Phil O'Neill - MP1 Captial – Wed 15 May, 2019

Comments on the sale of Atlantic Gold

Phil O’Neill, President of MP1 Capital joins me today to share his thoughts on the news out of Atlantic Gold. The Company has been sold to an Australian miner, St Barbra in an all cash deal for just over C$800million. Outside of simply the sale this deal is very telling of the overall markets in North America vs. Australia for resource companies.

Click here to visit Phil’s site – MP1 Capital.


Comments:
  1. On May 15, 2019 at 10:56 am,
    spanky says:

    $silver’s bollinger bands on the daily chart are the tightest they have been in at least 5 years. This type of low volatility has basically never been good for $silver in the short run. You can almost bet that we are going to get a sharp move lower very very soon. That will move will expand the bollinger bands. Whether that move lower turns out to be a headfake lower will only be known in hindsight, but I am guess it will be a headfake.

    One of the very few time recently where we got a sharp move higher instead of lower out of such tight bands was early June 2018. That upwards move ended up being a massive headfake that lasted about a week, and silver proceeded to plummet $3 over the next 3 months.

    Stomach churning moves are likely incoming over the next few weeks.

    • On May 15, 2019 at 12:07 pm,
      Matthew says:

      The quarterly Bollinger bands are at their narrowest since 2003.
      Let’s see if SLV’s large December gap gets filled.

      • On May 15, 2019 at 12:16 pm,
        spanky says:

        I would think it is absolutely in the cards.

        That being said, if silver truly gets under $14.20 for more than a day and doesn’t proceed to rocket back up in the opposite direction immediately, it will be a very depressing and potentially ominous sign.

        • On May 15, 2019 at 12:19 pm,
          Matthew says:

          Yes, that would be a bad sign but is highly unlikely in my opinion. Such a dip would be very brief.

      • On May 15, 2019 at 12:40 pm,
        spanky says:

        Out of curiosity, what is the value of the lower quarterly BB?

        • On May 15, 2019 at 2:25 pm,
          Matthew says:

          $13.45 which would obviously be a new multi-year low if reached.

    • On May 15, 2019 at 12:17 pm,
      Matthew says:

      In November, silver dipped below its 20 year MA (currently 14.68) for the first time since 2003. Maybe that’s why 2018 brought silver’s highest volume ever. Buying near the 20 year MA should be very appealing to anyone looking to hold physical for years.

      • On May 15, 2019 at 12:23 pm,
        spanky says:

        SLV and SLV:GLD have put in some black candles over the last couple of days. the SLV:GLD daily chart in particular is suggesting silver is due for at least a small pummeling this week or next week.

        If the initial thrust downwards lasts for more than 5 days, it is going to be extremely concerning.

  2. On May 15, 2019 at 11:09 am,
    cfs says:

    I do not know if this indicates the next takeover, but Wallbridge mining has very high insider buying:
    WM on TSX, WLBMF (OTC)

    Filing Date Transaction Date Insider Name Ownership Type Securities Nature of transaction Volume or Value Price
    May 10/19 May 9/19 2176423 Ontario Ltd. Direct Ownership Common Shares 10 – Acquisition in the public market 2,000,000 $0.398
    May 10/19 May 9/19 Sprott, Eric S. Indirect Ownership Common Shares 10 – Acquisition in the public market 2,000,000 $0.398
    May 9/19 May 6/19 2176423 Ontario Ltd. Direct Ownership Common Shares 10 – Acquisition in the public market 30,000 $0.390
    May 9/19 May 6/19 Sprott, Eric S. Indirect Ownership Common Shares 10 – Acquisition in the public market 30,000 $0.390
    May 8/19 May 3/19 2176423 Ontario Ltd. Direct Ownership Common Shares 10 – Acquisition in the public market 178,000 $0.390
    May 8/19 May 3/19 Sprott, Eric S. Indirect Ownership Common Shares 10 – Acquisition in the public market 178,000 $0.390
    May 7/19 May 2/19 2176423 Ontario Ltd. Direct Ownership Common Shares 10 – Acquisition in the public market 50,000 $0.390
    May 7/19 May 2/19 Sprott, Eric S. Indirect Ownership Common Shares 10 – Acquisition in the public market 50,000 $0.3

    Apologies if this table format does not post correctly.

  3. On May 15, 2019 at 11:16 am,
    cfs says:

    I assume the insider buying is because of:

    Metres Including 15.93 G/T Gold Over 11.22 Metres Confirming Significance Of Area 51 Zone Discovery
    CNW Group – Tue Apr 23, 6:30AM CDT

    Alas, skeptical of any Area 51, I do not own shares in WM.

  4. On May 15, 2019 at 12:33 pm,
    JustTruth says:

    Mining is too shitty of a business to be investing in large producers without a ton of upside. The large producers need inventory, and they will be buying up explorers in large numbers before long to replenish reserves.

    Be right, and sit tight. Big money is to be made in speculation in juniors that have ounces in the ground. This will be my last PM cycle, but I’m going to see it through to the boom. Its coming. Just watch Trump inflate away.

  5. On May 15, 2019 at 12:54 pm,
    spanky says:

    Honestly, USD looks primed for a moonshot that could last a while. The entire uptrend since 2018 has produced perfectly a flat weekly MACD. If the MACD breaks out to the upside, the USD could be headed for Uranus. Again, makes perfect sense with the Fed ending QT and rate hikes. Maybe they should restart QE and it will head to 120+ finally.

  6. On May 15, 2019 at 1:57 pm,
    spanky says:

    $gold closed with a rare black candle today. If we rally tomorrow, it shouldn’t be trusted at all as we will be coming right back down to today’s close in time. Honestly, I would prefer tomorrow closes red, just to clear out today’s candle.

    Either way, not a very bullish sign at all. I will always maintain that such candles indicate smart money selling on strength. With gold bare up off the lows, it’s not very auspicious to run into such a candle now.

  7. On May 15, 2019 at 2:42 pm,
    spanky says:

    Black candle today in SIL today too. Absolutely pathetic stuff.

    We are probably going to get a large flush below the November ’18 low, which really isn’t going out on a limb at this point. It literally fell apart in mid April to May. Destroyed in a matter of 3 weeks.

    SIL:SLV ratio is already below the November low. Today also printed a black candle on that chart too. Down she goes, where she stops, nobody knows.

    Does anyone recall me recommending against buying silver stocks vs gold stocks a few months back. This is why. Lower lows and lower highs against just about anything in the world you can name over the last 3 years. They have been in one of the best bear markets out there.

  8. On May 15, 2019 at 2:46 pm,
    spanky says:

    The thing is, the selloff over the last month in silver stocks isn’t some sort of headfake down. It’s been powerful enough and sustained enough that you can virtually guarantee that the bottom is going to be an absolute slog coming out of and there are absolutely no guarantees that it won’t make lower lows. That has been the trend afterall for coming up on 3 years.

    • On May 15, 2019 at 3:22 pm,
      Matthew says:

      The move down has been “sustained” but not very powerful. Maybe it will end with a bang but it has been unimpressive so far.
      If any asset can move up quickly after being pounded, it’s silver. after the 2008 low, it moved up 73% in 4 months.
      http://schrts.co/VmtVDqjF

  9. On May 18, 2019 at 6:47 am,
    Don Hayward says:

    FYI…… re WM Eric Sprott and 2176423 Ontario are one and same. Eric now has almost 25%. This may be known by most of you but I thought I would throw it out there anyway.