The bullishness continues for US markets, but is it justified?
There’s no denying that the US markets have been on quite the run to close out 2019. Whether we attribute it tot he Fed injecting capital into the repo market or some better trade comments a lot of money that was on the sidelines is now in the equity markets.
Chris Temple joins me for a discussion focused on the overall health of the markets while also touching on volatility as the VIX is below 12 today. As much as the markets should have a very natural pullback optimism can carry these things way further than expected.
Click here to visit Chris’s site and keep up to date on what he is writing.
Collin Kettell @CollinKettell
“Two billionaires – Ross Beaty and @Frank_Giustra – combine to create a leading gold producer. @LeagoldMining and @EquinoxGoldCorp announce merger this morning. With all this M&A, #juniormining stocks are about to go go go!!!”
https://twitter.com/CollinKettell/status/1206548850854498304
Ross Beaty and Frank Giustra were both locked and loaded a long time ago. Follow the money on Canadian Insider. DT
I was locked and loaded along time ago as well and have had shares in EQX since they rolled up Trek Mining, Newcastle, and Anfield Gold into a mining burrito. Then they picked off a mine from distressed New Gold, and now Equinox scores again with picking off Leagold that has a much larger production profile than Equinox does.
This company was destined to become a juggernaut from it’s inception, and they shareholders are a who’s who in the mining sector. Cheers!
After this transaction, Equinox will be getting almost too large for my tastes, but they’ll have so much darn Gold production moving into 2020, that I may ride it up as a more conservative mining position on rising metals prices, as my portfolio has plenty of higher risk companies to capture the crazy moves.
“A joint announcement outlining the merger said gold production is projected at 700,000 ounces in 2020, then increasing to 1 million ounces in 2021 and beyond, based on analyst consensus estimates. The company will have six operating mines in the U.S., Mexico and Brazil.”
https://s3-us-west-2.amazonaws.com/cdn.ceo.ca/1evf9vp-EV.png
By 2021 they’ll be a Major producer doing over 1 million ounces per year, and so that is when I’ll sell into their full valuation.
Ex, The management at Equinox is really aggressive if you are right, you just might see them keep acquiring like Pac Man. That’s what makes everything so interesting. DT
I have confidence in Ross Beaty & team to make Pac Man work. So far they’ve delivered on each piece of guidance and executed perfectly (very rare for mining companies).
Ross mentioned in a few different interviews over the last 2 years this would likely be the last major Gold company he builds, and I believe he’ll go out with a huge win further securing him as one of the key mining legends of our time.
I like EQX from a technical as well as a fundamental tandpoint and have had a large position in it for awhile. I believe this company has just started its’ move and won’t be trading in and out but will hold for the long term.
(TML) (TSRMF) Treasury Metals Commences 15,000 m Drilling Campaign at the Goliath Gold Project
by @newswire on 16 Dec 2019
“Results from the program will start in January 2020.”
https://ceo.ca/@newswire/treasury-metals-commences-15000-m-drilling-campaign
(GBR) (GTBDF) Great Bear Drills New “Gap” Zone: 16.80 g/t Gold Over 4.15 m and 1.25 g/t Gold Over 45.50 m; Auro Zone Drilling Intersects 241.88 g/t Gold Over 1.20 m Within 48.67 g/t Gold Over 8.70 m
by @newswire on 16 Dec 2019
https://ceo.ca/@newswire/great-bear-drills-new-gap-zone-1680-gt-gold-over
(PGM) (LRTNF) Pure Gold Drilling Intersects High Grade Gold Mineralization at 8 Zone Gap and Wedge
16 Dec 2019
167.0 g/t gold over 1.1 metres from drill hole PG19-693;
51.5 g/t gold over 1.5 metres from drill hole PG19-713;
9.0 g/t gold over 1.0 metre from drill hole PG19-691;
8.7 g/t gold over 1.7 metres from drill hole PG19-700;
6.9 g/t gold over 2.0 metres from drill hole PG19-696.
Between the stellar exploration results from both Great Bear & Pure Gold (neighbors), and Evolution’s recent acquisition of the Red Lake Mining complex from Nemont, it seems the whole Red Lake area play is on fire lately. Finally a little excitement in the space.
Here is a nice map of the Red Lake area play (also: it shows Goldcorp on the Map because it was created before Newmont acquired Goldcorp).
https://investingnews.com/wp-content/uploads/GBR_Red_Lake_Property_Map_03Sep17.jpg
Even Premier Gold is getting into the mix today (also in the Red Lake area play):
(PG) (PIRGF)Premier to Follow-Up High Grade Results in Red Lake
by @newswire on 16 Dec 2019
https://ceo.ca/@newswire/premier-to-follow-up-high-grade-results-in-red-lake
Interesting write up on the Red Lake area play in Resource World Magazine (pages 40-43)
http://resourceworld.uberflip.com/i/1190748-resource-world-dec-jan-2020-vol-18-issue-1/41?m4=
That R2 Pivot at 1476.40 continues to be a problem for gold:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=5&mn=11&dy=0&id=p84162692647&a=699861636
Country With World’s Largest Uranium Reserves Finally Considers Nuclear Energy
“Australia’s Parliament presented this week a report that outlines a series of measures to take into consideration if the country wants to move forward with the development of nuclear energy.”
“The report, which arose from a legislative committee’s inquiry into the matter, states that it is important for the island nation to consider the prospect of nuclear technology as part of its future energy mix and that to do so, relevant institutions would have to undertake a body of work to progress the understanding of nuclear technology in the Australian context.”
Nice capital raise from one of the most solid Copper development plays in the sector:
(REG) (RGLSF) Regulus Resources Inc. Announces C$10 Million Financing
@nasdaq on 16 Dec 2019
“The net proceeds of the offering will be used to fund exploration and development activities at the Company’s AntaKori project, for working capital, and general corporate purposes.”
https://ceo.ca/@nasdaq/regulus-resources-inc-announces-c10-million-financing
The stock market boom is only one of a series of spectacular booms. We are having a building boom in Toronto that makes New York in the 1920’s look tepid. Prices and buildings are going up, up, and up. Toronto’s building boom is so big that it effects our national economy. Easy money is propelling a hysteria that can only end badly. DT