With Buffet in gold does it change the outlook from other investors?
John Rubino joins me for a discussion on the new investors that could dive into the gold market after Warren Buffet started buying Barrick. This also ties into the rising inflation narrative.
WELL DT………You were correct…….$2010…….that would be a “10-4 good buddy” keep on truckin…… 🙂
I look at Precious metals slightly differently…….
Consider the average price of gold/silver over the last year, versus the current price.
Many larger companies have been MAKING A PROFIT over the last year. e.g. Barrick had a P/E ratio on past year earnings of about 38.
What do you think its P/E will be next year if the price of gold/silver remain the same ?
There are many gold/silver/metals companies with P/E ratios, based on previous 12 month earnings, between 15 and 30.
A partial list in order of increasing P/E ratio would be for majors:
KL
Kirkland Lake Gold Ltd
PVG
Pretium Res Inc
CMCL
Caledonia Mining Cp
BTG
B2Gold Corp
GPL
Great Panther Mining Ltd
KGC
Kinross Gold Corp
EGO
Eldorado Gold Corp
SSRM
Silver Standard Resources Inc
EQX
Equinox Gold Corp
AUY
Yamana Gold
Palisade radio yesterday:
https://youtu.be/E7wkvww1h6E?t=48
Russian-based intelligence is indicating there may have been an attempt on Trump’s life today:
Here is what is known to have happened.
https://dronedj.com/2020/08/17/drone-nearly-collides-with-air-force-one-jet/
(I do not know the intelligence on which Russia made its assessment.)
Copper looks like it could go parabolic right here.
Big breakout coming (I think).
Dr. Cu augurs well.
I’ve been starting to add more Copper/Gold exposure to my portfolio lately with Regulus Resources, Sun Metals, Triumph Gold, Filo Mining, and McEwen Mining has a nice copper kicker project with Los Azules.
As a polymetallic producer Sierra Metals has a lot of exposure to Copper (about 40%) in addition to Silver, Zinc, Lead, and Gold. There are a few other Silver companies with nice exposure to Copper as well as a co-credit.
Yes the coppers have shown some signs of life….kodiak had a nice move recently too
I’m still looking at adding more down the road, and will consider Kodiak.
Also reviewing Western Copper & Gold, Atico Mining, Excelsior Mining, and more…
Copper is on its first monthly MACD buy signal in 4 years and the weekly chart points higher immediately:
https://stockcharts.com/h-sc/ui?s=%24COPPER&p=W&yr=4&mn=11&dy=0&id=p39253680302&a=605040134
Yep gold has started the week better than I anticipated. Some of that can be attributed to the Buffett news as people will flock enmasse if they view it as a positive. I still wouldnt rule out the chance that this is a relief rally from last weeks cascade fall however if the next 24 hours sees continued robust follow through action then the chances of another wave down decreases.
(PGM) (LRTNF) Pure Gold Resumes Operations at Site
“Pure Gold Mining Inc. is pleased to report that the forest fire which had been active in the area south of the town of Red Lake is now under control and the evacuation order for the municipality of Red Lake has been rescinded. Power and access has been restored to site and the Company is transitioning to a full resumption of mine activities. ”
https://www.puregoldmining.ca/news/puregold-resumes-operations-site
(JAG) (JAGGF) Jaguar Mining Reports Updated Mineral Reserves and Mineral Resources for the Pilar Mine,Brazil as at May 31, 2020
by @accesswire on 18 Aug 2020
“Vern Baker, CEO of Jaguar Mining stated; “While our Pilar mine has steadily increased production to record levels, the Pilar Geology team has spent the last 18 months focused on increasing our understanding of the complex structures that incorporate our orebodies. Through the utilization of good basic geologic efforts – mapping, sampling, drilling, and modeling – the team has once again replaced and added to our reserves and have demonstrated that the grade our orebodies can deliver is higher than prior reserves indicated. We continue to have a solid resource base under our Reserves, and the work has identified some significant opportunities to add ounces in structures higher up in our mine. Pilar has now added drilling capacity to drive reserves down plunge and to delineate new opportunities. With this additional effort, we look forward to expanding our resource base and reserve inventory and to grow our operation through successful drilling and solid mining practices.”
https://ceo.ca/@accesswire/jaguar-mining-reports-updated-mineral-reserves-and
(OIII) (OQMGF) O3 Mining Starts Drilling On Malartic Property
“The Marban project is a very important asset in our multimillion-ounce portfolio,” says President and CEO, Jose Vizquerra. “To begin drilling the extension of Marban at Gold Hawk is a very important milestone, because we will be able to test the high-grade potential at depth and along strike. The positive results at Gold Hawk will positively impact our Marban project.”
https://o3mining.ca/news-media/o3-mining-starts-drilling-at-malartic-property
(USA) (USAS) Americas Gold and Silver Corporation Provides Encouraging Results from Initial Deep Level Drilling from The Galena Complex
(08/17/2020)
> 55-124: 739 g/t silver and 1.6% copper over 4.2 meters
Including: 1,046 g/t silver and 2.3% copper over 2.4 meters
> 55-125: 2,381 g/t silver and 1.7% copper over 1.8 meters
Including: 8,779 g/t silver and 5.9% copper over 0.2 meters
> 52-491: 1,430 g/t silver and 0.9% copper over 1.2 meters
Including: 7,544 g/t silver and 4.7% copper over 0.2 meters
> 52-493: 3,020 g/t silver and 2.3% copper over 1.4 meters
Including: 4,252 g/t silver and 3.2% copper over 1.0 meters
(QMX) (QMXGF) QMX Gold Reports 6.48 g/t Au Over 73.2 Metres Within Current Pit Shell and Demonstrates Significant Depth Potential Intersecting 35.56 g/t Au Over 4.0 M at Depth at Bonnefond
@nasdaq on 18 Aug 2020
https://ceo.ca/@nasdaq/qmx-gold-reports-648-gt-au-over-732-metres-within
^^ Those are pretty impressive results from QMX and it is one of the gold exploration drill plays I took a position in, so looking to see if it may run on this news today.
Ever Upward!
Ex……Dang right those , JMO, are impressive……
Agreed OOTB, and apparently we aren’t the only ones that think so.
QMX is up 62% on the day on the drill news, so it looks like one of my lottery tickets may just pay off. Shazzam!!
Added to QMX. Rebought Anaconda.
David – QMX may have a tiger by the tail here….
As for ANX, I’ve been a fan for a while now and they continue moving things along nicely.
Bought USAS for third time. Should have held in first place.
Anaconda: I held it for a couple of years. Liked that they were producing and their drill results. Nothing happened. Sold and rebought. Sold and rebought. After last sale, I kept watching daily price. Went through the second drill results…that’s it…bought again.
Yeah, USAS is on sale today because investors are mad about the capital raise and that their mines didn’t produce as planned recently, but they had a union blockade in Mexico, and few set backs ramping things up at Relief Canyon. Galena is also still mid-optimization. However, in a few more quarters with these higher metals prices and improved production metrics Americas Silver will be printing money, so investors just need to be patient. I still believe it will surprise the hell out of many analysts and investors when they get their ducks in a row…
(MMG) Metallic Minerals has been rather peppy today.
Might not all be their fault this time Ex but bottom line is they have meet any of their expectations so of course people get tired of more of the same. Just once it would be nice to see them meet or heaven forbid beat their own guidance
That should say have never met.
Wolfster – I agree, but with USAS their assets are fantastic, and I think they’ve likely worked out most of the kinks at this time, and the Covid-19 shutdowns and union blockade just kicked them while they were down the last few months. They’ll have their day in the sun soon enough, but they do need to string along a few quarters of operational success where they hit their guidance. I love a good turn around story, and they are close to having fully turned their ship around and should have more smooth sailing in front of them now.
Metallic: I just got through adding last week, so timing great although I haven’t seen anything to move it higher…except the price of silver. Took some profits to add to Minera as I feel it is a win win between the two of them. Of course, there are so many winners coming from every direction.
When I saw the QMX move this morning, I added quickly and then went back to see why I bought it in the first place. I immediately saw the July 28 drill results which were good also. I believe I will continue to hold.
I bought QMX for their prospective exploration with so many well-endowed geological neighbors, (like Monarch Gold) in Val d’Or Quebec, Canada, on the Abitibi Greenstone Belt. Today they really hit pay-dirt.
As for Metallic Minerals and Minera Alamos I own them both and like them both for much different reasons. MMG has the high grade Silver exploration next to Alexco, and Minera Alamos have a pipeline of 3 Gold development projects and the smaller one moving into production by the beginning of next year.
Collect them all…
(ANX) (ANXGF) Anaconda Mining Continues to Expand The Stog’er Tight Deposit, Intersecting 4.37 G/T Gold Over 15.0 Metres and 3.32 G/T Gold Over 8.0 Metres; Further Expands Drill Program
by @accesswire on 18 Aug 2020
https://ceo.ca/@accesswire/anaconda-mining-continues-to-expand-the-stoger-tight
(IO) (INCAF) Inca One and (EQX) Equinox Agree to Restructure Debt
by @newsfile on 18 Aug 2020
In addition to the amendment of the payment dates for the Note, Equinox has also agreed to extend the payment date for approximately US$0.7 million from August 20, 2021 to August 20, 2023, related to a working capital loan payable as part of the Kori One acquisition.
“Equinox has been very supportive of our growth strategy”, Edward Kelly, President and CEO, commented. “Agreeing to restructure this Note is evidence of their flexibility and belief in our business model allowing Inca One to keep sufficient levels of working capital as required in our space while maintaining their maximum level of ownership in the Company.”
https://ceo.ca/@newsfile/inca-one-and-equinox-agree-to-restructure-debt
(TML) (TSRMD) Treasury Metals Announces Leadership Transition Plan
by @newswire on 17 Aug 2020
“Treasury Metals Inc. today announces a planned leadership change, following the recently completed transaction to acquire the Goldlund Gold project and a priority to accelerate studies into the development phase of an integrated Goliath-Goldlund project. The newly constituted Board of Directors has commenced a formal search for a Chief Executive Officer appropriate to the in-tandem development of the gold projects.”
https://ceo.ca/@newswire/treasury-metals-announces-leadership-transition-plan
(LIO) (LOMLF) Lion One Metals to Retest High Grade Feeder with a Wedge Hole; Receives Gravimetric Assays for High Grade Zone
Aug 17, 2020
Gold futures $2,016
Silver futures $28.42
US Dollar index 92.51
Ladies and Gentleman, place your bets!
Citi On Gold , Raise Their Targets
Tue 18 Aug 2020 – Forex Live: Eamonn Sheridan
– We lift gold short-term targets to ~$2,100/oz. 6-12m targets breaching $2,300/oz seems plausible. The record pace of ETF investor inflows, a weakening US$ and negative real yields are the primary drivers for the push higher.
– GoldUSD has been closer to home a break to a new highs would suggest an extended move initially towards $2,400
https://www.forexlive.com/news/!/citi-on-gold-raise-their-targets-20200818
Ex, We will start to see sheer corporate megalomania, as mergers and acquisitions start taking place with greater frequency than ever before, prompted by the desire to reduce overhead acquisitions and avoid the rigors of cut-throat competition. Kirkland Lake is going into defensive mode, they look like a very probable target to me. I think they should be looking for their own speculative fortunes instead of hunkering down. Now is the time to be an acquirer. DT
Hey DT – Agreed about the M&A surge that will likely see in the PM space soon.
As for Kirkland Lake, I agree that they should continue on the acquisition trail, now that they have Detour under their belt and continue on to Wallbridge next door (but not until I acquire a larger position). In addition, KL has a position in BTR Bonterra that they could easily move on soon, to acquire their mill and all the properties in the Urban-Barry/Windfall Lake area play that Bonterra holds (right next to Osisko Mining’s properties.
Bring on the M&A!
EX……….GLAD TO SEE YA BACK ON THE JOB…… 🙂
Jerry, you can’t learn door knob polishing 101 at College, that is learned on the streets! LOL! DT
DT…..
They always tell the kids, do not lick the door knobs after a frost…. 🙂
Street wisdom…..101….. lol
Ha! True door knob wisdom guys.
Thanks OOTB. 🙂
oil and dollar tending down must be good fundamentally for gold and miners.
Corvus Gold Drills 56.4 Metres @ 1.71 g/t Gold, 55.1 Metres @ 1.40 g/t Gold and 64.9 Metres @ 1.02 g/t Gold, Expands Discoveries at the Mother Lode Deposit, Nevada
2020-08-18 08:35 ET – News Release
VANCOUVER, British Columbia, Aug. 18, 2020 (GLOBE NEWSWIRE) — Corvus Gold Inc. (“Corvus” or the “Company”) – (TSX: KOR, NASDAQ: KOR) announces it has received additional results from its current drill program at the Mother Lode project with a successful expansion of the new Central Intrusive Zone “CIZ”, Upper Oxide and “North” targets.
Klondike Gold Drills 7.57 g/t Au over 10.5 meters at Stander Zone
2020-08-18 08:31 ET – News Release
VANCOUVER, BC / ACCESSWIRE / August 18, 2020 / Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTC PINK:KDKGF) (“Klondike Gold” or the “Company”) is pleased to announce results of Phase 2 and 3 diamond drilling at the Stander Zone and Stander Zone ‘extensions’ (described in News Releases June 1, 2020 and July 7, 2020) on the Company’s wholly owned 586 square kilometer Klondike District Property, Yukon Territory.
Galway Metals drills 12.95 m of 13.4 g/t Au at Clarence
2020-08-18 07:40 ET – News Release
Mr. Robert Hinchcliffe reports
GALWAY METALS INTERSECTS 13.4 G/T AU OVER 12.95 METRES IN NEW DISCOVERY HOLE AT CLARENCE STREAM
QMX Gold drills 73.2 m of 6.48 g/t Au at Bonnefond
2020-08-18 06:40 ET – News Release
Mr. Brad Humphrey reports
QMX GOLD REPORTS 6.48 G/T AU OVER 73.2 METRES WITHIN CURRENT PIT SHELL AND DEMONSTRATES SIGNIFICANT DEPTH POTENTIAL INTERSECTING 35.56 G/T AU OVER 4.0 M AT DEPTH AT BONNEFOND
As mentioned above, those are great exploration results for QMX, and now it is up 65% on the day as a result of the news. Very impressive action.
Amex drills 15.6 m of 32.41 g/t Au at Perron
2020-08-18 06:06 ET – News Release
Dr. Jacques Trottier reports
AMEX DRILLS HIGH GRADE RESULTS IN THE HGZ IN THE EASTERN GOLD ZONE HOLE PEM-20-005 – 32.41 G/T AU OVER 15.60 M HOLE PE-20-179 A 11.71 G/T AU OVER 8.10 M
Amex: Second time they decided to smash the miners on a day that Amex releases drill results. I protest.
Greg Mannarino:
(MAI) (MAIFF) Minera Alamos Announces C$10.0 Million Bought Deal Private Placement of Common Shares
by @nasdaq on 18 Aug 2020
https://ceo.ca/@nasdaq/minera-alamos-announces-c100-million-bought-deal
Great follow-up thoughts from Doug Ramshaw, President of (MAI) Minera Alamos.
His alias is @TheGalvanizer over at ceo.ca:
@TheGalvanizer – “I sacrificed a little on discount to ensure no warrants. Would I have liked to do it higher absolutely. Interestingly the 20 day vwap is aeound 64c and the vwap since we announced CdO (that clearly went over well leading to this offer from NBF) is around 69c. Looking to largely place with new institutional money. My goal is now to ensure anyone who happened to buy their first stock higher are in the money quickly again.”
“Effectively we have doubled our treasury and added a third project for about 5% dilution.”
“That was a hill i would have died on (we have witnessed the benefit of being warrant free since last summer) – no warrants was key. I mean there will be about 500k broker warrants but that’s it.”
Eric Coffin’s comments were about Minera. I failed to say that. Hopefully that was clear.
Yes, I followed that, but thought the Pure Gold analogy was a good one.
I own both, and have enjoyed both moving higher into their Golden Runway.
Added some yesterday. I was reading Eric Coffin’s comments and he is estimating production first of year. It sounds like his expectations are similar to the performance of Pure Gold. Follow the gold price and move upward as production nears. Pure gold hung around for quite awhile under 50 cents US then moved into a steady up move in a relatively short period.
Yes, it is the “Golden Runway” of gains, as Lobo Tigre dubbed that period when a Developer wakes up and makes the run upward toward first pour. He analyzed over 90 miners that went into to production and found that the vast majority of them surged over a double or triple once they kicked off the Golden Runway period.
As a refresher, the Golden Runway phase doesn’t kick off until after the boring sideways trading of the “Orphan Phase” where a developer gets stuck in the muck with metallurgical testing, permitting, and infill drilling. That was the period that Pure Gold was in for about 2-3 years, but they clearly have rocketed higher since then, and rightly so.
I’ve been building positions in Gold & Silver developers coming to the end of their Orphan Stage and moving into their Golden Runways for these precise reasons.
At last some gets the problem with warrants.
I have seen so many companies bankrupted by brokerage shorting over the decades, using warrants to cover.
Yeah, Doug definitely understands that, and MAI was in the penalty box for a while until they finally cleared out their warrant overhang, and have been climbing steadily ever since. Granted, they’ve put out a string of positive news the last 2 years, and are an incredibly well run company with loyal stakeholders, so that also helps.
I’m hoping more mining companies will take notice of their approach to future capital raises without the warrants, and on growing organically from small initial production, that leads to the larger production as the first pit pays for the next one out of revenues. Minera Alamos is a model Gold developer and near-term producer.
The following statement is one of the most remarkable understatements of all time, ” I wish Santa Cruz would get off their Duff and keep their investors informed. Too much “DUFF Beer”, if you ask me. Well Duh! DT
(SGI) (SUPGF) Superior Gold – Corporate Presentation August 2020
Growing Gold Producer in Tier 1 Jurisdiction
Highest-Grade Silver Mine Site Tour Video (Aurcana Silver Corp.) $AUN $AUNFF
MiningStockEducation – 14 Aug 2020 #VIDEO
“Bill Powers visited the world’s highest-grade silver mine (P&P) owned 100% by Aurcana Silver Corp. The site tour occurred on August 5th and 6th. The Revenue-Virginius mine in Ouray, Colorado, USA is fully-permitted and will also be one of the lowest-cost silver producers in the world at only US$8/oz Ag (AISC) after byproduct credits. The exploration potential at this project is immense as COO Brian Briggs states in the video: “There is no other silver mine in the world that probably has our exploration potential.” Aurcana is currently in the final stages of securing a debt facility for the the final capex needed to commence production. The company has announced they intend to start production in Q1 2021.”
(GLD) (NCMBF) GoldON Files NI 43-101 Technical Report on 100% Owned Slate Falls Gold-Silver Property
by @accesswire on 18 Aug 2020
“The 5,656-hectare Slate Falls property is located in the Patricia Mining Division of northwestern Ontario and lies within the southwestern extension of the Meen-Dempster Greenstone Belt between the Red Lake and Pickle Lake gold camps .”
https://ceo.ca/@accesswire/goldon-files-ni-43-101-technical-report-on-100-owned
When will the beating stop? That was the trading philosophy for years. NOW: Why can’t I buy them all? Makes you feel like they have been sitting on drill results until TPTB got their boot off their necks. I want…I want…I want…Then the Wall of Worry starts acting like it is going to fall on my head.
I’m done a pretty good job of trying to buy them all. Haha!
Just kidding, I have a list of companies I want to buy that grows daily. 🙂
I bought back some Brixton today so that I now have 50% of the initial position again.
BBB back-filled the gap higher today, so it seems like a good place to speculate and I’m buying it back for less than I trimmed it at, so we’ll see how it goes. I expect them to be putting out some more exploration news over the next few weeks, so we’ll see how it goes.
BBB Chart showing backtest of gap:
http://cdn.ceo.ca/1fjo73r-Brixton%20Chart%20Gap%20Backtest.JPG
Speaking of B words, I bought back Bayhorse again for fourth or so time. My thinking was they would be motivated to stir things up some since they were waiting for the price of silver to go up. I am in the red again. Does Jamie Dimon’s exwife own Bayhorse?
Yeah I have some Bayhorse as well, but I trimmed some back last week on the 10th since it had moved up higher and I was trimming the fat.
Minaurum been moving lately. Not sure why but overdue for some drill results.
Really a thin crowd……..for gold being up……..hummmm
I think the take down on the miners was orchestrated. First some bogus paper was dropped taking gold and silver down running stops. Then I heard there were some margin calls that could cause some sales also. Tuesday is becoming attack day.
I might start taking Tuesdays off………… Friday also……Monday as well, for a long week end….Wed and Thursday….I need to water the flowers…..Heck, I think I will just stick to phyz……and for get the mad house….. 🙂
Matthew must be out buffalo hunting,……. lol
Or Warren called him in for advice…. 🙂
Gold at 1993.50 US, could be back over $2000 tomorrow, so much for the price staying lower longer than people can imagine. If you want lumber for decks and fences those prices are way up too. Covid shutdowns and bored homeowners getting the honeydew list have cleaned out the lumberyards. DT