Hour 1 – Jesse Felder, Josef Schachter, Joe Mazumdar, and Metalla Royalty
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
- Maple Gold Mines – Updates on Financing, Share Price Moves, and Upcoming Resource
- Cypress Development Corp – Updates On A Strategic Partner and A Comparison Of Advanced Lithium Projects
- Novo Resources – Updating The Beatons Creek Resource and The Progress At Egina and Comet Well
Ditto. Thanks Cory & Big Al and all the KER contributors for all the great insights.
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.
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.”
Palladium price drop temporary, experts say
Business Report – 1 April 2019
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.
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.
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:
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.
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.
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.
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.
Lobo Tiggre – Palladium Investors Must be Cautious
@PalisadeRadio on 5 Apr 2019
Here is WatchList of companies with either primary or secondary exposure to Platinum and Palladium in their asset mix:
Your input is informative.
Right back at you sir. Cheers CFS!
There are some other interesting companies on the Platinum & Palladium list like Panoramic, Sylvania, Polymet, Noront, Atlasa, and Wallbridge, etc…
$6 Billion Private Capital Ready To Invest in Mining
Frik Els | about 18 hours ago
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)
$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
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.”
(Not a surprise. Just look at what Mongolia did to Khan Resources in the last Uranium cycle.) #JurisdictionRisk
(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
A blast from the past…….remember Khan and that fiasco well.🙄
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.
No kidding….with so many great plays in much safer jurisdictions why take that added risk
Yes we need more Excelsiors. 😄
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.
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.”
Commodities’ Best Quarter Since 2016 Is Tough Act to Follow
By Marvin G Perez and Justina Vasquez – March 29, 2019
Why a Ruinous Deflation Is Coming
Rick Ackerman – Thursday, April 4
Fed’s QE Unwind Reaches $535 Billion, Balance Sheet Drops to $3.94 Trillion, Old Autopilot Still Engaged
by Wolf Richter • Apr 4, 2019
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?
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.”
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.
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.
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?
(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.”
(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
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.”
$GXY.AX $GALXF Galaxy Resources Ltd #CorporatePresentation:
(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.”
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
Proactive Investors take a closer look at the Lithium market and where it’s going
01 Apr 2019
“Proactive Investors Senior Broadcast Journalist Steve Darling and Senior Journalist Katie Lewis tackle Lithium on this week’s edition of Heavy Metals.’
Metalla’s stock is doing very well. Thanks for following them. I bought a while back.
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.
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
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 ……
Yikes! I meant to say “it really isn’t a binary decision”!
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.”
Thanks for the weekend show guys as always.