The Slow Bottoming Process Continues
Doc joins me today to share his thoughts on the recent bounce in metals and drop in the stock market. We share the opinion that nothing major has changed for the overall markets but the recent pullback in US markets should be a wake-up call. The gold bulls will need to look to next year for when the Fed might stop its rate hikes and for a more drastic market correction.
Click download link to listen on this device: Download Show
Every time we have a profit taking event Doc tries to call a top.
We’re in a long term bull market the same as we were from 1980 to 2000.
In all fairness jimbo Doc has been pretty spot on for years now calling the gold market. Also Doc said it still has room to run higher but it’s all part of a building toward a much better, more sustainable run.
Really Cory? That’s what I hear Doc saying now. He used to proclaim that the 4th Q of 2018 would see the beginning of gold’s breakout – then it was well maybe it’s Q1 of 2019 and now, he sounds downright bearish or…glum even. So Jimbo looks pretty spot on as far as I can see, even though his view pains me a lot.
Doc has continually moved the goal posts out further for the Gold rally from late 2017, to early 2018, to to late 2018, and now to early/mid 2019 based on what he sees on the monthy charts. In fairness to listeners he has changed his views a lot, but in fairness to Doc the gold market has channeled sideways with mini-rallies & corrections so the monthly charts keep stalling the true breakout.
Nothing should be carved in stone with market forecasting as investors need to stay nimble and adjust to the landscape in front of them. This has been a traders market since 2012 and trying to pick a spot to buy and hold has been a fools errand.
“nimble “…..and quick., I say………..sounds like a Santa Clause rally………lol
Yep sounds about right I recon Doc. Feel as though there needs to be a broader change to the economic landscape that will allow gold to make a sustainable advance into new territory (north of $1360-$1370).
THE bottom was in Dec 2015 at $1045.40, and Gold hasn’t been anywhere close to that level or below it since that time, but it has made 3 attempts to break out, skewing things much more to the bullish side over the last 3 years than the bearish.
>> Despite all the bellyaching about Gold not making a new high since the $1377.50, it has rallied up close to that level in 2017 to $1362.40, and then the 2018 high took that out at $1369.40, just barely missing the 2016 high.
Bottom line: Gold packed on between $200-$300 since that 2015 bottom, and has been consolidating and then putting in mini-rallies since then. One them is going to carry it higher to break out that $1377.50 high from 2016, and then these silly discussions will be in the rear-view mirror.
______________________________________________________
When Gold broke out in late December 2015, (after the first FED rate hike in 8 years) it took out many key moving averages and prior peaks & troughs, that hadn’t been taken out in 3-4 years….. Dead cat bounces don’t do that.
The Gold & Silver miners took an extra month to bottom until January of 2016 to finally break out of the capitulation they were in, and they surged for 8 months until August of 2016. Many of the companies rallied 300%-1000% including some of the mid-size and smaller producers and developers, (not just rogue explorers). Those gains eclipsed anything investors have made in the general stock markets for the last decade for those that know how to trim the winnings when a rip-your-face-off rally plays out. Hell even those buying in late 2015 or early 2016 in many stocks are still up from those times if they just bought and held (which I’m not a fan of in resource stocks until it is a raging bull market that will be sustained. We may see something like that next year and the year there after where buying and holding makes sense for a period).
Since the intial pressure release from the Precious Metals sector bottoming and then then that initial surge, there have been a few rallies each year, and many were quite rhythmic. The rallies after the FOMC meetings where rate hikes were triggered, many of which coincided with the bottoming during tax loss selling in December and into the seasonally strong Q1 Run. The rally out of late summer also provided nice 1-2 month rallies most years.
People must have amnesia of what really played out the last few years, because they act like besides early 2016 that there was not any action in the sector, which is 100% bullshit.
There wasn’t just a rally coming out of Dec 2015 into the Q1 of 2016. (Honestly for those with any memory or that have been around a while, remember that Dec -> Q1 rally was predated by false breakout rally from Dec 2014 into late January of 2015). There were also rallies in the PMs in Dec 2016 into –> Q1 2017, and out of Dec 2017 –> in the Q1 of this year. (ding, ding, ding)
* News Flash – All of those were tradable rallies for gains in many PM stocks of 50%-200%, that dwarfed the gains of holding the general stock markets for entire years, so they are nothing to brush off lightly.
** It was not hard to trade those rallies either as the PMs had bottomed in mid-December every year and then rallied from late December into Jan/Feb over and over again. Yes, people had to buy in tax loss selling season (which isn’t friggin’ rocket science), and then sell during the spike in late Jan or mid Feb. Each mining stock is on it’s own journey, but many had rallies that would make most investors year if they simply acted on the seasonal trends.
If investors in the precious metals sectors did NOT trade those rallies and just sat there like bumps on a log as buy and hold investors, or sat on the sidelines biting their nails waiting for the bottom to fall out, then they blew some of the easiest gains available in the sector the last few years. Those are usually the negative nancies we hear from on here occasionally that whine about the rout the metals have been in when they’ve missed rally after to rally that would outperformed most hedge funds on Wall Street if they’d just done that simple trade each year.
>> I thought it was great when the technician trader, Goldfinger, over at ceo.ca asked this question this last December.
@Goldfinger – “Is it really that simple? Buy $gold miners in December and make big returns within 1-2 months?”
http://cdn.ceo.ca/1d48h46-GDX_December.png
(my short answer back to him was: YES)
________________________________________________________
Bottom line: The bottom was back in 2015 and there have been a series of rallies and corrections since then in the PM space, and many times where people following the news and developments in the mining sector could spot the producers, developers, or explorers that had wind in their sails.
We posted tons of composite charts of Gold & Silver miners of all stripes that outperformed their peers in 2016, in 2017, and 2018, but most sat around griping and didn’t take any action.
Whether the low in August we just saw marks an epic rally that takes us past the 2016 high or just marks, yet another, great tradable rally, the key is most investors have not gotten positioned during the weak periods (for fear of the bottom dropping out…… which it hasn’t in 3 years) and as a result, they miss the gains every single time. It would be funny if it wasn’t so tragic.
We talked on here for months about positioning in late summer for that rally, and personally I thought it would come in late July but the bottom held off until mid-August, so I got positioned a few weeks early. Who gives a crap when the miners take off like they have the last 2 weeks. Once again there are plenty of stocks up double digits and it has all the appearances like there is more room to run for another week or so.
People turn over money to their brokers or hedgies or mutual funds all the time to try and make 10-12%, so why people can’t see making 20%-50% in a short burst of time is way the hell better than tying up money all year long for 10% will always be a mystery.
How about some of the explorers each year that have rallied 100-500%?
How about so many of the producers that rallied 50-100% from last Dec to this Feb/March? Or that did the same thing from Dec 2016 into the first quarter of 2017?
How about so many of the Aussie stocks that have been making money hand over fist the last few years due to the currency exchange and price of gold they are selling in? Some have been rocking it for years, and they’re starting to eye taking over North American and South American stocks now that they are cashed up.
How about the dozens of acquisitions we’ve seen the last few years for a quick 40-60% premium, for those that positioned during the weak periods?
> Yes, some investors were not made whole on those takeovers if they just sat on their hands for years and rode some companies into the dirt, but who ever said that was a winning approach in resource & commodity stocks, which are highly cyclical? The whole point people love to parrot like bobble-heads is buy low and sell high, but as we’ve stated over and over again, most investors like to cry low and buy high, and then get pissed when they lose money and trash the sector instead of their own terrible trading.
The only ones crying are the ones that didn’t get positioned for these rallies, or that did return trips in these stocks, because they were “buying and holding” and rode them right back down.
>> This market has rewarded the active traders the last few years, that embraced the seasonal trends, that used technical analysis as a tool for entries during oversold periods and exits during overbought periods, and for those that combed through the news looking for the stories that were getting attention and traction with the speculators.
Whatever happens this year or next year or the year there after, the markets will ALWAYS be the same…… Opportunity mixed with difficulty.
There are always bargains on any day of the week, always turn-around stories to invest in, and always companies that will get acquired for a 40-60% premium, for those that know how to spot those market inefficiencies and capitalize on them.
Ever Upward!
👍 EXCELLENT!
Thanks Marty. Cheers!
Good post Excelsior. I do sense abit of emotion in your post about negative sentiment towards PMs however. I dont dispute that there has been many gains to be had throughout the various PM miners since the end of 2015. And yes, the uptrend since that low in Dec of 2015 is still in place. Im just making an observation more from the physical metals market perspective. Im but a small player in the whole PMs sector. I dont do any small buy and trades within precious metals mining companies during a set time frame. Ive more or less just chosen some investment diversification and am willing to now bide my time with my physical after making some gains in the past.
Regarding the price movement of gold, I continue to reiterate the importance of that area between 1360-1380 because it has tried and failed at least half a dozen times to pierce and hold in the last few years. I use a “ball park” price range as opposed to exact figures regarding this resistance as the failed attempts occur at different figures as you rightly indicate. It is in no way used to attempt to dilute facts in order to suit my bias.
I think this area of resistance is key for gold (and other PMs consequently) in further moving forward due to the clockwork like nature of the price retreats once hitting this area of resistance in the past. Im no expert but once it clears this region there could be some clear air for gold to further climb when looking at multi-year price charts.
I suppose at the end of the day im more looking through a glass half empty set of eyes.
Good thoughts Ozibatla, as per usual. To be clear, my post wasn’t directed at you, as you are quite fair in your comments and analysis.
It was actually the other KER blog today and some of the responses that elicited that post, and I just thought I’d fix up a few areas and post it here as well.
For the last few years in different articles, editorials, interviews, and in internet chat rooms filled with people making incorrect statements that are complete rubbish when compared to what actually happened. Sometimes, folks need a reminder that their narrative, and what actually happened are 2 different things.
Some repetitive broad-brush statements often parroted around are just complete nonsense, and those fanciful notions need to be dispelled with facts, chats, and results. What happens is when people make comments BS comments and if they are repeated often enough, people start believing their fake news opinions. We see it every single day in other areas of life.
Some of these statements are steaming piles of horse dung….. like “early 2016 was the only rally for a few months or six month… then the bottom dropped out”.
– First of all the rally was 8 months, (not a few months or 6 months) and the bottom never dropped out. Yes many miners pulled back but then have rallied again 3-4 more times. It’s erroneous to paint things in a broad brush and act like that kind of statement should hold any water.
– People throw out all all the time that “the early 2016 rally was just a dead cat bounce” and we’ve posted dozens and dozens of times that dead cat bounces, are proceeded by a further directional move to lower lows. That never happened, so those kinds of put downs that it was a “suckers rally” are as erroneous as they are just trolling.
Dead cat bounces are succeeded by lower lows and the trend back down, and they don’t take out multiple prior peaks or moving average that haven’t been cleared in several years. That doesn’t happen, so people that call it a dead cat bounce or suckers rally are wrongo in the congo. Period.
People that claim the PM sector has been nothing but pain, are the helpless chaps that either held on all the way down from the 2011 highs (which is idiotic) or that bought right, watched their stocks go up, didn’t sell or trim back, and then watched all or most of their gains evaportate. That isn’t the markets fault, that is their fault for playing it wrong. There have been multiple rallies in the PM stocks the last few years, and I’ve personally traded and grown my accounts during each one, as have many other investors. I speak to many investors privately and on chat rooms ever single day an know scores of investors that have been doing very well in the PM and resource sector the last few years, depite the whines and wails by some that “the whole sector has been dead for years….”
These comments are incorrect, discount many of the moves higher, and come from investors that got their clocks cleaned and so now they’re jaded.
I get a kick out of investors that come on and boast about how much better they did in the general stock markets or real estate the last few years, because I hold over a dozen general equity Mutual Funds and they didn’t come anywhere close to the percentage returns I made in my trading account. Not even close…… They were lower stress though (lol). I’ve seen real estate around me double and triple, which is very nice and fantastic, and I hold real estate and hang out with professional real estate investors that have done very well. Sometimes I made the same returns they did in 3-5 years in 3-5 months in PM stocks and other resource stocks, yet they’ll claim their way was better. I disagree.
The point is that any sector, any asset class, any area of investing has opportunities every single day…. Real estate, Biotech, Options trading, Currency or Cryptocurrency trading, bonds, utilities, cannabis, social media, or commodities.
People that claim any sector is all great or all doom and gloom have a myopic focus and often judge everything through a few pet stocks of theirs, or just broad average ETFs. The reality is that there are dozens of deals on the offer this week, and next week, and the week thereafter, for those that can sort, analyze, and act on opportunities when they surface, and liquidate them when everyone feels smug and good about themselves.
Nothing ever changes….. Same as it ever was….. Same as it ever was……
Here, here! Yep, fear mongers, trolls, bullies, drama queens etc etc are in abundance unfortunately… Especially when they can hide behind cyber anonymity. Thanks for the clarification.
+1
Yes, that was really the point of my post, along with dispelling common phrases people keep throwing around, when the facts say otherwise.
Normally I just roll my eyes and scroll past those comments, and often these fallacies and sweeping comments come from very well publicized economic columnists, pundits, gurus, news letter writers, contributors, and household names.
Sometimes, after digesting enough garbage comments, someone has to rout out the weeds in the garden. Sometimes people need to use charts, facts, and examples to show the emperor of negative perceptions is wearing no clothes.
To be clear that conversely doesn’t mean it’s all rainbows and lollipops either; merely that there are opportunistic set ups in almost any sector on any given day.
While the overall PM sector has channeled sideways the last few years, the bias has been to the upside, not the downside, and there were plenty of tradable rallies in mining stocks to make investors money if they were paying close attention and did their homework.
Cannabis Investors Might Be Too High; Failed Breakout In Cannabis Stocks
by @Goldfinger on October 16, 2018
https://ceo.ca/@goldfinger/cannabis-investors-might-be-too-high-failed-breakout-in-cannabis-stocks
Canada Starts Legal Marijuana Sales Wednesday As World Watches Closely
Trevor Hughes 16 hrs ago
Real value (so to speak in this overvalued sector) is in US pot stocks……cannaroyalty is my favourite along with planet 13
I could see the tide now shifting from Canadian to US pot stocks in the short term, as some of the steam comes out of the green surge. Then again, now that Canada has legalized herb, then maybe more investors will still pile in as time goes on and they realize it is a market that is here to stay. Several larger beverage companies are also getting involved as another way to play it.
Pot Stocks Tumble in First Hours of Canada’s Legal Weed Market
Courtney Dentch 3 hrs ago
“Cannabis investors might be too high”. Haha, pun intended???
🙂
Gold Holds Onto Slight Gains Despite U.S. Stock Market Rally
Jim Wyckoff – Tuesday October 16, 2018
Gold Holds Value as U.S. Equities Soar
Gary Wagner – Tuesday October 16, 2018
https://www.kitco.com/commentaries/2018-10-16/Gold-Holds-Value-as-U-S-Equities-Soar.html
‘Not Surprising To See’ Gold Surge Near $1,280/Oz – TD Securities
Anna Golubova – Tuesday October 16, 2018
“Considering that gold is sitting very near a key resistance point ($1,228/oz, 100dma) and that there is record short exposure, it would not be surprising to see a breakout toward the 200dma near $1,277 should U.S. equities show additional weakness,” said TD Securities head of commodity strategy Bart Melek.
FXTM: Investors Return To Gold; ‘Further Appreciation Is In The Cards’
Allen Sykora – Tuesday October 16, 2018
https://www.kitco.com/news/2018-10-16/Gold-Silver-Precious-Metals-Daily-News-Briefs.html
(ALO) Alio Gold Selling Non-Core Assets To Coeur For $19 Million
Kitco News – Tuesday October 16, 2018
Alio Gold Inc. (TSX, NYSE American: ALO) has agreed to sell non-core assets in Nevada to Coeur Rochester, Inc., a subsidiary of Coeur Mining, Inc., for $19 million payable in shares of Coeur common stock. The assets being sold include the Lincoln Hill project, Wilco project, Gold Ridge property and other nearby claims. Alio also says it reduced its outstanding debt with Macquarie Bank Ltd. from $15 million as of June 30 to $5 million currently and expects to eliminate the debt during the fourth quarter. In addition, Alio says it has settled a $5 million contingent liability that the company acquired with its acquisition of Rye Patch Gold Corp. and the Florida Canyon Mine earlier this year. “These transactions are consistent with our strategy to focus on optimizing our operating mines to generate cash flow,” says Greg McCunn, chief executive officer. “As a result of the reduction in debt and increasing our working capital, we are well positioned to ramp up Florida Canyon and to continue with the pit pushback that is under way at our San Francisco Mine.”
https://www.kitco.com/news/2018-10-16/Gold-Silver-Mining-Daily-News-Briefs.html
Coeur got the better end of that bargain in picking up on the cheap what Alio offloaded to pay off their debt with.
Those development assets at Lincoln Hill, Wilco, and Gold Ridge were the future feed sources for Florida Canyon. Rye Patch won the lawsuit from Coeur in the first place by staking land all over that district, some of which ended up being future feed their Rochester mine. that gave them the NSR back in the day. Those properties were adjacent to that area and where most of the future development in Nevada was going to come from.
Now Coeur gobbled it all up on the cheap, so good for them, they won the long game, and Alio got out of a tight spot, but at a great future cost.
In other words, those project like Lincoln Hill, Wilco, and Gold Ridge had much more exploration to do on them, and were the untapped upside potential from Alio’s acquisition of Rye Patch. Now they basically sold them for $19 million and only kept the mostly depleted Florida Canyon mine complex. Sure there is still exploration upside around that, but the master plan was always to have Lincoln Hill and Wilco feed Florida Canyon and now Coeur will just fee Rochester with those deposits.
I own shares in Alio since they took over Rye Patch, and shares in Coeur since they took over Northern Empire, so in a way the assets just moved from one stock to the other, it’s just there seemed like more upside potential keeping those in the smaller more beaten down producer, as any exploration success will get lost inside of Coeur’s production profile. I was personally hoping that over a few years that Alio would expand and start mining from Lincoln HIll and Wilco and THEN Coeur would offer to buy the whole project or Alio itself. Now, Coeur got the goods just by issuing some of their paper. Well played.
It is similar how MUX, AR, and AG raided Primero for their assets and how the assets changed hands, but there would have been much more upside if Primero could have emerged from their strikes and financial issues on their own and kept those assets. There would have been the potential for more upside percentage moves, but I own some of MUX, AR, and AG and so the asset sales just stayed in the portfolio in different vehicles.
Lastly, it reminds me of the transaction where Santacruz Silver sold their San Felipe project, being optioned from Hochschild to Americas Silver for pennies on the dollar. USA/USAS made out like bandits on that acquisition from Santacruz, and while SCZ got to pay off debt, USAS will reap expanded benefits for years to come.
Got to tip my hat to the mid-tier Silver/Gold producers like Coeur, First Majestic, McEwen, Americas Silver….. They are making wise acquisitions the last 2 years, while many smaller Jrs are distressed. I’m fine owning those mid-tier producers when they continue to make value accretive acquisitions.
Thanks Excelcior. That is good and timely information. I own some Coeur and was considering buying a little more.
Yeah, I was considering selling Coeur, but they keep acquiring more and more quality assets, and I may just hang onto my shares a bit longer, as CDE had good upside torque back in 2016 compared to most larger companies. They’ve really filled up their pipeline for the next 5-10 years, so I see them as a solid larger Mid-tier bordering on a Major if you look at them in the context of the Silver space.
In 2015 they acquired the Warf Mine from Goldcorp, and finalized the takeover Paramount Gold & Silver (which I played the arbitrage on during that time).
Last year in 2017 they took over the Silvertip Mine in BC which was a game changer in their production profile and will be quite profitable as they continue to expand the exploration and optimize the mine. It didn’t get much fanfare but was a great bolt on asset.
– They also blew out their Bolivian assets selling them to Argentum Investment, but retained a 2% NSR on it, and that giving them upside without the jurisdiction risk. Very wise.
– Now in 2018 they have acquired the killer Nevada asset from Northern Empire, and now all the old Rye Patch development projects near their Rochester mine in Nevada from Alio Gold.
Unlike the sloppy overprices acquisitions we saw from larger producers back in 2010-2012, these last few years acquisitions have been pennies on the dollar, and longer term strategies to win as the metals cycle unfolds. Impressive.
Hecla is another company that added a few good assets over the last 2-3 years at the right time and really set up their future.
Once again, it is really the larger Mid-Tier producers that are doing most of the great acquisitions, and not the huge Majors (with the exception of the latest Barrick/Randgold merger).
In looking at Coeur’s production profile now, they really have more of a Gold focus than a Silver focus, as their 2018 estimate is produce 59% Gold, 36% Silver, 2% Lead, and 3% Zinc.
(see page 6 of their latest Corporate Presentation)
http://www.coeur.com/_resources/presentations/2018-09-25-DGF-Final-Broad-Presentation.pdf
It is interesting that CDE is still reporting in Silver Equivalent Ounces though. 😉
If they do another acquisition next year, then it would be nice to see them grab a distressed Silver company to get their ratio more like 50/50 Silver/Gold.
Thanks for all the info. It would be great to hear your take on the Barrick-Rangold merger. I own a fairly sizable position in Barrick.
My take is that it was a good merger for the sector in that it got many larger institutional funds and generalist investors to sit up and take a look at the Gold mining sector again, and in particular the consolidation going on in African miners.
I believe the main goal was to get Mark Bristow into the managment with Barrick, which is wise, as he is a solid leader and has done a great job at the helm of Randgold.
I believe we’ll continue to see more consolidation of companies and larger mergers like this as the next year or two rolls out. I also expect to see companies marrying safer jurisdictions with more risky jurisdictions for a more balanced approach. For example, many of the Aussie companies are going out and reviewing other companies while they are cashed up to potentially take out quality assets on the cheap to expand their global influence.
This is a great time to be scouting out distressed producers with quality assets that may just be cash-starved, or development projects with good economics looking for a suitor, as they’ll be on the short list for the big boys to grab next.
Speaking of African companies that would make great takeover candidates, I’ve been starting to position in Roxgold and they continue to impress.
_________________________________________________________
(ROXG) (ROGFF) Roxgold Reports Third Quarter Production Results
by @newswire on October 16, 2018
> Highlights:
– 30,532 ounces of gold produced in Q3 driven by record quarterly processing throughput of 78,357 tonnes – 15% above nameplate capacity
– 106,812 ounces of gold produced YTD 2018 which puts the Company in a strong position to achieve the upper end of its guidance range of 120,000 – 130,000 ounces for the full 2018 year
– Receipt of all permits and decrees required for Bagassi South mining and the process plant expansion
– Construction works at Bagassi South continue on schedule and remains on track for delivery of first ore in late Q4 2018
– Operating seven drill rigs currently at Yaramoko targeting extensions to the 55 Zone – six from surface and one from underground
> Upcoming Catalysts
Q4 – Plant expansion and infrastructure construction completion
Q4 – First ore from Bagassi South
Q4 – Commencement of Kaho drilling campaign
Q4 – Commencement of Bagassi South follow up drilling
Q4 – Completion of 55 Zone resource development program
https://ceo.ca/@newswire/roxgold-reports-third-quarter-production-results-5f88e
Thanks for your thoughts on Barrick and the management upgrade. Good to know. I don’t have any African miners given jurisdiction risk. I had bought some Platinum Metals Group, but got killed in it. Just not my cup of tea as I don’t know the political systems well enough to sniff out trouble.
West Africa has been doing better the last few years, but obviously the political winds change on a country by country basis. I generally feel good about gold miners in Burkina Faso, Senegal, Mali, Cote d’Ivoire, Ghana, Sierra Leone, Guinea, and Liberia.
I like Orezone, Hummingbird, Roxgold, Samara, Teranga, Perseus, Avesoro, and Seamfo.
As for South African nations….. it’s a hot mess. Yes, I also got killed on Platinum Group Metals and it is a shame as they had 2 world class assets, and simply drove the company right down the drain. The management were out of their league and destroyed the value with debt and dilution to the point where they had to divest and all the hard work will benefit other companies. Truly a shame on that one.
“I Hate This Question On Gold,” Says Alain Corbani
Oct 15, 2018
Guest(s): Alain Corbani Head of Commodities, Finance SA
Alain Corbani, head of commodities at Finance SA, said that these two clues may hint at the next peak on gold.
“At $1,200, gold mines are breaking even, so $1,200 is the bottom. That’s the first answer I can give you. The second one is that usually the cycle peaks when the net margins of the industry exceed 25%,” Corbani told Kitco News on the sidelines of the Mines and Money conference in Toronto.
“Additionally, Corbani said that real interest rates will remain low and the U.S. dollar will weaken, and these two indicators have the highest negative correlations with gold.”
Good info all above, cheers!
Sorry I got the day wrong….here’s Joe Mazumdars bnn market call episode
https://www.bnnbloomberg.ca/market-call/full-episode-market-call-for-tuesday-october-16-2018~1511004
Here is some good news for GZZ Golden Valley shareholders from their JV partner Sirios.
______________________________________________________
(SOI) Sirios intersects 5.2 g/t Au over 30.2 m on Cheechoo
https://ceo.ca/@nasdaq/sirios-intersects-52-gt-au-over-302-m-on-cheechoo
Seems like only rzz news moves gzz these days
That is only because so few eyeballs are on the resource sector at this point in the cycle, but that will change over time.
Honestly, that is fine with me, because as I make profits in other trades I’ve been dumping them into the royalty companies like Golden Valley, EMX, and Maverix for safe-keeping. If some of GZZ’s partners like Sirios, Bonterra. Alexandria Minerals or Battery Minerals continue to make progress “under the radar” then it gives me more time to acquire a larger stake while nobody is paying attention.
In a year or two some of the companies will have a larger following and trace back the NSRs to Golden Valley, and maybe a lightbulb will go off.
Based on the intellect of most retail investors(pot players and possible users) I’m not liking the chances of them connecting the dots.
It will be the institutional funds and larger private equity investors that turn the tide, and those are the eyeballs that are needed. Once they connect the dots and take larger positions in some of the prospect generators and royalty companies, then the fickle retail crowds will pile in on top of them.
I’m happy to keep acquiring ahead of both groups.
Yeah I’m looking to get out of US pots eventually and metals are where the profits are going……you not in Evrim as well for prospect generator???
That seems like a good rotation of assets strategy Wolfster.
No I missed the big move in Evrim on their drill results, but have followed along with their surge. You can’t kiss all the pretty girls at the dance!
Lol……you can try……I will say there’s a few cases I think where I’ve said the same thing about missing the big move on results and I can say in most cases it was just the start of a huge move…..Novo would be one mover that kept on going for a while….I no longer let the first move dictate things if I missed it…..at least I try too. Lol…..I only hold a small position in Evrim and I’m not up on it really. Played it like you played Novo….sold out early on first run. 😳
haha! Trust me I have PLENTY of Gold & Silver Producers, Developers, Explorers, and Prospect Generators / Royalty companies.
With Novo, it became so much larger of a story and gold rush phenomenon than anyone was projecting, and I sold after there was quite a run post metal-detector videos and Gold nugget discoveries, but I should have realized people would keep flocking for the upside narrative. It truly as a unique story last year, and while I’m sad I sold early, I’m not sad about booking nice profits on it, as there are many rabid speculators that piled on at much higher prices that have rode thing straight down since then and have large losses on it at present levels. I’m actually considering wading back in soon.
As for Evrim, I like the tight share structure, and that they had some good drill results, but most of that gain popped in the month of April and has treaded sideways since then as the market cap of $110-$120 Million is mostly fully priced in at this point for what they have concrete results on. I can’t see paying $150-$250 million in market cap on EVM unless they dig up a lot more great results and do a bit more on the economics & metallurgical work. I know they have more drilling to go, and markets can get irrational during the “discovery” phase, but eventually the gravity of economic reality sets in. Still, another company can always make a move on them if they want the kudos for doing further exploration, so it is definitely a company that has done well, when others struggled.
(TK) (TKRFF) Tinka continues to expand Zinc mineralization and discovers high-grade silver veins at Ayawilca Peru
October 15, 2018
> Highlights include:
_ A18-152:
1.2 metres at 13.8% zinc, 0.8% lead, 817g/t silver and 64g/t indium from 156.3 metres depth.
– A18-158:
1.5 metres at 9.6% zinc, 1.2% lead and 32g/t indium from 458.4 metres depth.
– A18-125:
1.4 metres at 22.7% zinc & 99 g/t indium from 531.4 metres depth.
Note: Intercepts above are down-hole intercepts of ‘mantos’ hosted by limestone or sandstone. True thicknesses of the mantos are estimated to be at least 90% of the down-hole intercepts.
(TML) (TSRMF) Treasury Metals Announces 1.2 Million Ounces Gold Equivalent Measured & Indicated Mineral Resource Estimate with Gold Grade Increase; 64% Increase in Measured and Indicated Underground AuEq Ounces
by @newswire on October 17, 2018
https://ceo.ca/@newswire/treasury-metals-announces-12-million-ounces-gold-equivalent
A nice improvement in TML’s mineral resource, and this should put them on the radar of some of the big boys for a potential takeover over the next 12 months.
Europe to Spend Billions on Lithium-ion Battery Plants
Cecilia Jamasmie | 2 days ago
“One in every twenty Europeans works in the automotive industry and the European Union believes that unless it catches up on battery technology, those jobs are at risk.”
“That’s why the group is planning to allow state aid for electric battery research and will offer billions to companies willing to build giant plants, it said Monday.”
“Public investment in developing the battery industry in the EU is a no-brainer.” — European Battery Alliance.
“Batteries will be as essential to the automotive industry of the 21st century as the combustion engine was in the 20th century,” Maros Sefcovic, energy vice president of the European Commission, said commenting on the one-year anniversary of the European Battery Alliance (EBA). “If the EU is to maintain its leadership in the automotive sector, but also in clean energy systems, it has to have independent capacity to develop and produce batteries.”
http://www.mining.com/europe-spend-billions-lithium-ion-battery-plants/
Dutch battery maker to invest $1.9B in China cell factory
Bloomberg News | about 22 hours ago
“Dutch battery maker Lithium Werks BV, founded earlier this year, is investing 1.6 billion euros ($1.85 billion) in a massive lithium-ion cell factory in China as demand for batteries is surging.”
“Batteries will play a key role in both the energy industry to complement the increasing share of intermittent renewable power, as well as a cleaner alternative to petrol and diesel engines prevalent in cars, buses and trucks across the world.”
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/
Investors that still doubt the EV, Electric Bus, Electric Bike, or BatteryStorage market, or think it was all about Tesla are sadly mistaken, and it is painfully obvious for anyone paying attention that for the last few years this has been a global phenomenon and there are battery plants going up like crazy all over the place (especially in Asia).
Most companies in the Lithium mining space are garbage, but there are legitimate Jr Producers & Developers that have smoked most other sectors from 2015 to present. The market shows few signs of slowing down, so while most Li miners have pulled back hard since late 2017 or early 2018, this is a good time to go bottom fishing for value in the companies that will be part of the equation moving forward.
EDF storage feeds San Diego Zoo
1MW battery system aims to help mitigate spikes in usage and lower demand charges
17 October 2018
Solar-and-storage co-location potential within ‘EFR on steroids’ DS3 market unclear
“Ireland’s DS3 flexibility market will deploy the fastest reacting batteries in the world under an opportunity dubbed “Enhanced Frequency Response on steroids” by Everoze’s partner for energy storage and flexibility.”
“Under DS3, up to 140MW of capacity will be procured and have to respond within 150-300 milliseconds. While Eirgrid has not specified that battery storage will be the only technology procured, only this technology is expected to be able to deliver on the requirements of the scheme. This, Jones said, made DS3’s ancillary services are “really battery friendly”.
EX…….thanks for working your arce off to provide all the great info…..day after day, month after month , and year after year………..GREAT JOB>>>>>>
And I did say…..THANK YOU….And …..APPRECIATE VERY MUCH…….THE LONG OOTB
Ha! Thanks for the kind words OOTB. Right back at ya man!
Always glad to share ideas with the KER crew. 🙂
Yes cheers for the info Excelsior.
Thanks Ozibatla. I enjoy reading your thoughts as well. Ever Upward!
Well a quick thought here on the immediate action of the gold price. It looks as though the $1230 region is acting as abit of resistance in the interim. That is fine if we are basing in this range and the price doesnt retreat too far. Perhaps just a negative day when one sees the dollar up, the euro and yen are down and talks of more interest rate hikes.
$1235 marks a very important resistance but as you probably know, I think it will be overcome very soon.
http://schrts.co/FpED7h
Yes it was this moving average I was alluding to in terms of resistance. Hopefully we do clear it soon enough and move on to the year on year uptrend of $1280.
The dollar also seems to be finding some support around its 50 day moving avg. A small headwind perhaps for gold in the interim?
(DV) (DOLLF) Dolly Varden Intercepts 9.2 metres Grading 566 g/t Silver in the Moose-Lamb Zone
@newswire on October 11, 2018
https://ceo.ca/@newswire/dolly-varden-intercepts-92-metres-grading-566-gt
The Dow currently looks better than gold did in 2006-07, but it is producing an eerily similar pattern on the weekly chart. Far from a top, the Dow will probably form a triangle consolidation between the recent peak and the 50 WMA over the next few months, which should produce a spectacular leg up over the next couple of years just like gold in 2006-2007 when it broke out.