Comments On Treasuries, US Markets, and Metals
Craig Hemke joins me today to share his thoughts on the treasury markets, US markets and the metals. With the 10 year hitting resistance again around 3.25% and the US markets slowly recovering the Fed will get put in a tough position heading into next year. As for the metals everything seems to be going against them right now however they are maintaining this lower range. As we move towards the end of the year the metals need to resist breaking down.
Click download link to listen on this device: Download Show
Another one bites the dust…… (R) (RDEMF) Red Eagle Mining
Red Eagle was off to a brilliant start in Colombia until they ran into ground stability problems underground and had to pause their mining about a year ago. They had to raise money as investors were abandoning ship, to build out their paste & backfill plant to try and cement the walls as they dug deeper, and they went through a tough clay like mushy area that was hard to get through, until they got to a weak and crumbly section. Many blamed this on bad mine planning, economic studies, exploration and truly understanding their asset, and they weren’t wrong.
Then to consolidate projects they acquired their discovery arm in Colombia Red Eagle Exploration at an odd time (when they didn’t really have the money or share structure to do so), and the market gave them 0 value for this, and it actually hurt them worse.
What is odd is how sharp of a team that they had and honestly a pretty damn good mine, but they failed at mining it economically or efficiently, diluted down share holders to oblivion, had to relaunch mining operations in a falling metals price, did a botched acquisition, and now they have halted and crashed, and the biggest telltale sign…… their website was just taken down.
While it is all too common for Jr miners to go belly up, this was a particularly sad story to watch play out.
They were exciting new producers with an apparent bright future, that had delivered on all their timelines and milestones from explorer to developer to producer. They had impressed most of the industry.
However, after launching into production they did a big ole’ belly flop.
http://media.giphy.com/media/2AekYMzUTzfnq/giphy.gif
RIP
Red Eagle Mining Received Default Notice
by @nasdaq on November 9, 2018
https://ceo.ca/@nasdaq/red-eagle-mining-received-default-notice
Lots of speculation on what will happen, but bottom line, they were crippled by debt in the end and didn’t get things restructured in time. A sad outcome to a company that had all the right ingredients 2 years ago, and shot across the bow for investors to stay vigilant and aware of companies delivering on their promises, strategy, and overcoming obstacles.
Another black eye for Jr Mining, and a number of newsletter writers that pitched them in the past, and a sad day for bagholders. It’s unclear what will happen when it gets unhalted, but it looks like the music has stopped playing.
Top Copper miner’s output slump adds to worry on metal shortfall
Reuters | about 14 hours ago
http://www.mining.com/web/top-copper-miners-output-slump-adds-worry-metal-shortfall/
Will Utter Destruction Continue For The Gold Majors?
Nov 09, 2018 – Marin Katusa Chairman, Katusa Research
“Gold miners have suffered of late, owing in part to poor capital allocation choices from management, said Marin Katusa, chairman of Katusa Research.
“I’ve known David Garofalo [CEO of Goldcorp], and they announced today they’re doing a massive buyback of shares. They’ve had a horrible quarter…they’ve been such poor allocators of capital. And, if you’re a shareholder, are you investing in the company to reduce the number of shares, or would you rather have them grow and improve their margins?” Katusa told Kitco News on the sidelines of the Silver & Gold Summit in San Francisco, “Because, as an investor, I can place my own capital, I don’t need management to place the shareholders’ money.”
Katusa said that “investors should focus on political risks, margins, and what their investment time frame is when making investment decisions in the mining sector.”
Doug Casey: Most Mining Stocks “Are Just Crap”, Except These Ones (Part 3)
Nov 08, 2018
“Doug Casey, founder of Casey Research, prefer the royalty streaming companies over traditional miners.”
“In an interview with Kitco News on the sidelines of the Silver & Gold Summit in San Francisco, Casey said that he likes dividends in miners.”
“Now is an excellent time to buy into the mining business, even though it is the worst business in the world from a business point of view. It is a crappy, 19th century, choo-choo train business but the good news is that when these stocks are cheap and everybody hates them, these stocks are explosive on the upside,” he said.
Market Has “Given Up” On Silver, So What’s Next?
Nov 07, 2018 – David Morgan The Morgan Report
The silver market has been “stagnating” and needs renewed investor interest before prices recover and the gold-silver ratio drops below 80, said David Morgan editor of The Morgan Report.
“What’s going on is stagnation in the market. There hasn’t been any fresh buying, there’s been a lot of stale longs that have given up on the silver story,” Morgan said.
“On supply and demand fundamentals, Morgan noted that due to low silver prices, the mining level has subsided but above-ground stockpiles of silver have increased. ”
Top Resource Stock Picks of 2018 – Katusa Krossfire (Grant Williams wins the stage)
Cambridge House International – Nov 5, 2018
“What are the top resource stock picks of 2018? Watch as Marin Katusa (Katusa Research) discusses the current markets with investment experts Brent Cook (Exploration Insights), Brent Johnson (Santiago Capital), David Morgan (The Morgan Report), Doug Casey (Casey Research LLC), Frank Curzio (Curzio Research), Grant Williams (Vulpes Investment Mgmt) and Rick Rule (Sprott US Holdings Inc.).”
I was only reading this article this morning. Does make some sense when you see whats happening to the silver price.
With golds 50 day ma sloping upwards, it wouldve been positive to witness a bounce off that line as we approached it. Now having fallen through it by some $5, I wonder the significance of this development? If we get follow through selling on Monday it could well be a bearish development that takes us back to Augusts lows. Also not being able to complete a weekly close above the 200 week ma over the last month will turn this area into solid resisitance next time we approach it, considering the recent price downtrend.