Weekend Show – Sat 6 Apr, 2019

Hour 1 – Jesse Felder, Josef Schachter, Joe Mazumdar, and Metalla Royalty

Full Hour

As we kicked off Q2 we continue to see US markets move higher and metals move sideways. The US Dollar is grinding higher and yields bounced but overall many sectors remain range bound.

Please everyone keep in touch by emailing me at Fleck@kereport.com. I love hearing what you think of any companies we have on the site or that you are invested in.

  • Segment 1 – Jesse Felder, Founder of The Felder Report shares his thoughts on the US markets ability to keep moving higher. We then get into the US/China trade war and what he thinks is really at play.
  • Segment 2 – Josef Schachter, Founder of The Schachter Energy Report outlines the pullback he is expecting for the oil price. We also discuss the upcoming Alberta election and how that could impact Canadian stocks and the overall sector.
  • Segment 3 – Brett Heath, President and CEO of Metalla Royalty and Streaming (TSX.V:MTA & OTCQB:MTAFF) provides some more details on a recent transaction with Alamos Gold. Metalla picked up 18 royalties for US$8.5 million in shares. Click here to read the full news release.
  • Segment 4 – Joe Mazumdar, Editor of Exploration Insights discusses the financing environment for metals companies and shares a couple companies he likes right now.

Exclusive Company Updates This Week


Jesse Felder
Josef Schachter
Brett Heath – Metalla Royalty and Streaming
Joe Mazumdar

Comments:
  1. On April 6, 2019 at 4:51 am,
    Skeeta says:

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

    • On April 6, 2019 at 5:55 am,
      Excelsior says:

      Ditto. Thanks Cory & Big Al and all the KER contributors for all the great insights.

      Ever Upward!

    • On April 6, 2019 at 6:39 am,
      CFS says:

      Until the Great Reset I fully believe we are in a pretend and extend mode of Japan-style money printing.
      Money and liquidity will not be a problem…..until it is. Then comes the The Great Reset.

      I would speculate that will come ,thanks to the BIS , after major market drops WORLDWIDE and involve not only SDRs but also Gold. No longer will any one country be granted the status of having a reserve currency.

  2. On April 6, 2019 at 6:21 am,
    Excelsior says:

    Palladium’s Hot Rally May Be Coming to an End

    Rupert Rowling – March 21, 2019

    “Palladium has been one of the hottest commodities for a while now, but analysts think this year may be the time to book profits.”

    “Prices have rallied to fresh records on tighter supplies of the material mainly used in gasoline vehicle autocatalysts. But analysts surveyed by Bloomberg see the metal ending the year 15 percent lower than now, partly as shortages are priced in and car sales in key markets slow.”

    https://www.bloomberg.com/news/articles/2019-03-22/rally-in-one-of-the-hottest-metals-is-seen-fading-this-year

    • On April 6, 2019 at 6:22 am,
      Excelsior says:

      Palladium price drop temporary, experts say

      Business Report – 1 April 2019

      https://www.iol.co.za/business-report/economy/palladium-price-drop-temporary-experts-say-20410919

      • On April 6, 2019 at 6:26 am,
        Excelsior says:

        Personally I’m more interested in Platinum pricing over Palladium moving forward, as a reversion to the mean in Platinum pricing, in relation to Palladium and Gold pricing, seems quite likely over the next year or two.

        Platinum and Palladium are mostly a forgotten about space to resource investors, where only minimal money flows into it could really move the needle in many of these thinly traded stocks.

        Look what happened to North American Palladium when Pd went on its run.

        http://schrts.co/dWPglesv

        • On April 6, 2019 at 6:28 am,
          Excelsior says:

          Hmm that link didn’t work. Let me try it again showing the move that (PDL) North American Palladium made when Palladium started to make it’s run.

          http://schrts.co/dWPgIesv

          • On April 6, 2019 at 6:34 am,
            Excelsior says:

            One company in the Platinum & Palladium space that I’m acquiring is (PGE) (PGEZF) Group Ten Metals.

            The property Group Ten has next to Stillwater (now owned by $SBGL Sibanye) is the one that really gets my attention:

            https://grouptenmetals.com/projects/stillwater-west-pge-ni-cu/

            Then their other PGM property Kluane is adjacent to (WG) Nickel Creek Platinum, has future upside as well. They have a new Gold property as well, but I haven’t dug in on that asset yet.

          • On April 6, 2019 at 6:35 am,
            Excelsior says:

            Another positive for (PGE) Group Ten Metals is because Greg Johnson is at the helm, just like he is over at $MMG Metallic Mineral.
            (he was also the old boss of Wellgreen platinum that became Nickel Creek)

            Both Group Ten and Metallic Minerals are part of the Metallic Minerals Group of companies.

            https://grouptenmetals.com/news/2018/the-metallic-group-companies-group-ten-metals-and-metallic-minerals-expand-management-teams/

          • On April 6, 2019 at 6:37 am,
            Excelsior says:

            I’ve also got a small position in Jubilee Metals Group (JLP.L) (JUBPF) because I like what they are doing currently with the #Platinum & #Chrome recoveries from tailings, and see it as duplicatable with other tailings projects.

            In addition, their old flagship Tjate is judged to be one of the worlds largest undeveloped blocks of PGMs out there, that most of the market has completely forgotten about. Eventually other companies are going to go shopping for an asset like that.

            https://jubileemetalsgroup.com/projects-operations/

        • On April 6, 2019 at 7:28 am,
          OOTB Jerry says:

          DITTO………….on the ……..more interested in PLATINUM….bottom is and was in …on platinum in the $750 range.
          The ratio on gold to platinum has changed…from 1.54….to 1.44….the turn is in.

        • On April 6, 2019 at 11:16 am,
          Excelsior says:

          Lobo Tiggre – Palladium Investors Must be Cautious

          @PalisadeRadio on 5 Apr 2019

          https://ceo.ca/@palisaderadio/lobo-tiggre-palladium-investors-must-be-cautious

      • On April 6, 2019 at 6:38 am,
        Excelsior says:

        Here is WatchList of companies with either primary or secondary exposure to Platinum and Palladium in their asset mix:

        https://ceo.ca/watchlist?d18441267d55

        • On April 6, 2019 at 6:43 am,
          CFS says:

          Thanks, Ex
          Your input is informative.

          • On April 6, 2019 at 6:46 am,
            Excelsior says:

            Right back at you sir. Cheers CFS!

        • On April 6, 2019 at 6:48 am,
          Excelsior says:

          There are some other interesting companies on the Platinum & Palladium list like Panoramic, Sylvania, Polymet, Noront, Atlasa, and Wallbridge, etc…

    • On April 6, 2019 at 3:59 pm,
      Charles says:

      ++1 😀

  3. On April 6, 2019 at 6:47 am,
    Excelsior says:

    $6 Billion Private Capital Ready To Invest in Mining

    Frik Els | about 18 hours ago

    http://www.mining.com/6-billion-private-capital-ready-invest-mining/

    • On April 6, 2019 at 6:50 am,
      Excelsior says:

      Watch For Money To Start Rotating Into Producing Companies

      Friday 5 April, 2019 – Korelin Economics Report

      “Byron King, Co-Editor of the #Gold Speculator joins me to share his thoughts on the possibility of money shifting away from only #exploration plays and more into #production stories. We look at a couple stocks $KNT $MUX that are producing some good numbers and the fact that the majors will soon be offloading a number of advanced projects.” (also thoughts on #developers like $VIT)

      http://www.kereport.com/2019/04/05/watch-for-money-to-start-rotating-into-production-companies/

    • On April 6, 2019 at 7:23 am,
      Excelsior says:

      $BHP Americas boss says miners must make #Copper ~greener

      Reuters | about 20 hours ago

      “Copper producers must collectively raise their game to improve the metal’s ethical and green credentials as ageing mines require more water and energy to produce the same amount of metal,” one of BHP’s most senior executives said on Friday.

      “In order to fully seize the opportunity to be part of a sustainable future, we need to minimise our material and environmental footprints,” Daniel Malchuk, president of operations at BHP’s Minerals Americas

      http://www.mining.com/web/cru-cesco-bhp-americas-boss-says-miners-must-make-copper-greener/

      • On April 6, 2019 at 7:25 am,
        Excelsior says:

        Mongolia lawmakers seek to rewrite Oyu Tolgoi deal
        Reuters | about 21 hours ago

        “A group of Mongolian legislators has recommended one of the agreements underpinning $RIO.L Rio Tinto’s Oyu Tolgoi #copper mine should be scrapped and another changed, adding to the giant project’s political problems.”

        “..it has been subject to repeated challenges from politicians who argue the spoils of the country’s mining boom are not being evenly shared.”

        http://www.mining.com/web/mongolia-lawmakers-seek-rewrite-oyu-tolgoi-deal/

        (Not a surprise. Just look at what Mongolia did to Khan Resources in the last Uranium cycle.) #JurisdictionRisk

        • On April 6, 2019 at 7:27 am,
          Excelsior says:

          (KRI) Khan Resources was the preeminent Uranium explorer & developer in #Mongolia during the last cycle. They put out an impressive Feasibility Study, but in (2009-2010) the Mongolian government decided to try and nationalize their assets and wanted 51% of the deposit, and eventually would not renew their licenses. It sat dead in the water and stalled until 2015 where they won a judgement from the Mongolian government, but then had challenges collecting.

          Khan Resources v The Government of Mongolia: How to assess compensation for expropriation
          June 4, 2015

          https://www.bclplaw.com/en-US/thought-leadership/khan-resources-v-the-government-of-mongolia-how-to-assess-compensation-for-expropriation.html

          • On April 7, 2019 at 4:39 am,
            Wolfster says:

            A blast from the past…….remember Khan and that fiasco well.🙄

          • On April 7, 2019 at 9:26 am,
            Excelsior says:

            There were folks talking about how great they felt Mongolia was going to be as an emerging jurisdiction over at ceo a year or so back, and I warned them it had already had a checkered past with just this example of Khan.

            The shrugged it off as irrelevant. Now Mongolia is playing the same games with Rio Tinto and by default Turquoise Hill, where they want to grab more of the stake from the companies that invested there and did all the heavy lifting.

            There are so many other jurisdictions I’d choose before Mongolia.

          • On April 7, 2019 at 11:36 am,
            Wolfster says:

            No kidding….with so many great plays in much safer jurisdictions why take that added risk

      • On April 7, 2019 at 5:20 am,
        Wolfster says:

        Yes we need more Excelsiors. 😄

        • On April 7, 2019 at 9:12 am,
          Excelsior says:

          Yes, their insitu method is far less invasive, and I was thinking that same thing when reading over comments from BHP. The only challenge is really producing copy at a large scale, which can’t be done with insitu methods. In addition most other deposits are not porous enough for that mining method to be valuable. I believe Taseko is the only other copper miner trying it.

      • On April 7, 2019 at 12:09 pm,
        Excelsior says:

        Mining giant BHP to cut more than 700 jobs, including some in Singapore

        The Straits Times – 11 Hours ago

        “The world’s biggest miner BHP Group is poised to cut over 700 white-collar jobs, The Australian newspaper reported, adding that the process could start as early as next week.”

        “Last week, BHP chief financial officer Peter Beaven revealed plans of cuts of up to 20 per cent to his 900-strong finance team at an internal town hall meeting, the newspaper said.”

        “The cuts are not targeted at the workforce operating BHP’s global mines but will be part of its restructuring of “functional” sections in an attempt to streamline their operations, The Australian reported.”

        https://www.straitstimes.com/business/companies-markets/mining-giant-bhp-to-cut-more-than-700-jobs-including-some-in-singapore

    • On April 6, 2019 at 7:44 am,
      Excelsior says:

      Commodities’ Best Quarter Since 2016 Is Tough Act to Follow

      By Marvin G Perez and Justina Vasquez – March 29, 2019

      https://www.bloomberg.com/news/articles/2019-03-29/commodities-best-quarter-since-2016-may-be-tough-act-to-follow

  4. On April 6, 2019 at 11:10 am,
    Excelsior says:

    Why a Ruinous Deflation Is Coming

    Rick Ackerman – Thursday, April 4

    https://mailchi.mp/rickackerman/heres-why-stocks-have-been-churning-16977?e=1a3b91aa18

    • On April 6, 2019 at 11:18 am,
      Excelsior says:

      Fed’s QE Unwind Reaches $535 Billion, Balance Sheet Drops to $3.94 Trillion, Old Autopilot Still Engaged

      by Wolf Richter • Apr 4, 2019

      https://wolfstreet.com/2019/04/04/feds-qe-unwind-reaches-535-billion-autopilot-still-on/

    • On April 6, 2019 at 12:27 pm,
      Excelsior says:

      Joe Mazumdar | Expert Analysis of the Mining Sector and the Best Investment Opportunities

      MiningStockEducation – Apr 6, 2019

      2:14 Are we in a resource bull market?
      4:29 Other than copper, what is your favorite EV metal and why?
      11:12 Significance of recent mega-mergers and key takeaways
      14:33 Commentary regarding mid-tier growth-oriented producers
      16:25 What do you look for now in a late-stage development play in light of the coming divestiture of properties as a result of the mega-mergers?
      19:45 What was your biggest winner and loser in the past year?
      23:55 What are your thoughts on artificial intelligence in mineral exploration?
      27:49 Commentary on the USA as a mining jurisdiction
      29:58 Commentary on the Yukon as a mining jurisdiction
      32:53 Stewarding influence as a newsletter writer
      34:57 In what ways might the retail mining investor have an investing advantage over the professionals?

      https://www.youtube.com/watch?v=4JBqinV6LfA

  5. On April 6, 2019 at 12:33 pm,
    Excelsior says:

    Anaconda Intercepts 42.85 G/T Au over 3.8 Meters

    Bob Moriarty – Apr 5, 2019

    “Anaconda seems to release a barn burning set of drill results about once a month. They get ignored every other day. Go figure. . .”

    “From a technical point of view, assays such as that are called BFD results. One day down the road some wise investor will realize that those are really good results.”

    http://www.321gold.com/editorials/moriarty/moriarty040519.html

    • On April 6, 2019 at 1:20 pm,
      Excelsior says:

      Agreed about ANX continuing to put out press release after press release with great drill results or production results beating guidance, and few investors seem to notice. It won’t stay that way and eventually when more analysts and institutional investors come into the space, companies like Anaconda will get properly rerated, and many of the junk exploration hype narrative stocks will go the way of the dodo.

      I’m happy to keep building my Anaconda position over time, and had a good swing trade in early 2017, and trimmed back a bit more on a move higher in early 2018 during the Q1 Run. So far I’ve had a positive experience with them, except for when I bought Maritime Resources thinking they were going to merge with Anaconda, and got thrashed on that trade.

      Currently my position in Anaconda is much smaller than it was 2 years ago, but I’m going to adding a bit more soon as I still believe they have a bright future, and am impressed with how they have continually delivered on their guidance and strategy. Unfortunately there aren’t many mining companies that are reliable and accountable, so it is a rarity when a company and management team delivers consistently.

      Ever Upward!

      • On April 6, 2019 at 4:10 pm,
        Charles says:

        ANX is such a great story. And it keeps getting better and better. Waiting for them to announce their next acquisition. Seems like it should be coming soon since they have recovered from the Maritime debacle.

  6. On April 6, 2019 at 2:03 pm,
    Excelsior says:

    Lithium: The Irreplaceable Element of the Electric Era

    Why is Lithium so important for the production of electric car batteries? And how will Volkswagen secure a sustainable supply chain?

    https://www.volkswagenag.com/en/news/stories/2019/04/lithium-the-irreplaceable-element-of-the-electric-era.html#

    • On April 7, 2019 at 9:50 am,
      Excelsior says:

      (ORE.AX) (ORL) (OROCF) Orocobre Limited – Pre-Feasibility Study to review development options for Cauchari JV

      @nasdaq – 4 Apr 2019

      “Orocobre Limited wishes to advise that Advantage Lithium Corp. (AAL) (AVLIF) as operator of the Cauchari JV has announced it will undertake a Pre-Feasibility Study (PFS) on the Cauchari JV project following the doubling of the mineral resource and successful conversion of Inferred Resources to Measured and Indicated categories (announced on 7 March 2019). Orocobre owns 33.5% of Advantage Lithium’s issued capital and 25% directly in the joint venture.”

      “Given the significant increase in resource size, the PFS will examine various alternatives to unlock additional value compared to the results from the 2018 Preliminary Economic Assessment.”

      https://ceo.ca/@nasdaq/orocobre-limited-pre-feasibility-study-to-review

      • On April 7, 2019 at 9:55 am,
        Excelsior says:

        (ORE.AX) (ORL) (OROCF) Orocobre Limited – Cauchari JORC Resource increases to 4.8 million tonnes Measured + Indicated and 1.5 million tonnes Inferred LCE

        @nasdaq – 6 Mar 2019

        https://www.orocobre.com/wp/?mdocs-file=5484

        • On April 7, 2019 at 11:24 am,
          Excelsior says:

          Appointment of New Chief Executive Officer of $GXY.AX $GALXF Galaxy Resources Ltd

          4 April 2019 #Lithium #Developer #Producer

          Simon Hay said, “I am very pleased to be joining Galaxy Resources at this exciting time in the Company’s evolution. Galaxy has an established and profitable operation at Mt Cattlin and an excellent balance sheet with no debt and cash of almost A$400m providing a strong platform as it enters a major growth phase… to lead the #development of Galaxy’s world class assets at Sal de Vida and James Bay.”

          http://www.gxy.com/media/announcements/444164zwsf5vy7.pdf

      • On April 7, 2019 at 11:33 am,
        Excelsior says:

        (PLS.AX) (PILBF) Pilbara Declares Commercial Production at Pilgangoora

        28 March 2019 – #Lithium

        “Achievement of sustained output and quality of concentrate from Stage 1 (2mtpa) operation supports declaration of commercial production.”

        “Declaration of commercial production follows the achievement of sustained
        spodumene concentrate production during the first six months of operations.”

        http://www.pilbaraminerals.com.au/site/PDF/2369_0/PilbaraDeclaresCommercialProduction

    • On April 7, 2019 at 10:47 am,
      Excelsior says:

      Battery Reality: There’s Nothing Better Than Lithium-Ion Coming Soon

      Falling prices and sunk costs mean that the reigning storage technology has a lasting lead.

      By David R Baker – April 3, 2019

      https://www.bloomberg.com/news/articles/2019-04-03/battery-reality-there-s-nothing-better-than-lithium-ion-coming-soon

  7. On April 6, 2019 at 10:08 pm,
    johnnygeneric says:

    Metalla’s stock is doing very well. Thanks for following them. I bought a while back.

    • On April 7, 2019 at 4:44 am,
      Wolfster says:

      Yes,I unfortunately have only watched it move but never pulled the trigger as of yet…regrets I’ve had a not a few but many.

  8. On April 7, 2019 at 4:56 am,
    Wolfster says:

    Still enjoying the pot stocks….the money started moving to the US plays…..people are starting to realize where the smart money is going……MSO plays with branding…..look at the recent acquisition of Origin,the first billion dollar plus take out…..Slang Worldwide looks like it is starting to gain traction following a consolidation after they went public a few months ago….even big dispensary player planet 13 is showing nice monthly revenues as they begin selling their own brands

  9. On April 7, 2019 at 4:41 pm,
    Mike in Albuquerque says:

    For anybody who would care to respond:

    Which has the greater potential if you are prepared to wait 4 or 5 years – $1,000 US of Goldcorp or $1,000 of Metallica Resources. I know it really is a binary decision but MTAFF has pulled back a bit and I like what I heard from this weekend’s interview. Hope I’m not breaking any rules and of course none of this is investment advice ……

    • On April 7, 2019 at 4:42 pm,
      Mike in Albuquerque says:

      Yikes! I meant to say “it really isn’t a binary decision”!

    • On April 8, 2019 at 7:30 pm,
      Excelsior says:

      I’m not sure about Metallica Resources 🙂 , but personally my preference would be Metalla Resources over Goldcorp for longer term value and growth from streaming and royalties over a bloated juggernaut.

      Regardless, Goldcorp is currently being taken over by Newmont, so it’s going to the dustbin of history anyway….

      ____________________________________________

      Goldcorp’s Ian Telfer rode the gold highs — but exits on a low note

      Gold’s now a game of musical chairs — and Ian Telfer ensured Goldcorp is not left stranded

      Gabriel Friedman – April 8, 2019

      “Earlier this year, Telfer cut a deal to sell Goldcorp for US$10 billion — a 78 per cent hair cut from its peak valuation of US$45 billion back in 2011 when gold prices were soaring.”

      “At the time, Goldcorp had been riding a years-long decline in its share price from above $50 in 2011 down to $13.47 in May 2018, and the worst hadn’t even come.”

      “Last autumn, after reporting disappointing third-quarter results including higher than expected costs, Goldcorp shares went on to drop an additional nearly 20 per cent, to less than $9. Since 2017 it has had negative free cash flows, according to Morningstar Research.”

      “By the beginning of the year, the whole company was being sold to Newmont Mining for US$10 billion, whose chief executive Gary Goldberg would criticize Goldcorp’s strategy as one focused on “volume” rather than profits.”

      “If the Goldcorp sales goes through, it forms a remarkable ending for a company that as recently as 2014 was worth more than either Newmont or Barrick Gold Corp. — currently the two largest gold companies in the world.”

      https://business.financialpost.com/commodities/goldcorps-ian-telfer-rode-the-gold-highs-but-exits-on-a-low-note