Weekend Show – Sat 9 Mar, 2019

Hour 1 – Post-PDAC Rumors, Themes, and Company Updates

Full First Hour

The first hour of this week’s show is focused on recapping the recent PDAC conference and a couple comprehensive company updates. While the metals market, in terms of the stocks, is still very selective there are some developing stories that still offer opportunities. Listen to the first two segments and you will hear some of the same names being mentioned.

Please email me with any company suggestions and/or questions and topics you would like for me to discuss – Fleck@kereport.com. I love hearing from all of you!

  • Segment 1 – Byron King recaps his PDAC and shares some of his thought on investing in a producer with exploration upside.
  • Segment 2 – David Erfle, Founder of The Junior Miner Junky has some insights on the rumors from PDAC how the gold market is “a tail of two markets”.
  • Segment 3 – Jeff Hussey, President and CEO of Osisko Metals provides a comprehensive update. We discuss the maiden resource at the Eastern Bathurst Mining Camp, exploration plans for this year, and answer your questions about potential water issues at Pine Point.
  • Segment 4 – Ivan Bebek, Executive Chairman of Auryn Resources answers your questions about a potential Company split, Peru exploration plans, and what is happening at Committee Bay.

Byron King
David Erfle
Jeff Hussey – Osisko Metals
Ivan Bebek – Auryn Resources

Comments:
  1. On March 9, 2019 at 3:28 am,
    Skeeta says:

    Thanks for the weekend show guys as always.
    Much appreciated.
    Cheers.

    • On March 9, 2019 at 12:02 pm,
      Excelsior says:

      Cory – Thank you for asking Jeff Hussey at OM about the macro picture on the Zinc concentrate, and about the water mitigation at Pine Point. Great questions and very good responses from Jeff.

      It was also nice to hear some clarity on the exploration work completed and underway at both Bathurst and Pine Point. Great interview!

      • On March 10, 2019 at 9:51 am,
        Excelsior says:

        I reposted this interview w/ Jeff for some of the Zincsters over at ceo.ca to mull over, and address the prior attacks that Pine Point and Darnley Bay experienced (due to a cult following of a retired mining engineer still living in the past 2 metals cycles when he was actually relevant, and a few prominent newsletter writers that foolishly takes what he says for gospel without doing the research themselves).

        If people actually listen to Jeff, (who is far more aware of their own assets and company than some internet pundits) when he unpacks their pumping strategy using more modern technology and water modeling techniques in their central zone it is clear they have a handle on it. He also gets into how they will approach the mining sequence west to east, and how they’ve accounted for that in costs for their economic studies, even though some of the initial attacks on Stockhouse and Ceo.ca were that they weren’t factoring those in. Always great to get the facts versus the “fake news” of the blog-o-sphere. 🙂

        Hopefully this interview and coverage puts the water concerns and overly dramatized narrative to rest so investors can focus on their exploration and resource expansion – which is far more important.

        I wish the team over at Osisko Metals all the success they deserve.

  2. On March 9, 2019 at 6:28 am,
    bonzo barzini says:

    I hope that Auryn does not split in two. As Abe said, “A house divided against itself cannot stand.”

  3. On March 9, 2019 at 6:40 am,
    Excelsior says:

    (while this position is a bit late to the party, since Gold Bottomed in Dec of 2015, at least more pundits are waking up to this reality, after years of a lack of interest)

    _________________________________________

    David Rosenberg – We are Back in a Bull Market for Gold

    by @PalisadeRadio on March 8, 2019

    https://ceo.ca/@palisaderadio/david-rosenberg-we-are-back-in-a-bull-market-for-gold

    • On March 9, 2019 at 6:41 am,
      Excelsior says:

      Gold & Gold Miners At Key Support As US/China Trade Deal Nears

      by @Goldfinger on March 7, 2019

      https://ceo.ca/@goldfinger/gold-gold-miners-at-key-support-as-uschina-trade-deal-nears

      • On March 9, 2019 at 8:42 am,
        Excelsior says:

        My buddy Nick “The Mining Book Guy” and his research on West African explorer (SWA) Sarama Resources which I’ve been following for a while and accumulating recently got a nod in Goldfingers Weekly wrap. Good stuff!

        ______________________________________________________

        CEO.ca Weekly Wrap – 3/9/2019

        by @Goldfinger on March 9, 2019

        “$ABN $AMX $BNCH $GTT $SKE $SWA $TSXV #Gold #Silver featuring @MiningBookGuy and a special tribute to my father on what would be his 89th birthday today. ”

        https://ceo.ca/@goldfinger/ceoca-weekly-wrap-392019

        • On March 10, 2019 at 10:04 am,
          Excelsior says:

          PDAC Mining Investment Roundtable Discussion (David Erfle, @MiningBookGuy, Brian Leni & Bill Powers)

          MiningStockEducation – Mar 8, 2019 #AudioInterview

          “The annual Prospectors and Developers Association of Canada Convention (PDAC) is the world’s largest and premier international event for the minerals and mining industry. At this event, Bill Powers hosted a roundtable discussion with David Erfle (JuniorMinerJunky.com), Nick the @MiningBookGuy and Brian Leni (JuniorStockReview.com) to discuss the conference and current risks and opportunities for investors in the junior mining sector. ”

          “Some topics of discussion included mining jurisdictions, how junior mining CEO’s raise money, what to look for in a company’s share structure and much more.”

          https://www.youtube.com/watch?v=fM_ESM8PGxU

  4. On March 9, 2019 at 7:02 am,
    bonzo barzini says:

    I want to buy more AUG, MUX, and NSRPF. All have exciting drills turning.

    • On March 9, 2019 at 8:47 am,
      Excelsior says:

      Yes tis the season for the drills to start turning in some jurisdictions, but they’re always turning somewhere on the planet. Parts of Canada get boring due to snowfall at this time of year, but many areas drill year round.

      Many companies just peppered the newswires with press releases prior to or during PDAC and the recent Metals Investor Forum, with the hopes of capturing investors interest and money flows.

      It’s daunting to parse through it all and come away with which projects are flash in the pan, which are making measured success, which are striking out slowly and painfully, and which are uncomfortably silent.

      Hoping everyone finds some good companies to ride up this next wave of the metals cycle with. Cheers!

      • On March 9, 2019 at 11:42 am,
        Big Al says:

        Excelsior, Cory and I are trying to find some the “good companies” that are out there. I am out of this market from an investment standpoint right now but I am looking to quickly get back in and when I do I our “family” will definitely be the first to know.

        • On March 9, 2019 at 12:03 pm,
          Excelsior says:

          That’s good to hear Big Al. Now is a good time to find the gems in the rough before the next wave of the cycle takes off. Thanks for all that you and Cory do and happy hunting out there.

    • On March 9, 2019 at 9:43 am,
      Excelsior says:

      Cheaper, easier, still risky: Investing after a 10-year run

      by @canadianpress on March 8, 2019

      “As the bull market for U.S. stocks celebrates its 10th birthday, joining the party has never been cheaper or easier.”

      “Investors can buy or sell stocks on their phone with the flick of a thumb, and for a much lower cost than was possible on March 9, 2009, when the S&P 500 finally hit bottom after the financial crisis. And a growing number of them are investing passively with funds that track a benchmark such as the S&P 500 or Nasdaq 100 indexes.”

      “Investors also have more choices after the industry introduced thousands of funds to cover everything from the broadest swaths to the smallest niches of the market.”

      “Instead of trying to weed out the best stocks from the worst, index funds own all the stocks in a given index. Because of that, index funds offer lower fees than actively managed funds. They’ve also been the better performers since the bull market began.”

      “In the largest category of U.S. stock funds by assets, just 11 per cent of actively managed funds were able to beat their index-fund peers over the 10 years through 2018, according to Morningstar.”

      https://ceo.ca/@canadianpress/cheaper-easier-still-risky-investing-after-a-10-year-run

      • On March 9, 2019 at 9:46 am,
        Excelsior says:

        Monetary Policy: Normalization and the Road Ahead

        March 08, 2019 – Chair Jerome H. Powell – Board of Governors of the Federal Reserve System

        https://www.federalreserve.gov/newsevents/speech/powell20190308a.htm

      • On March 9, 2019 at 11:30 am,
        Big Al says:

        Another great comment Excelsior.

        • On March 9, 2019 at 11:36 am,
          Excelsior says:

          Thanks Big Al. – It will be interesting to see what the next 10 years brings when reflecting back on the meteoric rise in the general equity markets from 2009 – 2019.

          Somehow I don’t see the sailing staying so smooth as the debt bubbles and over-leveraged derivative markets come to a head in the next financial event. The financial currents and money flow waves are about to get choppier and quite a bit more turbulent.

          • On March 9, 2019 at 11:39 am,
            Excelsior says:

            In addition, I agree with the premise that the huge shift into passive index funds for the last decade has run it’s course. This passive investing trend is about to be upturned and the role of actively traded funds and the ability to pick individual breakout stocks will come back into focus for those seeking out-performance in the new paradigm.

  5. On March 9, 2019 at 7:16 am,
    Snowy says:

    Thanks Cory for asking the questions. Great interviews as always. Your team puts a lot into this and it definitely shows

  6. On March 9, 2019 at 10:31 am,
    larry says:

    I just want to state the obvious…Trump wants to win in 2020….Amoung many other things in order to initiate his debt reset plan…EG weak USD vs Strong gold price…..So i still believe we consolodate in this gold price range for another year and a half…If indeed that can be managed…imho

    • On March 9, 2019 at 10:53 am,
      Big Al says:

      Thanks for the opinion, Larry. Wow, another year and a half!

    • On March 10, 2019 at 7:48 am,
      Marty says:

      Pippa Malmgren on MacroVoices several week back was suggesting she didn’t think Trump would seek a 2nd term but pursue establishing the Trump News Network.

  7. On March 9, 2019 at 4:10 pm,
    Markedtofuture says:

    Artemis Resources plans diamond drilling at Carlow Castle after 71% boost in JORC resource

    https://www.youtube.com/watch?v=G5G8vj6IduQ

    • On March 9, 2019 at 7:45 pm,
      Skeeta says:

      Stock tumbled 7.6% on the news.

      • On March 10, 2019 at 9:51 am,
        david says:

        Australian miners would stand a better chance of an uptick if they published recipes for chocolate chip cookies, rather than expanding news of a 71% increase in resources. Speculators may become confused, but like cookies.

        • On March 10, 2019 at 10:09 am,
          Excelsior says:

          Many of the Australian producers have been on a good clip for the last 2 years though due to the currency advantages and Gold priced in Aussie dollars. I believe it was Byron that reiterated that point in his interview this weekend.

          According to different show attendees at mining shows in London, South Africa, Asia, and even the more recent Cambridge House VRIC, there are many more Aussie investors out and about percolating and circulating.

          Many believe that in 2019 and 2020 we’ll start seeing Aussie Mid-Tiers start expanding to take over mining companies abroad and diversify their jurisdiction exposure. It will be interesting to see if the cashed up Australian producers decide to go shopping later this year….

          • On March 10, 2019 at 1:16 pm,
            david says:

            I hope you are right. Obviously KL has not been having problems. I was thinking more of the Pilbara miners like Artemis, DeGrey, Paxton, Kairos and Pioneer that have been shorted into the ground. In watching their US activity, it seems like most daily gains, if any, are zeroed out at closing as if someone wants retail to keep buying Facebook or other over leveraged product.

          • On March 10, 2019 at 11:59 pm,
            Excelsior says:

            Yes, the Pilbara exploration plays have had it tough for the last year, but are only a small subsector of the Australian Gold miners. They went from a speculative phenomenon to a “sell the news” situation, where investors have been exiting on any liquidity news events. Hopefully they get a bit more traction for investors again later this year.

  8. On March 10, 2019 at 8:11 am,
    Excelsior says:

    Here is a great Silver chart that a technician @Ty posted over at ceo.ca today:

    @Ty – “$Silver Weekly”

    http://cdn.ceo.ca/1e89r3s-Screenshot%202019-03-10%20at%2011.41.23.png

    • On March 11, 2019 at 2:43 am,
      Excelsior says:

      Graddhy – Commodities TA+Cycles

      $FR.TO weekly & monthly – FIRST MAJESTIC SILVER

      “Here is another $SILVER miner leader (number one among producers I would say) that seems to have broken out. That´s a wonderful and gigantic rising triangle in the making.”
      — Graddhy

      https://twitter.com/graddhybpc/status/1104708506328973312

  9. On March 11, 2019 at 12:09 am,
    Excelsior says:

    Glencore, Goldcorp and Yamana ink agreement to integrate Argentina mines

    Mining dot com Editor | Mar. 8, 2019

    http://www.mining.com/yamana-glencore-goldcorp-ink-agreement-integrate-argentina-mines/

  10. On March 11, 2019 at 12:34 am,
    Matthew says:

    Australia’s Newcrest buys Canadian mine for $807 million, door open to more deals
    https://ca.reuters.com/article/businessNews/idCAKBN1QR0TT-OCABS