Conversations With Money Managers – Mon 23 Sep, 2019

Matt Geiger – A Deep Dive Into The Precious Metals Market

This is the start of a new segment on the KE Report called Conversations With Money Managers. I found when talking to some of my guests, especially larger fund managers, we did not get to dive into topics as thoroughly as we would have liked. This new forma of interviews are much longer but enable us to do a deeper dive into major sectors of interest. I am hoping to have at least one of these conversations every month. Please email me with guests you would like to see featured – Fleck@kereport.com.

In this Conversation With Money Managers I chat with Matt Geiger, Founder of MJG Capital Fund. We focus on the precious metals markets and the investment narrative that he is utilizing for his fund. We balance the opportunities in gold vs silver stocks. Matt even shares with us his most recent investment in the fund. Copper is also discussed in terms of the overall market. We wrap up the discussion with a look into the political developments in Ecuador.

This is over 30 minutes so grab your favorite drink and take some notes on what Matt has to say. Please let me know what you think of this format.

Click here to visit the MJG Capital Fund website.

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Comments:
  1. On September 23, 2019 at 3:41 pm,
    Excelsior says:

    Osisko Gold Royalties To Acquire Barkerville Gold Mines

    by @newswire on 23 Sep 2019

    Osisko Gold Royalties Ltd (OR) is pleased to announce that it has entered into a definitive agreement (the “Arrangement Agreement”) with Barkerville Gold Mines Ltd. (BGM), pursuant to which Osisko has agreed to acquire all of the issued and outstanding common shares of Barkerville that it does not currently own, by way of a plan of arrangement under the Business Corporations Act.”

    “Concurrent to the Arrangement, Osisko also announces the formation of the North Spirit Discovery Group, the next step in the evolution of Osisko’s accelerator business that Osisko pioneered over the last five years, with the goal of privatizing and surfacing value in resource development projects.”

    https://ceo.ca/@newswire/osisko-gold-royalties-to-acquire-barkerville-gold-mines

    • On September 23, 2019 at 3:59 pm,
      Excelsior says:

      I was wondering if Osisko was going to start cannibalizing some of its incubator companies soon, but got to be honest here…. I was hoping it was going to be (FPC) Falco Resources instead of (BGM) Barkerville.

      Both companies have been struggling, for a while, and both need bigger companies to move them forward. (FPC) Falco’s valuation is ridiculously low compared to their peer developers and for the size of their resources, but most of that is that is because they need such a large capex to get Horne 5 back into production, and they’ve done a terrible job of marketing their project to investors.

      As much respect as I have for the Osisko group, it is odd that they just abandoned some of their incubator companies to keep pursuing more and more relationships, instead of getting a win and then moving on.

      Osisko plopped a big chunk of change into (MAI) Minera Alamos, but that team has been doing a bang up job of getting the word out to investors, since the Corex Gold acquisition, and their share price has been responding nicely this year as a result. Still, I’m not sure why Osisko doesn’t get more focused, because they also have Osisko Mining, Osisko Metals, and now O3 Mining that just acquired Alexandria Minerals.

      They need to close a few of the loops on all the projects they already have instead of starting more and more and then leaving their gardens unattended for the weeds to take over. What happened to Barkerville and what has happened to Falco is sad, and stems from a lack of focus.

      I’d love Osisko to buy out FPC and put them into this new North Spirit Discovery Group and give me an escape hatch to put my money that has been trapped in Falco to work in projects that actually are doing something.

      • On September 23, 2019 at 4:02 pm,
        Excelsior says:

        (FPC) Falco Provides Horne 5 Project Development Update

        by @nasdaq on 19 Aug 2019

        https://ceo.ca/@nasdaq/falco-provides-horne5-project-development-update

        • On September 23, 2019 at 4:04 pm,
          Excelsior says:

          In a nutshell, they’ve been working forever on permitting, and are continually looking over their project for a way to make it work with less capital, but most just perpetually getting ready to get ready….. Let’s get the ball moving already, or bring in a partner, or ask Papa Osisko to buy you out and put you out of your misery already.

      • On September 23, 2019 at 4:12 pm,
        Excelsior says:

        Speaking of Osisko Mining, that particular spinout has actually been success at Windfall Lake, and they’ve done a crapload of drilling and have a good resource, but I’ve never understood why they opted to take out Beaufield instead of Bonterra or Metanor, and feel they got the lessor deal there. That makes me question their strategy again.

        That is fine because after Osisko moved on Beaufield, it triggered Bonterra to raise the game and BTR bought out MTO Metanor, consolidated the Eric Sprott and Kirkland Lake money into a solid small producer, with huge exploration and development upside, AND they got the mill.

        Whoever controlls the Mill controlls the District.

        I see Kirkland Lake moving on Bonterra (with Metanors assets inside it) and dominating and then eventually taking out Osiko Mining further down the road, and Osisko Gold Royalties just retaining a big NSR on Windfall Lake.

        That won’t hurt my feelings as a Bonterra shareholder, and if Kirkland Lake takes out Bonterra, then I’ll take that win and rotate it into Osisko Mining for part 2.

  2. On September 23, 2019 at 5:22 pm,
    Bryan Morrow says:

    Really like this longer form discussion Cory. Good idea.

    • On September 23, 2019 at 11:06 pm,
      Excelsior says:

      +1 Agreed. Good interview Cory & Matt.

      Mr Geiger always has excellent macro analysis, and I’ve enjoyed his interviews here at the KER and a number of his prior interviews on Palisade Radio.

  3. On September 23, 2019 at 5:30 pm,
    OOTB Jerry says:
    • On September 23, 2019 at 5:32 pm,
      OOTB Jerry says:

      I think Irish, stole the john……:)

      • On September 23, 2019 at 11:09 pm,
        Excelsior says:

        Haha! – Yes, when I hear the news about the Golden John being ganked, I immediately knew Irish T was on the case….. πŸ™‚

        Let’s save that video for when we get to the top of the Gold bull market in a few years, to signal to investor it is time to take their profits before they get flushed. (lol)

        • On September 23, 2019 at 11:10 pm,
          Excelsior says:

          hear = heard

  4. On September 23, 2019 at 11:13 pm,
    Excelsior says:

    SilverWatchdog – “Some heavyweight Chinese traders are bidding up silver. Volume in Shanghai has exploded this year.”

    “It wouldn’t be hard for some Chinese multi-billionaire to corner the silver market with futures — like the Hunt Brothers did.” ~ SilverWatchdog on Twitter

    https://twitter.com/Silver_Watchdog/status/1176360030439972864

  5. On September 23, 2019 at 11:15 pm,
    Excelsior says:

    Beijing needs to prepare for emergence and development of a new global monetary system

    Global Times Published: 2019/9/22

    “After experiencing unprecedented monetary easing, asset prices have already risen to a very dangerous level. Some believe that China’s increase in its gold reserves and the rising ratio of gold reserves to its foreign exchange reserves represents its efforts to diversify international reserve assets. Compared with the international average, China’s proportion of gold in international reserve assets is relatively low. As of the end of March, the global average was 13.5 percent, while China’s was only 2.5 percent. Therefore, China has reason to increase its gold holdings.”

    “However, from the perspective of the world financial system and geo-economic evolution, asset diversification may only be part of the cause behind the pursuit of gold by global central banks. In fact, as the US tends to be conservative and the dollar is increasingly “politicized,” many countries have considered “de-dollarization” for the global monetary system. Mark Carney, governor of the Bank of England, recently said that the world’s reliance on the US dollar “won’t hold” and needs to be replaced by a new international monetary and financial system based on many more global currencies.”

    “But could the change in the dollar and the pursuit of gold mean that the international monetary system will return to the “gold standard” system? ”

    http://www.globaltimes.cn/content/1165161.shtml

    • On September 24, 2019 at 12:03 am,
      Excelsior says:

      “Something must be going up in money markets – and it’s not only in #reposqueeze what couldn’t have come up at a worst time for Fed’s Powell. It makes the claim of “everything’s fine” a lot harder for central bankers who obviously don’t understand the entire market developments.”

      “Primary dealers are inexplicably hoarding safe-haven assets. They are forced to buy more treasuries and in holding them, they have less liquidity because they have trouble to sell them. There is a progressively worsening situation!”

      https://www.macrovoices.com/podcasts-collection/macrovoices-all-stars-podcasts/704-all-stars-60-jeff-snider-deep-dive-on-the-repo-blowup

      • On September 24, 2019 at 12:59 am,
        Excelsior says:

        Ian Ball: Monetary Policy Will Be The Main Driver For A Higher Gold Price

        #PalisadeRadio – (09/24/2019) #AudioInterview

        “Ian discusses his previous experience working with Rob McEwen at Goldcorp and then McEwen Mining. His main take-away from that experience is to be open and willing to question your underlying assumptions that drive the business. Alternative ideas may be out of your comfort zone, but they often better.”

        0:40 – Ian’s early career with Rob McEwen
        3:00 – Valuations with the juniors.
        6:00 – Technicals and the gold price.
        8:30 – Favorite books and authors.
        10:15 – Efficiency in mining operations.

        β€’ Question your underlying assumptions.
        β€’ Junior mining remains a tricky business.
        β€’ Fed policies will be the primary driver for gold.

        https://palisaderadio.com/ian-ball-monetary-policy-will-be-the-main-driver-for-a-higher-gold-price/

  6. On September 23, 2019 at 11:16 pm,
    Matthew says:

    Michael Oliver gets it. He said there was no downside here (for gold) on the 18th and understands the problem with making bets based on the COTs. Those that do so are missing the boat.
    He also understands what really drives gold.
    https://www.youtube.com/watch?v=N_7cMySTOLw

  7. On September 23, 2019 at 11:34 pm,
    Excelsior says:

    Rebuilding America’s Domestic Uranium Industry

    Stephen MooreStephen Moore – Sep 24, 2019

    “In Western states such as Arizona, Utah, Colorado, New Mexico, Wyoming, Nebraska and Texas, the United States has massive domestic uranium resources and reserves. But incredibly, more than 90% of U.S. uranium requirements are now imported.”

    “A presidential memorandum issued in July ordered the formation of a Cabinet-level working group to find acceptable solutions to the U.S. uranium mining dilemma — what President Trump referred to as a “national security concern.”

    https://townhall.com/columnists/stephenmoore/2019/09/24/rebuilding-americas-domestic-uranium-industry-n2553531

    • On September 23, 2019 at 11:38 pm,
      Excelsior says:

      Three Mile Island retired after 45 years

      23 September 2019

      “Three Mile Island (TMI) unit 1 has been shut down for economic reasons after over 45 years of generation. As the Pennsylvania plant closed, hundreds of people attended a rally to demand action by the state legislature and governor to prevent the premature retirement of the Beaver Valley nuclear plant in 2021.”

      http://www.world-nuclear-news.org/Articles/Three-Mile-Island-retires-after-45-years

      • On September 23, 2019 at 11:39 pm,
        Excelsior says:

        ^^ another excerpt from the article above:

        “When nuclear plants shut down, our state loses a zero-emission source of electricity and diversity on the energy grid. Our state loses reliable and affordable electricity that powers small and big businesses alike. And our state loses the ability to keep our air clean for Pennsylvanians of all generations.”

        Nuclear Powers Pennsylvania Co-Chair Martin Williams said Pennsylvanians “should be alarmed” by the prospect of further nuclear power plant closures.

        “We can learn from other states, such as Illinois, New York, Ohio, New Jersey and Connecticut, who have adopted zero-emission credit programmes which have enabled them to keep nuclear plants operating to protect the environment and save thousands of jobs,” he said.

        • On September 23, 2019 at 11:44 pm,
          Excelsior says:

          Duke To Seek Second Licence Renewals Fleetwide

          20 September 2019

          “Duke Energy has announced it will seek second 20-year renewals of the operating licences for all of its nuclear reactors, starting with the three-unit Oconee plant for which it expects to submit a renewal application in 2021. The company says the units are key to it achieving its carbon emissions goals.”

          http://www.world-nuclear-news.org/Articles/Duke-Energy-to-seek-fleetwide-second-licence-renew

          • On September 23, 2019 at 11:46 pm,
            Excelsior says:

            Korea, Saudi Arabia to cooperate on SMART deployment

            20 September 2019

            “South Korea and Saudi Arabia have agreed to collaborate on the commercialisation of the Korean-designed SMART small modular reactor. Under the agreement, they will work together to license and construct the first such unit in Saudi Arabia.”

            http://www.world-nuclear-news.org/Articles/Korea,-Saudi-Arabia-to-cooperate-on-SMART-deployme

          • On September 23, 2019 at 11:52 pm,
            Excelsior says:

            New Nuclear Countries Face Integrated Challenges

            19 September 2019

            Rising pointed to the reference scenario of World Nuclear Association’s Nuclear Fuel Report, published earlier this month, according to which 11 countries are projected to start up nuclear power plants in the next 20 years including newcomer countries UAE, Kenya, Poland, Indonesia, Bangladesh and Uzbekistan. “Compared with that – only one new country started up its first nuclear power plant in the last 20 years,” she said.

            “For nuclear to reach its potential, Rising said it is essential that emerging and expanding nuclear countries share their experiences in developing infrastructure, professional staff and finance, and mastering the licensing and communication challenges in developing a nuclear programme.”

            http://www.world-nuclear-news.org/Articles/New-nuclear-countries-face-integrated-challenges

    • On September 24, 2019 at 12:00 am,
      Excelsior says:

      Brandon Munro: The Data Shows Us That #Uranium Has To Head Much Higher

      #PalisadeRadio – (09/19/2019) #AudioInterview

      “Brandon discusses the improving tone of the uranium industry that he is seeing while attending the London World Nuclear Association Symposium.”

      0:40 – WNA Symposium Conference.
      1:50 – Trump and China
      3:30 – Investor misconceptions
      7:00 – $35-$40 Uranium could surprise
      9:00 – New types of reactors.
      13:30 – What will the bull market look like.
      21:30 – #Nuclear Fuel Report

      https://palisaderadio.com/brandon-munro-the-data-shows-us-that-uranium-has-to-head-much-higher/

  8. On September 24, 2019 at 6:41 am,
    james says:

    Good stuff Gory ! long time views is the why to go tanks !