAML) strategist.

    This year, gold prices will rise past the $1,350-$1,375 resistance level, BAML technical strategist Paul Ciana told CNBC on Saturday. And from there, Ciana added, the yellow metal could hit $1,450, where it hasn’t traded at since May 2013.

    “As soon as this $1,350 to $1,375 area goes, which I do think it will later this year mostly when the dollar rally kind of tempers itself and neutralizes, that puts gold on the path to $1,450 so plenty of room there,” Ciana said.

    “Gold prices have been forming a six-year long base,” Ciana said. “In the technical world we like to say, the bigger the base, the higher in space. That’s what gold is doing.”

    The yellow metal’s prices have faced significant downward pressure from the firming U.S. dollar these past few weeks, even ending last week in red for the third consecutive time.

    But, Ciana is confident that the U.S. dollar will not be a hurdle for much longer, as he sees both the greenback and gold going up at the same time.

    “When U.S. financial conditions are tightening, like they are today, compared to 2015, very early 2015, gold prices actually rallied about 12 percent and the dollar index had rallied about 6 percent,” explained Ciana. “There are situations where they both can move in tandem for a short period of time.”

    Gold’s upward trajection alongside the U.S. dollar will however be only temporary and then the inverse relationship will once again overpower other factors, Ciana added.
    http://www.kitco.com/news/2018-05-06/-Gold-On-Path-To-1-450-Despite-Higher-U-S-Dollar-BAML.html