The opportunities in gold and uranium stocks
Lobo Tiggre is with me today to share his thoughts on a number of different sectors. We start with his change of tune for the US markets, which continue to run higher. Then it’s over to the precious metals space where we discuss the drivers behind gold and gold stocks. Finally we wrap up with comments on the uranium sector.
Click here to learn more about Lobo’s newsletter – The Independent Speculator.
Good interview today Cory & Lobo. I agree with Lobo’s points on Silver eventually outperforming Gold, which we have started to see over the last few months, and while most Silver companies have co-credits from base metals like Zinc, Lead, and Copper, or dual exposure to both Silver & Gold deposits now, there are still a number of solid choices with enough Silver in the mix to have nice leverage to rising Silver prices.
As for the Uranium discussion towards the end, I agree that as far as the US Nuclear Groups suggestions, they ultimately need to be enacted by Congress, but as Lobo mentioned, the prior producers with mines on standby, like (UUUU) Energy Fuels, (URG) Ur-Energy, and (PEN.AX) Peninsula Energy are still good bets for when things ratchet up to the next level and longer term contracts are once again established.
There are also Uranium developers in the US with a short path to production like (UEC) Uranium Energy Corp, and (AEC) Anfield Energy both with mills and processing centers.
As for the Athabasca basin there are many companies to choose from but the flagship asset is (NXE) Nexgen Energy by a longshot, and it has been responding quite nicely to the U spot price moving up lately. There are a number of commentators that believe, the costs for Cameco to reopen and further develop their McArthur River and Cigar Lake projects would be quite expensive, and that they may be better off just buying NexGen and developing it instead.
(DNN) Denison also has the fastest track to production using their proposed In-situ mining strategy in the sandstone, but that hasn’t really been tested in the Athabasca Basin extensively as most mines were underground mines, plagued with water issue. (FCU) Fission, for example has huge capital costs to do their project because it is under a lake, and then has underground water to contend with.
There are some other interesting exploration plays in the Athabasca like (UEX) UEX Corp, (AL) ALX Uranium, (ISO) Iso Energy, (PTU) Purepoint Uranium, (SYH) Skyharbour Resources, etc…. but their projects are so far off from development and production that it is harder to bet on them in the early part of the unfolding Uranium bull market.
The world is awash in Uranium discoveries, and what will be needed are companies that can supply the new contracts when they start getting negotiated later this year and next. I’m sticking mostly with producers, or advanced developers personally.
‘Rocks beat stocks’ gold is still on its way to $1,900 – Bloomberg Intelligence
Kitco News – Wednesday May 27, 2020
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said that gold is just starting its bull rally and investors shouldn’t get caught up in the short-term price action, “missing the forest for the trees.”
“The next really big step for gold is getting above $1,900; it’s just a question of time,” he said, “I don’t see what it is going to take not to go higher and I can think of a dozen reasons for it to go higher.”
“With the Federal Reserve expected to maintain its extremely loose monetary policy and the global economy nowhere near the road to recovery after being disseminated by the COVID-19 pandemic, gold will remain in a long-term uptrend.”
https://www.reuters.com/article/swiss-trade-gold-idUSL8N2D8311
US imports record amount of gold.
111tons
New Report Suggests the Toronto Real Estate Market is Entering a ‘Slump Phase’
by Toronto Storeys – May 26, 2020
“According to the report, all major real estate markets in British Columbia, Alberta, and Ontario are on a steady decline due to the economic impact of the pandemic shutdown and restriction measures – except for one: Ottawa.”
https://torontostoreys.com/toronto-real-estate-market-slump-phase/
I must admit that I remain a staunch doubter. One must admit that this Bull Market has survived some terrific shocks but I do not believe it is destined for a longer life. The ordinary people are not buying this market. It is the thousands of labor saving machines known as computers and The Fed’s bankroll that are in charge. Prosperity these days is a machine invention. The machines don’t have the slightest knowledge of the nature of the companies on whose fortunes they are buying, they are interested only in the advance once more. It’s called “The New Deal’! LOL! DT
Well, just as long as it is not called the Green New Deal…. 😉
https://maillinks.purdue.edu/t/39656103/989310053/83929609/0/86156/?x=b94ba0a9
If I managed to copy the right link, Purdue innovational technology will dramatically reduce cost of rare earth separation
(UUUU) (EFR) Energy Fuels Engages Constantine Karayannopoulos & Brock O’Kelley to Assist in Developing U.S. Rare Earth Element Commercial & Technical Strategies; CEO to Discuss Rare Earths at Mining Conference Today
May 21, 2020
“Energy Fuels is currently evaluating minor modifications to its operations, complementary to its uranium business, to enable the processing uranium- and thorium-bearing rare earth ores at its fully licensed and operational White Mesa Mill in Utah. These ores are expected to come from third parties, either through ore purchase, tolling, or other arrangements, and Energy Fuels expects to produce a commercially viable rare earth concentrate or concentrates, while also recycling and recovering uranium from these ores. The rare earth concentrates would then be available for commercial sale to third party REE oxide separation and recovery facilities in the U.S. and elsewhere, and/or potentially for further refinement and REE separation and recovery at the Mill.”
That’s a big deal that Constantine Karayannopoulos is involved, because in addition to running Neo Performance Materials, which at one point was swallowed up by Molycorp, and then spun back out when Molycorp folded up shop in bankruptcy, but Constantine came into Molycorp as a brief interim CEO and gave it the only hope it had after it had been decimated by prior management team bungling. He is one of the most well-informed folks in the REE space, and Brock O’Kelley was also involved with Molycorp. These guys teaming up with (UUUU) is big for those that follow the Rare Earths space.
Way off topic but easy enough to ignore if that’s a problem…
Meet bill Gates
https://www.youtube.com/watch?v=8alro6mjcsU
The real tell of the con man…….is about 1:34 mark….mommy’s contact with IBM….
Everyone should listen to this tape………..
Good video on the Billuminati.
I just noticed that USAS jumped 8 or 9 percent after I said it “looks like a good deal right here” this morning. It was below the 20 day MA at the time…
https://stockcharts.com/h-sc/ui?s=USAS&p=D&yr=0&mn=9&dy=0&id=p73447639704
Yeah, most of the miners did a big reversal mid-day and by the afternoon many companies that were pulling back hard in the morning were clawing their way back up higher, some lunging back into gains on the day. There was a lot of buying that came in during the afternoon across the sector, so investors were buying the dip.
It would be nice to see some follow through buying on Thursday and Friday as well for confirmation.
Ever Upward! Starting tomorrow!
Graddhy – Commodities TA+Cycles @graddhybpc (05/27/28)
$SILVER
“Still inside my white dotted lines box/range. Since it has consolidated now for 9 days in this fairly tight range, between these two important levels (+gapped my 17.135) , it is now looking like a bull flag. It does look like it is preparing to take out my 18.50 level.”
Well it looks like most of the Silver and Gold miners are heading ever upward today.
Lots of stocks popping, so thus far it is confirming the reversal in trend yesterday, and the metals are also heading higher.
Fun times!
(IPT) Impact Silver Announces Q1 Financial & Production Results, Earns EBITDA of $0.5 Million on $3.4 Million Revenue
Newsfile Corp. – May 25, 2020
“The Company reported $3.4 million in revenue for the first quarter of 2020 a 15% improvement compared to Q1 2019 at $3.0 million. EBITDA increased by $0.9 million from the comparative period in 2019 and the net loss was $0.09 million compared to a net loss of $0.9 million in Q1 2019.”
“Mine operating earnings before amortization and depletion improved by $0.3 million as cost reductions and margin expansions continue to lift earnings. Operating activities in Q1 2020 generated cash flows of $0.7 million compared to cash flows used in operating activities of $1.0 million in 2019 due to improved financial performance.”
IPT up 7% today. Excited to see where this one may go in 2020.
In Gold We Trust Report – May 27, 2020 Compact Version
The Dawning of a Golden Decade
Ronald-Peter Stöferle & Mark J. Valek
Gold could reach US$2,000 in coming months
Oksana Patron – May 27, 2020
“Joe Foster, VanEck active gold fund portfolio manager and gold strategist, said that gold would likely test US$2,000 over the next 12 months, extending its current rally, as it carried no counterparty risk, its supply was limited, it existed outside of the mainstream financial system, and was universally seen as a store of value.”
“These attributes make it a unique safe-haven investment. Gold is also a portfolio diversifier – because of the low correlation with stocks and bonds, if you add a little bit of gold, or gold stocks to your portfolio, it can give your portfolio better risk adjusted returns over time,” Foster noted.
https://www.moneymanagement.com.au/news/funds-management/gold-could-reach-us2000-coming-months
(BLK.AX) Blackham Resources Ltd – Outstanding drill results confirm Wiluna sulphide strategy
• Results from recent sulphide resource drilling at Essex and Bulletin lodes include:
BULP0025: 14.45m @ 17.16g/t from 18.95m, incl. 7.45m @ 31.22g/t
BULP0026: 12.4m @ 7.93g/t from 31.4m
WURC0835: 12m @ 7.01g/t from 184m, incl. 4m @ 16.59g/t
WURC0846: 6m @ 53.73g/t from 109m, incl. 1m @ 283g/t
WURC0848: 4m @ 12.08g/t from 107m, incl. 2m @ 21.30g/t
WURC0850: 2m @ 10.92g/t from 133m and 2m @ 5.43g/t from 139m
WURC0851: 4m @ 9.73g/t from 128m
WURC0853: 8m @ 11.80g/t from 144m, incl. 4m @ 22.10g/t
Blackham: good drill results once It appears they are AU. They have 100 to 1 reverse split coming up in June. I bought enough shares so I would have some left after the split in order to see which way it goes after that.
I have a small position in Blackham, and feel the reverse split is needed since they are trading at 1-2 pennies as a producer with excellent gold resources and mines. This exploration result just shows they have the goods, but need a complete turnaround. Getting a reasonable sharecount is the first step in that new direction. They’ve also changed some folks and roles around on their team which was much needed.
Looking forward to Blackham 2.0.
(SEA) Seabridge Gold Completes Acquisition of 3 Aces Project in Canada’s Yukon
Newsfile Corp. – May 26, 2020
“Seabridge Gold (TSX: SEA) (NYSE:SA) announced today that it has completed the acquisition of a 100% interest in the 3 Aces gold project in the Yukon, Canada from Golden Predator Mining Corp. for 300,000 Seabridge common shares, potential future cash payments totaling $2.25 million, and continuing royalty participation in the project by Golden Predator.”
The Predator just got ripped by the Raptor (Seabridge) a very successful carnivore. Life in the resource market is eat or you will be eaten, no room for government ideology. DT
Agreed. Seabridge is more like a Developer T-Rex, and just gobbled up the goods from Golden Predator. SEA got a nice meal off that transaction.
One thing is certain, if you are mining in The Yukon you must have a huge resource to make mining profitable. DT
Or you must have road access, power access, and a really high grade & profitable resource like (AXU) Alexco has, and (MMG) Metallic Minerals will likely have.
(SCZ) Santacruz Silver Announces Planned Resumption of Operations at Zimapan Mine; Completes Organizational Changes
13 May 2020
Mr. Carlos Silva, CEO, commented: “We look forward to bringing the Zimapan Mine back to production in a safe and orderly manner.” Mr. Silva continued; “We will maintain the strict measures and initiatives that were put in place at the beginning of the Covid-19 pandemic in order to protect the wellbeing of our employees and communities”.
Mr. Arturo Préstamo, Executive Chairman commented; “With Carlos now as our CEO the Company has completed the reorganization of our Leadership Team.”
https://ceo.ca/@newsfile/santacruz-silver-announces-planned-resumption-of-operations
Come on Santacruz Silver….. time to wake up…. all your friends are ripping higher, and you are sleeping in today…
Pure Gold Mining will not be allowed to reach its ultimate peak, they just have too much potential and not enough size to stem a takeover bid. Too many eyes on this prize. Sooner rather than later is how I see it. DT
If you are a major there is a lot of prestige to be producing in The Red Lake Area. Big companies are like people they want to be seen at the right gatherings. LOL! DT
Agreed DT. It would not surprise me at all to wake up one morning and find out Pure Gold has been taken over by 1 of the big boys, just begging to be in the Red Lake district.
I’d be fine with that….but what kind of premium will it take to get Sprott to and the other big players to agree??? Especially with some of the prices ES bought in at.
A large premium 🙂
Yes, Large enough to make The Fat Lady Sing! DT
Newmont Goldcorp and Anglo Gold Ashanti have 30% share ownership, along with Sprott’s holdings, who knows how many bidders could come in. I can see at least two. DT
I’ll be watching and waiting for that fat lady to sing.
Would appear the market likes golden valleys share consolidation and US listing plan more than I thought of it. No complaints with being less enthusiastic than others about the idea. 😁
+1
Azimut having another good day. Investors must expect them to drill the same holes as last time. 🙂
Maverix Metals – Secondary Offering and Intention to Exercise Warrants by Pan American Silver
@nasdaq on 28 May 2020
“Pan American has notified Maverix of its intention to exercise the Warrants upon closing of the Secondary Offering. Upon exercise, Maverix would receive proceeds of approximately US$15.6 million and upon completion of the Secondary Offering, Pan American would continue to own 26,833,500 common shares of Maverix, representing an approximately 21.0% ownership interest in Maverix, before exercise of the Over-Allotment Option. If the Over-Allotment Option is exercised in full Pan American would own 25,483,500 common shares of Maverix, representing an approximately 19.9% ownership interest in Maverix. ”
https://ceo.ca/@nasdaq/secondary-offering-and-intention-to-exercise-warrants
Trump administration to end Iran deal waivers in a blow to Obama-era pact
John Hudson – May 27, 2020
“The Trump administration is ending sanctions waivers that allow Russian, Chinese and European companies to work on sensitive Iranian nuclear sites, dealing another major blow to the Iran nuclear deal and raising the prospect of covert advances in Tehran’s nuclear program, according to U.S. officials and documents obtained by The Washington Post.”
https://www.washingtonpost.com/national-security/trump-administration-to-end-iran-deal-waivers-in-a-blow-to-obama-era-pact/2020/05/27/3c4ba5f4-a02e-11ea-9d96-c3f7c755fd6e_story.html