Mike Larson - Safe Money Report – Thu 21 Jan, 2021

Here are the markets and sectors that will do the best during the Biden Presidency

Mike Larson, Editor of The Safe Money Report kicks off today by assessing which policies (including monetary, foreign relations, and domestic policies) expected out of the Biden Presidency will have the greatest impact on markets. We then drive down to a number of sectors that should benefit the most. The sectors discussed (not all with a bullish outlook) include base metals, solar, cannabis, gold, oil, and the broad averages.

Click here to follow Mike on Twitter.


Comments:
  1. On January 21, 2021 at 7:34 am,
    CFS says:

    Great Bear drills 34.85 m of 10.01 g/t Au at Dixie
    2021-01-20 07:36 ET – News Release
    Mr. Chris Taylor reports
    GREAT BEAR RELEASES SEVEN ADDITIONAL NEAR-SURFACE DRILL HOLES INCLUDING 10.01 G/T GOLD OVER 34.85 M, AND 15.68 G/T GOLD OVER 11.75 M AT LP FAULT

    • On January 21, 2021 at 9:12 am,
      Excelsior says:

      As a new Great Bear investor, I can finally celebrate these stellar drill results as they are released to the marketplace. Yay!

      • On January 21, 2021 at 9:38 am,
        Excelsior says:

        Great Bear Announces C$37 Million Bought Deal Private Placement of Flow-Through Common Shares

        @newswire on 21 Jan 2021

        https://ceo.ca/@newswire/great-bear-announces-c37-million-bought-deal-private

      • On January 21, 2021 at 11:25 am,
        David says:

        GBR done good. Welcome Ex.

        • On January 21, 2021 at 12:15 pm,
          Excelsior says:

          Glad to have finally found a doorway into the Great Bear club, where I also had funds available. Looking forward to more drilling success and the maiden resource estimate later this year.

          • On January 21, 2021 at 1:27 pm,
            RICHARD/DOC says:

            I missed the opportunity on Great Bear myself. Will now wait for an opportuinty to take a position.

          • On January 21, 2021 at 2:14 pm,
            Excelsior says:

            I had missed it too Doc, but on the recent sell down since mid January in GBR, it seemed like a good idea to jump in yesterday, and this great drilling news today just confirms that was likely a wise decision. Once I get a position going, it is much easier for me to add to it on any weakness once I already have a position started, than to initiate a new position. Over time, Great Bear is still a winner, but I do hope for opportunities to even buy more at lower prices and lower my overall cost basis.

          • On January 21, 2021 at 2:30 pm,
            Excelsior says:

            I used the selldown in March and April of last year to get into a number of stocks I’d missed or sold early initially like Silvercrest, Metalla, Sierra Metals, Vizsla, K92, Discovery Metals, etc… but spent most of the funds last spring on fortifying a few dozen positions that were already in place in my portfolio for the gold, silver, copper, uranium sectors.

            However, I ended up chasing a few explorers that didn’t work out, and I remember thinking, why didn’t I buy Sandstorm or Great Bear when they went on sale? I vowed to watch for them to correct and not miss the next opportunity to accumulate quality into weakness.

            In late December I started a position in (SAND) Sandstorm and have added to it 4 more times in late Dec this month of January. Yesterday I started my Great Bear journey, and today I started my Aurion Resources journey.

            Tomorrow I may buy back a few tax loss sales from Dec that I only kept small tracking positions in, like Triumph, Brixton, New Range, Nighthawk, and Azimut, but those are all in the most speculative exploration side, and so I’m also looking for a few good quality producers that have sold off hard and deserve a rerating (and I’ve already got my fill of McEwen, Superior, Galane, and Galiano that all deserve much higher valuations). Actually Galane has been a big stronger lately, but it is still really underfollowed and misunderstood. Are there any other solid producers that have had their tail ends kicked that look ripe for a rerating that people are liking at current price levels?

  2. On January 21, 2021 at 7:36 am,
    CFS says:

    ighgold drills 11 m of 8.6% Zn at Johnson Tract
    2021-01-21 06:42 ET – News Release
    Mr. Darwin Green reports
    HIGHGOLD EXPANDS RESOURCE POTENTIAL WITH 100-METER DOWN-PLUNGE BASE METAL RICH STEP-OUTS AND NEW FOOTWALL COPPER-SILVER ZONE AT JOHNSON TRACT PROJECT, ALASKA, USA

  3. On January 21, 2021 at 7:40 am,
    CFS says:

    Strikepoint samples up to 3,840 g/t Ag at Porter
    2021-01-21 09:47 ET – News Release
    Mr. Shawn Khunkhun reports
    STRIKEPOINT DISCOVERS NEW VEINS AND EXTENSIONS AND RETURNS UP TO 3,840 G/T SILVER AT THE PAST PRODUCING HIGH GRADE PORTER SILVER PROPERTY
    Strikepoint Gold Inc. has released highly encouraging surface sampling results from the 2020 exploration program at the 100-per-cent-owned Porter silver property, located next to the community of Stewart in British Columbia’s prolific Golden Triangle.

  4. On January 21, 2021 at 7:44 am,
    CFS says:

    Labrador Gold samples 184.68 g/t Au at Kingsway
    2021-01-21 08:17 ET – News Release
    Mr. Roger Moss reports
    LABRADOR GOLD FURTHER CONFIRMS HIGH-GRADE GOLD TARGET AT KINGSWAY

    • On January 22, 2021 at 2:10 am,
      Sach says:

      Those are grab sample results. Their plan, which I agree with, is to use visible gold results (using grab samples) to determine where to quickly do RAB drilling. I will not get excited until I see their RAB drilling results showing good results.

  5. On January 21, 2021 at 7:47 am,
    CFS says:

    Silver Sands drills 33.5 m of 198.51 g/t Ag at Virginia
    2021-01-21 07:16 ET – News Release
    Mr. Keith Anderson reports
    SILVER SANDS REPORTS ENCOURAGING INITIAL DRILL RESULTS AT THE VIRGINIA PROJECT

  6. On January 21, 2021 at 7:50 am,
    CFS says:

    Mexican Gold drills 21 m of 9.82 g/t AuEq at Las Minas
    2021-01-21 10:44 ET – News Release
    Mr. Philip O’Neill reports
    MEXICAN GOLD INTERSECTS 21M OF 9.82 G/T AUEQ AND 52M OF 3.17 G/T AUEQ IN STEP OUT DRILLING AT EL DORADO, LAS MINAS

  7. On January 21, 2021 at 7:54 am,
    CFS says:

    SENILE U.S. President Joe Biden kills Keystone XL on day one. Several producers may be on the hook for contingency payments, including Athabasca Oil.

    • On January 21, 2021 at 9:16 am,
      aghead says:

      Any opinions on oil’s reaction to this (probably figured in price already).
      What could be good oil plays going forward? Long or short oil? Tankers, other pipelines? etc
      Thanks for any opinions

      • On January 21, 2021 at 2:33 pm,
        blazesb says:

        Aghead, Dr.JimJones at ceo.ca has done solid fundamental research on fec/frontera energy corp. He is well worth following.

        • On January 21, 2021 at 3:47 pm,
          Excelsior says:

          Agreed blazesb. Dr Jim Jones is a great researcher of the Junior Miners, and I just posted his latest article on Volcanic Gold down below in this blog. He’s a sharp guy, and takes a balanced approach, so if he’s reviewing a company, I always make time to consider his perspective.

          • On January 21, 2021 at 3:50 pm,
            Excelsior says:

            Just in case it got lost in the shuffle I’ll just repost that here while talking about the good doctor.

            ____________________________

            Doc Jones talks with (VG) Volcanic Gold’s (high-grade gold/silver targets) CEO Simon Ridgway “Drill it or kill it” with $13.6 Million in Working Capital he has aggressive exploration plans

            by @Drjimjones on 21 Jan 2021

            https://ceo.ca/@Drjimjones/doc-jones-talks-with-volcanic-golds-high-grade-goldsilver-targets-ceo-simon-ridgway-drill-it-or-kill-it-with-136-million-in-working-he-has-aggressive-exploration-plans

          • On January 21, 2021 at 3:54 pm,
            Excelsior says:

            I don’t own (VG) Volcanic Gold, but I believe he mentioned (SVM) Silvercorp has a 19.95% stake in them, if I read that correctly, and I have a big Silvercorp position, so have exposure in that sense.

            Silvercorp also won a bid today on a project in China, and they have a big 28% stake in the silver explorer New Pacific Metals (NUAG) down in Bolivia. SVM has their fingers in a lot of different pies at this point, and has a nice growth profile. I wanted to see them do some acquiring with all that cash, and the auction they won, that was announced today was much more for much less than I was expecting, so that is encouraging.

          • On January 21, 2021 at 4:45 pm,
            blazesb says:

            Ex, yes Dr.J…is a killer…analyst. I’m coming to regard him as your ceo.ca counterpart. Like yourself he is essential and generous with his insights.

            As analysts I find the ceo.ca crew sways more to the fundamental side of the research spectrum making it a fine complement the kereport’s technicians.

            You cover both of course but i think you know what i mean.

            Cheers.

          • On January 21, 2021 at 5:25 pm,
            Excelsior says:

            Agreed on all points blazesb. It is nice to get a healthy mix of both fundamental and technical data, and do know what you mean. Ceo.ca is more geared overall to the fundamental analysis, and the technical analysis has been largely shunned over there and is often called voodoo and squiggly lines; where here on the blog fundamentals have occasionally dismissed in favor of just charts, ironically often on editorials about fundamental analysis.

            It’s all good and Dr Jones is a sharp guy, and I’ve followed his comments on a number of different companies over the last few years, and will mull over his critiques or endorsements as they are very well-reasoned.

            Cheers!

  8. On January 21, 2021 at 7:56 am,
    CFS says:

    First Mining Gold has a prefeasibility study for its Springpole project in Northwestern Ontario.
    Sabina Gold and Silver has (finally) updated a six-year-old resource estimate for Back River in Nunavut. The next step will be an update to a 2015 feasibility study.

  9. On January 21, 2021 at 8:01 am,
    David says:

    QMX proposed buyout by Eldorado. 39.5% premium proposed between cash and shares of Eldorado.
    Other than that, the alternating days of PM miners continue. So far today, wiping out yesterdays gains. 6 month channel remains for me.

    • On January 21, 2021 at 8:37 am,
      Excelsior says:

      Yes, that is the big news of the day David, and bittersweet, as I was just considering adding more to my QMX position, and feel that they had so much more room to run this year on their exploration program, and now they’ve been robbed before they fully bloomed by El Dorado. 40% premium is nice, but I saw 400% more premium with their location, recent exploration success, and plans for 2021. In a way it is nice to see M&A, but this got capped way earlier than I wanted to see.

      • On January 21, 2021 at 9:34 am,
        Excelsior says:

        In other M&A news…

        (TGZ) Teranga Shareholders and Optionholders Vote in Favour of the Arrangement Agreement with (EDV) Endeavour

        @nasdaq on 21 Jan 2021

        https://ceo.ca/@nasdaq/teranga-shareholders-and-optionholders-vote-in-favour

        • On January 22, 2021 at 5:11 am,
          Thomas says:

          I think this will be a new major that is created here

      • On January 21, 2021 at 11:30 am,
        David says:

        QMX: I took the over 30% gain this aim and rolled it into an add to Moneta Porcupine. If waited to see if it went through, it would not have added that much and I probably would have sold whatever Eldorado shares I got since it would not been that many. A gain is a gain but the upside without Eldorado probably would have been more. Made some on the Porcupine already.

      • On January 21, 2021 at 11:36 am,
        David says:

        Left a comment concerning QMX which is going through the Editorial Board.

        • On January 21, 2021 at 12:27 pm,
          Excelsior says:

          David sometimes that happens if you didn’t type in your email correctly, or if you put more than one link in the message, or sometimes it happens for no apparent reason.

          What are your thoughts on the merger? Overall I was wowed with 40% premium for what I feel is a fantastic land package in one of the best jurisdictions, great drill results, and a growing resource. I feel a bit robbed by the news…

          Still, it is good to see more M&A in the sector and will get other larger companies and investors wondering (who will be next?)

          • On January 21, 2021 at 12:28 pm,
            Excelsior says:

            oops – I left out a key word. Overall I was NOT wowed with the 40% premium…

          • On January 21, 2021 at 12:30 pm,
            Excelsior says:

            Really, I wouldn’t have been that happy with a 60% premium either, as QMX just picked off early before it bloomed, but it would have been a better offer.

          • On January 21, 2021 at 12:38 pm,
            David says:

            The post actually posted and had subject to review. Them it disappeared. Normally they never post. Anyway…I saw the news about QMX before opening and checked yesterdays closing price and noted that the opening was up 32 or 33%. I computed the Eldorado shares I would get and knew I would sell them upon receipt because of the small #. I sold all QMX and (added to) rolled them into Moneta Porcupine that has been in an uptend since their proposed merger. Those are up a little. If deal falls through later, will see where we are, but for right now, the opening over +30% gives me a chance to compound unless we get another correction since it has been a few days since the last one. I have gotten to the point where I just take what I can get.

          • On January 21, 2021 at 2:06 pm,
            Excelsior says:

            Hey David – thanks for those comments and your strategy. I was torn about what to do, but didn’t really want the El Dorado shares, and considered holding for a better counter-offer, but just wanted to rotate into different names.

            I started a new position in Aurion Resources, after further reviewing some of the points that @LucHaveTen has made about the company. I posted some of his research and a recent interview of his down below. AU seemed like a good new home for the QMX funds.

          • On January 21, 2021 at 2:15 pm,
            David says:

            I agree with getting robbed with QMX but I feel like I have been robbed on just about every mining stock for the last 12 years. JPM doesn’t have 5 felonies and the same CEO in place for nothing.

          • On January 21, 2021 at 2:23 pm,
            David says:

            “Not” wowed…funny, I read it as “not wowed” and didn’t notice you left “not” out until you said something. Anyway…when someone makes an offer, I usually take it as by the time they drag it out for a vote and make the pay out, I could of trued to put the money to use. Now if it is a 1 for 1 share offering or adds shares to something I own, then maybe I will wait. Shares may appreciate during or after the deal closes.

          • On January 21, 2021 at 2:31 pm,
            David says:

            Running way behind as doctors appt today. But…@luctenhave… Eric Sprott mentioned him one day in passing in an interview. Said it was someone he read that had a following on ceo.ca. I check his site every once in awhile snd should check more. Thanks for those posts.

          • On January 21, 2021 at 2:40 pm,
            Excelsior says:

            Yeah, good comments David. I generally do the same thing if I hold a stock being taken over, and sell into the initial move up, rather than wait for 3-6 months to get everything finalized, to put that money to work elsewhere. There are times where Coeur, Hecla, Alamos, First Majestic, Kirkland Lake, Endeavour mining, etc… have taken over companies where I waited to get the big boy shares, but typically got impatient after holding so long for the transaction that I ended up selling them anyway, once in the larger more liquid vehicle. I considered holding on to get Eldorado shares, and then thought… nah… better take the money and redeploy elsewhere. Again, the risk is that QMX receives a better offer, but there is also risk in just sitting stagnant in a position that is tethered to a slower moving senior.

            Yes, LucTenHave is a very sharp individual investor, that is quite a brilliant value investor and stock picker, and has had a number of wins under his belt that has impressed the ceo.ca community, including me. I’ve suggested to him that it would be great to get on the show here, and he thinks maybe in a few months he may be game.

  10. On January 21, 2021 at 9:17 am,
    Excelsior says:

    When Risk No Longer Exists

    by @Goldfinger on 21 Jan 2021

    “Turning to gold and the gold mining sector. Gold is trading $1863 as I type these words. Two years ago, if I had told you gold would be at $1863 on 1/21/2021 you would have probably been happy to hear that if you are a gold investor. If I had told you the same one year ago, you would have probably been equally as pleased. Yet, here we are today and gold investors are the sourest bunch in the entire market.”

    “Comparisons to other assets like Bitcoin have probably made many gold bulls feel left out. The GDX and GDXJ are also basically flat so far in 2021, despite other equity indices rallying aggressively.”

    “Gold bulls just can’t catch a break it seems.”

    “Just as many gold mining investors and gold bulls are selling and moving into Bitcoin or other stocks/indices, they might actually be missing out on one of the best times to be invested in the gold sector. Never before have senior producers been so profitable in their operations, and never before have the long term structural tailwinds for gold been so strong.”

    https://ceo.ca/@goldfinger/when-risk-no-longer-exists

  11. On January 21, 2021 at 9:55 am,
    Excelsior says:

    I closed out my JDST position today, as most of my tentativeness from the end of last week about this week about the miners has dissipated. I wasn’t sure what we were in for on inauguration day, or if the metals were going to pull back swifty this week, but on this mildly down day, while it’s moved back up I exited for a small overall loss, but was glad to have the hedge in place just in case things went off the rails.

    I’m leaving my short Russell 2000 (RWM) and VIX exposure via (VIXY) in place though, just in case we see any more political fireworks or market concerns that send the stock markets tumbling. My retirement account is still exposed to the US markets so I’m more comfortable with an easy to trade hedge in place in these turbulent times…

  12. On January 21, 2021 at 9:57 am,
    cfs says:
  13. On January 21, 2021 at 10:19 am,
    Excelsior says:

    (SVM) Silvercorp Metals set to expand portfolio in China as it wins online auction for Zhonghe silver project

    Giles Gwinnett – Thu 21 Jan 2021

    “Silvercorp told investors that the silver-lead-zinc mineralization at Zhonghe was similar to that found at its SGX mine, one of the six mines that make up the group’s flagship Ying project.”

    “Silvercorp reported that 23 of the holes had hit significant silver grades. Highlight assays included a 1.95m intersection from 513.95m depth, which graded 1,592 grams per ton (g/t) silver, 12.33% lead and 3.45% zinc.”

    “Another hole showed 1.36m, starting from a depth of 283.16 m, grading 1,383 g/t silver, 29.92% lead, and 5.08% zinc.”

    “The company will make a first payment of around US$15.2 million… That represents 20% of the purchase price. The remaining 80% is due only once the exploration right is converted into a mining license and shall be paid annually over the duration of the mining license.”

    https://www.proactiveinvestors.com/companies/news/939124/silvercorp-metals-set-to-expand-portfolio-in-china-as-it-wins-online-auction-for-zhonghe-silver-project-939124.html

  14. On January 21, 2021 at 10:26 am,
    Excelsior says:

    Doc Jones talks with (VG) Volcanic Gold’s (high-grade gold/silver targets) CEO Simon Ridgway “Drill it or kill it” with $13.6 Million in Working Capital he has aggressive exploration plans

    by @Drjimjones on 21 Jan 2021

    https://ceo.ca/@Drjimjones/doc-jones-talks-with-volcanic-golds-high-grade-goldsilver-targets-ceo-simon-ridgway-drill-it-or-kill-it-with-136-million-in-working-he-has-aggressive-exploration-plans

  15. On January 21, 2021 at 10:32 am,
    Excelsior says:

    Interesting research (as usual) from contributor @LucTenHave over at ceo.ca:

    _________________________________________________

    @LucTenHave – “If you invest/speculate in a company that explores for gold or another metal, you don’t want to be diluted out of the stock. But the prospect generator model also has its downsides. There are very few companies that can explore for years and still have a good share structure. It is no coincidence that those companies are often the companies that create value.”

    “I prepared an overview of all Canadian exploration and development companies (gold, silver, copper, silver, etc, but not lithium or rare earths) with the following criteria:”
    – Market cap C$30 – 999 million
    – Maximum number of shares out 100 million

    “By doing that you get a list of 89 companies. Of those 89 companies there are ONLY 18 COMPANIES that did not do a rollback since 2017, or are a new listing since 2017.”

    “Aurion (discovery), Great Bear (discovery), Amex (discovery), Irving (discovery), Vanstar (discovery) are a few names. The complete overview can be found attached. ”

    https://cdn-ceo-ca.s3.amazonaws.com/1g0jg9b-Exploration_Dev_100mO-S_Mcap%24999m.png

    • On January 21, 2021 at 10:41 am,
      Excelsior says:

      Mining Stock Multi-Bagger Success as a Private Investor with Luc Ten Have

      MiningStockEducation – Dec 29, 2020

      Luc ten Have is well-respected mining speculator at CEO.ca where he is publicly recognized as a top contributor. On a prior MSE podcast, CEO.ca founder Tommy Humphreys said of Luc that he is “so good at finding opportunities as a retail investor.” Luc is a private mining investor based in Holland who has close to ten years’ experience speculating in resource stocks. In this interview, Luc discusses how he began investing in mining stocks, key lessons learned along the way as well as his current approach to mining speculation. Luc also shares a few mining stocks he thinks could perform well in 2021.

      0:00 Introduction
      1:03 How did you find your way into mining stock investing?
      3:56 Key to success as a private mining investor
      5:40 Gambling versus speculation
      8:29 How you find new mining stock investments?
      11:30 Portfolio breakdown
      13:36 Open market vs private placement buying
      14:40 Incorporating macro-analysis into investment decisions
      17:01 Navigating the 2013-2015 bear market
      19:33 Exit strategy
      20:46 Commodities you are investing in?
      23:33 Difficulty selling
      28:42 Learning from mistakes in 2020
      30:17 Stocks Luc likes for 2021

      https://youtu.be/dMOXkheEx8Q

  16. On January 21, 2021 at 10:50 am,
    Excelsior says:

    Once-in-a-Lifetime Silver Stock Bull Market says Don Durrett

    MiningStockEducation – Jan 21, 2020

    Professional mining stock investor Don Durrett of GoldStockData.com returns to the show to discuss the current precious metals market, expectations for the U.S economy and share his thoughts on today’s junior mining sector. Don believes we are about to see a once-in-a-lifetime bull market in silver mining stocks. Don also shares insights on how he approaches junior gold and silver stock investing. Don has been investing in mining stocks since the early 1990’s. He is the author of “How to Invest in Gold and Silver: A Complete Guide with a Focus on Mining Stocks” which conveys Don’s well-thought out and tried approach to mining stock investing.

    0:00 Introduction
    1:00 Gold price
    3:00 Silver price
    3:29 Mining stock portfolio hedges now?
    5:28 Economic contraction worries?
    8:33 Lesson learned in 2020?
    10:38 Biggest mining stock gainers in 2020
    13:36 Silver stocks
    15:12 Once-in-a-lifetime silver stock bull market

    https://youtu.be/m-qYvxpsQ8E

  17. On January 21, 2021 at 1:01 pm,
    Excelsior says:

    In his interview yesterday with Rick Rule & Bill Powers, Rick mentioned only sticking with the largest majors for Lithium, and he has been wrong on this 2 different times now. To be clear, I really like Rick’s commentary on Gold & Uranium, and resource investing tips, but his Lithium biases were way off base a few years back and have been way off base the last year or so, as there has been tons of success in the Jr Lithium space.

    Back in 2016 when he joked about Lithium as “scamium” and mentioned the 3 big Majors would supply ALL the production and supply the world needs, and that he wouldn’t touch the Jr companies as there was no need for them and they were marketing fluff. He was way off. The Big 3 back then were SQM, Albamarle, and FMC (now Livent), and they haven’t kept up with supply, couldn’t ramp up as fast as possible, and there have been a half dozen new Jr Producers that did come on the market, and produced excellent gains from late 2015 moving into mid 2017. If people had listened to RR, they’d have missed all those gains and this was discussed quite often on the KER back in that time period, and I laid out which companies would make it to production, and was correct on all of them except Nemaska (who got their trial plant built, and legitimately were on track to become a producer, but then got into a capital crunch and didn’t raise enough money to get is launched and imploded…)

    The point being, there was plenty of room for new Jr Producers, and they were real legitimate companies and not at all scams or just marketing. Here’s a history refresher:

    – Orocobre made it into production next, (after Talison “Greenbushes” had already proved there was room for a new Jr producer and was acquired in 2013 as the first success story). Also the next major in Lithium (Tianqui) showed up to own part of that, and have sense become a whole new player on the scene.
    – Next up was Galaxy Resources getting into production on their hardrock asset, and then developing it’s brine & also clay assets.
    – Then NeoMetals and Mineral Resources Ltd became the next Jr Ltihium producers.
    – Ganfeng Lithium then came on the scene an bought out their shares of that Lithium mine from NeoMetals/Mineral Resources, and has been on a tear since then getting strategic positions in many developing lithium projects, and is yet another huge player
    – Next up was Pilbara Minerals getting into production successfully as yet another Jr Lithium producer
    – Next up was Altura that moved from explorer, to developer, to producer and got nabbed
    – Then Bacanora Lithium was the next Jr to go from explorer, to developer, to producer.
    – There were also big takeovers of Kidman Resources lithium and Lithium X that showed majors were willing to keep acquiring projects.
    – Posco is another big national conglomerate that has gotten more and more involved in the Lithium and battery metals sector the last few years
    – Lithium Americas is up next and their strategic partners are taking it into production with them retaining partial ownership.

    There are other up & coming Li developers as well like Cypress Development, Neo Lithium, Core Lithium, Critical Elements, etc…

    Just look at the moves higher in some of the Jr Lithium stocks lately. It is hardly anything to scoff at sneer at, even though, many are admittedly getting way overbought and inflated at current levels.

    Personally, I sold off big parts of my Orocobre, Galaxy, Lithium Americas, and Pilbara Minerals today, but they have absolutely been great investments for some time now, and it served me well to ignore the dissenting voices from traditional base metals and precious metals investors and go with the trend and the price action.

    • On January 21, 2021 at 1:22 pm,
      Thomas says:
      • On January 21, 2021 at 1:25 pm,
        Excelsior says:

        Great point. Would a scam be able to raise $350 Million on a financing or be going into production with a major. Clearly that is rubbish. Those that have ignored the developments going on in the Lithium sector or scoffed at the quality Jrs have done so at their own peril and loss of opportunity.

        • On January 21, 2021 at 1:33 pm,
          Excelsior says:

          I posted the Line Chart performance of the Jr Lithium stocks below, but here is a bar chart that summarizes their performance since the March 18th, 2020 pandemic crash lows, to present.

          Those that turned their noses up at Lithium stocks missed out on great gains from trends in motion, in the exact same way that those that scoffed at Cannabis, Crypto, DeFi, and Clean Energy stocks have missed out on epic runs.

          _____________________________________

          Lithium Juniors Performance Bar Chart since March 18, 2020 sector lows through present:

          LAC – Lithium Amercias – up 871%
          CYP.V Cypress Development – up 1261%
          GALXF Galaxy Resources – up 435%
          ORL.TO Orocobre – up 231%
          PILBF Pilbara Minerals – up 879%
          NLC.V Neo Lithium – up 684%
          BCN.L Bacanora – up 278%
          CRE.V Critical Elements – up 446%
          POR.V Portofino Resources – up 283%
          DJI.V Dajin Resources – up 360%

          https://cdn-ceo-ca.s3.amazonaws.com/1g0jsc9-Junior%20Lithium%20Companies%20Bar%20Chart%20Since%20March%20Sector%20Low.JPG

    • On January 21, 2021 at 1:23 pm,
      Excelsior says:

      Check out this performance chart coming out of the mid-March sector lows for most asset classes for the Lithium Juniors. The move higher has been stellar, and much more powerful than most of the metals space coming out of that pandemic crash last year through present. That doesn’t mean it will continue at that same pace, and things are getting lofty here, but to sneer at Lithium Jrs or the Battery Metals narrative has been a silly position to take over the last year, just like it was in the last boom period from 2015-2017.

      __________________________________________________

      Lithium Juniors Performance Chart since Mid-March 2020 sector lows through present:

      LAC – Lithium Amercias
      CYP.V Cypress Development
      GALXF Galaxy Resources
      ORL.TO Orocobre
      PILBF Pilbara Minerals
      NLC.V Neo Lithium
      BCN.L Bacanora
      CRE.V Critical Elements
      POR.V Portofino Resources
      DJI.V Dajin Resources

      https://cdn-ceo-ca.s3.amazonaws.com/1g0js1v-Junior%20Lithium%20Companies%20Off%20March%20Sector%20Low.JPG

    • On January 21, 2021 at 3:05 pm,
      Dick Tracy says:

      Hi Ex, I must concur with your assessment of how Rick Rule felt about the lithium sector, I remember him saying quite a while back that he wasn’t interested in lithium companies because the world was awash in lithium. DT

      • On January 21, 2021 at 3:41 pm,
        Excelsior says:

        Hi DT. Yes, I’m a big fan of Rick for his common sense wisdom, his knowledge of Gold, Copper, and Uranium sectors, and have watched every interview or conference lecture I could find with him since 2010. He was one of the early voices I’d see on Kitco, or at Cambridge House, or even here on the KER and I ‘ve learned a great deal over the years from him on do’s and don’ts in resource investing.

        However, that doesn’t mean he’s an expert in every sector, and he missed the mark on Lithium companies during the first wave of developers turning into producers from 2015-2017, and hasn’t ever given the legitimate Lithium Juniors their due for many years now. It makes it worse when he laughed them off as scams and marketing fluff years ago, and still taking jabs at them today. He likely doesn’t follow the Lithium Jrs close enough to realize how many have made it into production or the returns they offered a few years back (5-15 times) or recently (4-10 times).

        My point on this blog and over at ceo.ca back in 2015 & 2016 & 2017 was that there were legitimate Jrs that would develop and become producers, and I named which companies they’d be back then, and nailed all of them except 1, and made fantastic returns in the Li Juniors. It’s the same point I was making last year again, and there has been an absolutely great bull market in the Lithium Juniors he has repeatedly told serious investors to avoid, and it’s a shame because it isn’t like the rare earth or cobalt bubbles of the past, and there were legitimate new producers minted last wave and this wave on the larger battery metals theme.

        The main point was that there absolutely was room for Junior producers in the sector back then, which became quite evident over time. There were also great lithium deposits (that would be economic) that were acquired by the larger companies which offered investors in those small juniors outsized returns.

        We’ve been seeing the exact same thing for the last year or so in the next big wave of Lithium stock gains, and to sneer at them as irrelevant or just flippantly say the world is awash in Lithium is as much a miscalculation, as saying the world is awash in Gold, Silver, Copper, Nickel, or Uranium, or the old cliche’ that Rare Earths aren’t that rare. Sure, that is true, but finding a concentrated economic deposit in any of these commodities is where the challenge is, and the top shelf Lithium Juniors have done just that outperformed many of the Precious Metals and Base Metals companies over the last 10 months.

        There is still room for a handful more smaller producers, and more importantly room for some of the great lithium deposits other development stage companies have explored to be bought and/or JointVentured with the larger players. Also it should be pointed out that even the number of larger players has now doubled, so to have stated just 3 companies would supply all the world’s need a few years back was a large miscalculation.

        The world may be awash in Uranium, but not in economic deposits with companies that have the chemical and special knowledge needed to move them to production. He is correct that there is more pressure on the downstream processing than just finding another brine or pegmatite deposit, but not all them are in risky jurisdictions either. Most are in the Lithium triangle, or in Austalia, Canada, or even in the US in Nevada.

        Anyway, there has been an amazing bull market going on in the Lithium Jrs, and as I listened to that interview yesterday, and then had the experience of pulling profits on big multi-baggers today, it just struck me as odd how there is so little discussion of the Lithium miners on any of the resource boards, and when following those companies on twitter or you tube or reviewing analysts, there is a whole different audience that came in by way of the technology narrative around Electric Vehicles, Tesla, Battery growth, etc…

        It is not a fad, and not just marketing fluff, isn’t slowing down — rather accelerating, and there really are about 2 dozen real companies, doing real work, in the Lithium sector. Sure there are the 80+ other Li companies that are garbage, just like 80-90% of Gold, Silver, Copper, or Uranium companies are garbage, but that shouldn’t be a slight across a whole commodity sector.

      • On January 21, 2021 at 7:48 pm,
        Thomas says:

        I think, Rick probably fell in love with uranium, because he made his 50 bagger in this space.

        I think lithium is like uranium 20 years ago when Rick Rule made a fortune

        • On January 21, 2021 at 9:06 pm,
          Excelsior says:

          Thomas, yes, that probably makes sense, as I believe Rick got that 50 bagger investing in Paladin when it went from pennies as an explorer, to dollars as a producer in the last Uranium cycle. Who know, maybe Paladin can do that again, as it’s uranium mines are currently on care and maintenance and it’s stock price is down to pennies again.

          Personally I’m a huge fan of the Energy Metals, and like both the Uranium and Lithium sectors, but agree with you Thomas, that the Battery sector is really staring to hit it’s stride just like the Uranium was 20 years back. With the continued build-out of new reactors in Asia, the Middle East, and Eastern Europe, and the parallel trend of the small modular reactors, it is looking like Uranium is going to go through it’s second renaissance as well.

          Cheers!

        • On January 21, 2021 at 11:45 pm,
          Thomas says:

          You shouldn’t sell your lithium stocks now. I think, the good ones still go a lot higher.

          Uranium stocks need higher prices. Most producers still make losses. The developers have the problem of high CAPEX. Most uranium mines cost over a billion. Personally I decided for myself not to invest in uranium, because it is a dangerous material and I wouldn‘t have an uranium mine in my neighborhood (also not an uranium power plant).

          • On January 22, 2021 at 12:23 am,
            Excelsior says:

            Thanks for the feedback Thomas, and for sure I’m still a big fan of the Lithium miners as stated above. Having said that, the lithium miners are looking really overbought lately, and so I decided to bank some profits on Thursday, to raise more funds in these very uncertain times.

            I’ve also trimmed back some of the Uranium stocks in my portfolio lately, because they’ve run really hard as well, but the spot prices will need to move higher to really underpin further advances like what we’ve been seeing. It is looking like many U stocks may take a short breather soon, and when they do then I’ll reload for the long game.

            This is why I keep core positions in place in the Uranium stocks, because if spot prices jump suddenly, or a new contracting cycle kicks off through an official news release, then the Uranium stocks can really jolt upwards quickly.

            Not all developers have high capex. There are lower cost Uranium producers that utilize the ISR (In-situ) mining method, and put fairly inexpensive liquid wells, pump a solution through the porous ground to dissolve the Uranium, and then collect the solution to extract the Uranium. This method of setting up an ISR well field is a fraction of the cost of a traditional hard rock mine, (like what Ur-Energy, Uranerz that Energy Fuels took over, or Penisula Energy have done, and what UEC, Denison, and Azarga Uranium are in the process of doing).

            On the larger hard-rock development projects (like Nexgen, Fission, IsoEnergy, etc…) then it will likely take a larger partner company like Cameco, Rio, BHP, or even an Oil company to come in and fund the development of the mine. In a way that just underpins precisely why Uranium prices need to rise to incentivize new supply. It is like Rick Rule has said for years… “Either the price of Uranium goes up to incentivize new mines to come on line and provide supply, or the lights go out.”

            Both Lithium and Uranium are going to see continued building demand, and the Jr companies that continue to locate, explore, develop, and move towards production (often with bigger partners) will continue to have a seat at the table, and will continue to offer fantastic gains to contrarian resource investors that get involved with the quality teams and deposits.

            Ever Upward!

  18. On January 21, 2021 at 7:07 pm,
    Dick Tracy says:

    Simon Ridgway is The Director and major shareholder of Rackla Metals (V.RAK) very low float,(25 million shares) Simon has had this gold property in The Yukon for about ten years but has done very little with it. With a record like his he must know something! LOL! DT

    • On January 21, 2021 at 7:11 pm,
      Excelsior says:

      From Dr Jim Jones piece linked above regarding Volcanic Gold on Simon Ridgway.

      “For those not acquainted with Simon’s successes, here are the Cliff Notes: Simon Ridgway co-founded/Chairman Fortuna Silver Mines Inc. ($1.5 billon Market Cap.) Founder/Chairman Radius Gold (which has a J/V with Pan American Silver Corp. $10 Billion Market Cap.) CEO Volcanic Gold (SilverCorp Metals $2 billion Market Cap. strategic investor holds 19.9% of stock), he’s credited with the original discovery of Escobal Mine which current has over +350 million oz’s silver and is on trend with Volcanic’s upcoming drill targets and he has also found multiple gold/silver deposit.”

      “For a little history on Simon’s incredibly successful multi-decade career have a listen to Resource Insider Podcast interview done in 2018:”

      “An Interview with Simon Ridgway – Focused on Discovering World-Class Precious Metal Deposits”

      https://www.youtube.com/watch?v=CyOp7vEIX98

    • On January 21, 2021 at 7:20 pm,
      Excelsior says:

      Green Park Capital @GreenParkCapitl on Twitter 4:22 PM · Jan 20, 2021

      BREAKOUT ALERT:

      (JAG) (JAGGF) “@jaguarmininginc closed above it’s base resistance line in place for more then 6 years, just like we suggested on Jan 14th! Check out our charts for what we’re expecting next #breakout”

      https://twitter.com/GreenParkCapitl/status/1352048972529954816

      • On January 21, 2021 at 7:31 pm,
        Dick Tracy says:

        Hey Ex, I hope your staying out of trouble, you know what happens when you cross the line, the lady brings out “The Honey Do List’, and you disappear! LOL! DT

        • On January 21, 2021 at 7:33 pm,
          Dick Tracy says:

          I should know I’m always in trouble! LOL! DT

          • On January 21, 2021 at 7:42 pm,
            Dick Tracy says:

            Hi Ex again, thanks for all the information I can hardly keep up with your posts, on another note I hope Eric Sprott is okay and makes it back for the weekly wrap up tomorrow. DT

          • On January 21, 2021 at 9:00 pm,
            Excelsior says:

            Haha! Thank DT, Yes, she was working on that honey do list just this evening.

            Yes, I hope Eric Sprott is OK as well, and I’m sure he’ll be back with Craig soon doing the weekly wraps, and many are looking forward to that as well.

            Cheers!

        • On January 21, 2021 at 8:00 pm,
          Glenfidish says:

          I don’t think I’ve ever seen a board taken hostage or déjà vu like this one lol..

          Certain people have narcissistic approach and it’s a migraine when I come and look and it’s overwhelming. There’s a fine line but it’s to much for me. And I will voice my opinion because such person is exactly that. It is with great regret I’m leaving this board for good.

          Those of you who have come out and appreciated my work for sometime I thank you for joining in on healthy talk and truly appreciating what I do. It is warm welcoming and the fuel that keeps glen going. I’ve been here for many many years and I have gotten to the point that I need new challenges. Many of you fine ker family members will always keep a warm spot in my heart! Matthew is and will forever be the #1 technical charts guru. I have learned a great deal from him and my record for the pass year has been second to none.

          You all know my worth! I will forever me ten eres at the ker for the guy who spoke and gave predictions in real terms and real time. There is no other that is matt. But I put myself out there wrong or right I’m real time and there ain’t many out there doing it. I’ve seen it done it all and seen all you tubers and chartist and the common denominator is they are 90% flakey and not confident in what they do. There is always a sense of doubt. Have you guys heard this before? If a goes to b then c might go to d? Lol..or if b goes to d them c will go to x! This is wrong recipe and not how I personally trade.

          I’ve been very successful the last two years and it reflects big time in my accounts. I’m making money and that’s what it’s all about and my teachings come from Matt and Gary both combined with my own twist. I’m killing it!

          I tried to share things with you guys from my heart but this narcissistic personality said something last week that put a dent in me by calling Matthew a troll!! Lost all the respect in the world for him. He couldn’t hold my jock yet alone matthews charts. There are people who’s Evil or Vernon is professed in there words and talk and you will clearly see it with constant jabs and opinions and jealously. The constant post etc a voice of desperation and need to be heard or self esteem that kills him. These are the losers in life who pretend to be good but have a masks.

          I will remain in contact with Matthew as he is a close friend behind the scenes and to Jerry you are a good guy!!

          I’m gone sorry to the ones who follow me but you can thank the con! Sometimes when you have something that is good and is stepped on some of you can grow strength and fight back if you feel. I know many of you know what I’m talking about.

          Gold is going higher $2399-$2600 is the target! Silver will blow it up!!

          These are buying times not selling times like you have been told from the sheep.

          Goodnght to all 12-13 years on the ker farewell to Cory and all!

          Glen

          • On January 21, 2021 at 8:37 pm,
            Pete says:

            What happened?

          • On January 22, 2021 at 9:58 am,
            Thomas says:

            Maybe we should asked Cory, if we can get an Ignore function in this forum?

          • On January 22, 2021 at 11:03 am,
            Matthew says:

            Maybe we should spare Cory the needless hassle. You must be a Biden voter if your brain doesn’t have it’s own ignore function.

    • On January 22, 2021 at 12:05 am,
      Thomas says:

      Good presentation. A 100k producer in Brazil with a $650 million market cap doesn’t look like a bargain?

      • On January 22, 2021 at 12:33 am,
        Excelsior says:

        Yes, Agreed Thomas. Jaguar Mining has an impressive set up, and really is undervalued for producing 100,000 ounces of Gold per year. They would be valued much higher than $650K, if it wasn’t for a tough turn-around in operations the last few years where they were punished, and the Brazil jurisdiction penalty.

        Look for example at (WDO) Wesdome valued at $1.3 Billion and they similarly produced 90,278 ounces in 2020. However, they get the Canadian premium. Either WDO is overvalued, or JAG is undervalued, or maybe a little of both.

        Jaguar, has done exceptionally well with exploration the last 2 years, and so I’d expect to see that continue, and their resources and mine life keep expanding. Also JAG has a 3rd mine on care and maintenance, that they can bring online if the metals prices stay elevated and they keep cash-flowing this year.

        Another nice perk with Jaguar is that they pay a dividend. Eric Sprott owns about 48% of the company, and it’s his largest Gold position, so that is an encouraging thought. 🙂

        • On January 22, 2021 at 12:50 am,
          Thomas says:

          Wesdome is in a better jurisdiction. I would see both as overvalued.
          I also would prefer a mid tier instead of a 100k producer

          EQX + PG is a 4 billon stock for example for 700k growing to 1.3 million

          • On January 22, 2021 at 1:14 am,
            Excelsior says:

            Yes, to each their own… I like the mid-tier companies from the standpoint of what a dramatic effect (on a percentage basis to their revenues or in bringing down costs) that just 1 new mine can have from either development or through and acquisition. So if a miner with 100,000 ounces at $1200 AISC, can acquire an asset that also produces an addition 100,000 ounces at $800 AISC, then they’ve doubled their output and reduced costs down to $1000 AISC across the enterprise.

            Personally, I usually look at Gold companies producing less than 100,000 ounces per year as small, from 100,000 – 1 million as the mid-tiers, and from 1 million+ as Majors. Some use market caps to decide if they are small or mid-tiers, but those values can be all over the map in bullish or bearish cycles, so I prefer to look at ounces produced. Some may move their cutoff up to 200K or 300K ounces to be a Mid-tier, but that is a lot smaller universe of companies, and I think there is big difference between a multi-mine producer doing 100,000 or 150,000 ounces per year, and a small single asset producer doing 20K or 60K ounce per year, in operational risk, cost efficiencies, and mine life concerns.

            I agree with you though, that Equinox buying Premier is going to move them into the Major status, producing over 1 million ounces per year, and they are nearly doubling their production as well. Ross Beaty is the man…

          • On January 22, 2021 at 1:22 am,
            Excelsior says:

            Thomas – I know you were a fan of Leagold, before Equinox acquired, them and like Equinox even better now that they are taking things to the next level with the Premier acquisition.

            What other gold or silver companies do you own or like enough to own, and feel represent good value at today’s prices?

          • On January 22, 2021 at 6:27 am,
            Thomas says:

            Added some more Equinox

            And bought Leagold 2.0 right on the day of the announcement. I couldn‘t resist. It looks to good, not to join a team of Mining legends 😌

          • On January 22, 2021 at 6:35 am,
            Excelsior says:

            Well played Thomas, and good strategy to bet on the serially successful mining legends.

            Are there any other companies you are liking, outside of Equinox and Leagold?

            > You have a good eye for deep value is why I ask.

          • On January 22, 2021 at 7:09 am,
            Thomas says:

            Bought some Endeavour Mining today. Today is the registration day for the first dividend.
            So actually, you get it $0,48 cheaper than next week -:)
            Dividend is 1,8% at today’s share price

          • On January 22, 2021 at 7:24 am,
            Thomas says:
          • On January 22, 2021 at 8:05 am,
            Excelsior says:

            That is a nice dividend Thomas, but I generally go with Mid-tiers and below and Endeavour is a bit too large and I considered it a Major before they bought Teranga, but now they are a true force to be reckoned with.

            I’m more interested in positioning the companies I think they’ll buy further down the road. For example, I had True Gold back in the day that Endeavour bought, and Gryphon that Teranga bought, and I’m currently in Roxgold, Orezone, Galiano , NewCore, and Sarama in West Africa, with the thought that one of those will be next. If it isn’t Endeavour that buys them, then it could be B2Gold, Resolute, or another larger producer wanting to break into the area.

          • On January 22, 2021 at 8:07 am,
            Excelsior says:

            BTW – Thanks Thomas for the heads up on the EDR dividend though, and I wish you well in the trade.

          • On January 22, 2021 at 9:11 am,
            Thomas says:

            Yeah, my approach is different than yours I guess -:)

            Actually I had the same approach than you, before I came to Endeavour via True Gold -:)
            Lost some money on great projects, because poor management. With Endeavour I learned, what difference good management makes.

            „Poor management can destroy a company with a great asset“

            „Good management can create a great company, even with a poor asset“

            Leagold is a perfect example.

            Los Filos is probably in one of the most difficult areas and Goldcorp had problems with it. They decided to get rid of it. After Leagold took over they turned it to a world class asset that will produce 400.000 oz (I am sure Goldcorp would have kept a 400.000 oz mine). Interestingly, after Equinox took over, the problems returned.

            My advice is, not only look for good assets – first look for great management

          • On January 23, 2021 at 5:45 am,
            Thomas says:

            I think Roxgold alone would be to small for Endeavour. If they could combine it with Mana to create a 300.000 oz operation, it would be interesting

            I think they will make another try on Centamin. Endeavour will become the West African Barrick over time. Sukari would make a lot of sense in this scenario.

          • On January 23, 2021 at 11:44 am,
            Excelsior says:

            Roxgold is working on developing their 2nd mine over the next 2 years, so when they get that up and running, they’ll definitely be on the takeover menu.

            Galiano Gold (GAU) is another West African producer that Endeavour or another major make a run out down the road. I own both Galiano & Roxgold.

            Perseus Mining is another solid West African Producer that could be up for grabs soon.

            I’d submit that Endeavour Mining already is the African Barrick. They were a Major producer doing over 1 million ounces a year, BEFORE they acquire Semafo or Teranga. Now Endeavour is a behoth.

    • On January 22, 2021 at 12:36 am,
      Thomas says:

      There is a monthly report on royalties on seeking alpha

      December Report 2020

      https://seekingalpha.com/article/4397091-precious-metals-royalty-and-streaming-companies-december-report

      • On January 22, 2021 at 12:44 am,
        Excelsior says:

        Thanks Thomas. Yes, I follow Peter over at Seeking Alpha, and he is typically a bit bearish on most of the companies he follows, and most of the royalty companies except Wheaton, Franco, and I think Osisko? He’s mentioned that before to others in the comment sections of previous royalties articles, and can be seen in how he weighted his royalty index. Peter is good at pointing out potential red flags, or at least areas of overvaluation in companies, that may not have been immediately obvious. With that in mind I try to review his analysis with that perspective, similar to a Taylor Dart or Angry Geo, other more bearish fundamental analysts, and it is important to consider the potential flaws, even in popular and widely held companies.

        I like how Peter does small company updates on the royalty companies that have moved the most, in his monthly report, and how he ties together the strength and weakness to their news-flow. It’s a really good snapshot of the royalty space and well done.

      • On January 22, 2021 at 12:59 am,
        Thomas says:

        A monthly report on Royalties is a good idea, I think. Is already difficult, not to loose the overview. Wasn‘t aware that there is one.

        I like the monthly lithium miners and the monthly lithium junior miners report

        https://seekingalpha.com/article/4396089-lithium-miners-news-for-month-of-december-2020

        https://seekingalpha.com/article/4396403-lithium-junior-miner-news-for-month-of-december-2020