Exclusive Comments from Marc Chandler – Fri 19 Feb, 2021

The inflation narrative and move toward growth can also been seen in the currency market

Marc Chandler, Managing Partner at Bannockburn Global ForEx joins me for a look into the currency markets to compare how current trends are following the stock market. Growth continues to be the focus but the rising inflation narrative is also playing a key roll. We also relate the trends to commodities, some of which, copper, continues to breakout.

Click here to visit Marc’s blog – Marc to Market.


Comments:
  1. On February 19, 2021 at 12:02 pm,
    irishtony says:

    For those of you on the site who like copper….Some info.
    https://www.zerohedge.com/markets/goldman-warns-historic-shortage-copper-explodes-higher

    • On February 19, 2021 at 12:51 pm,
      Excelsior says:

      Thanks for that post IrishT.

      Yes, Dr Copper has had quite a run over the last year, and now has a $4 handle again, currently at $4.06. This continued move higher is going to further spike the miners of the red metal.

      https://www.investing.com/commodities/copper

      • On February 19, 2021 at 12:52 pm,
        Excelsior says:

        Take a look at the very solid uptrend in place on the chart of (COPX)Copper miners ETF.
        (It’s a thing of beauty…)

        https://schrts.co/YtFDEmek

        • On February 19, 2021 at 1:05 pm,
          Excelsior says:

          I’ve been steadily building up my Copper mining exposure over the last year, with (SMTS) Sierra Metals, (WRN) Wester Copper & Gold, (FILO Filo Mining, (TIG) Triumph Gold, (KDK) Kodiak Copper, (GCX) Granite Creek Copper, (ATY) Atico Mining, and today I added starter positions in (MIN) Excelsior and (DCMC) Dore Copper.

          • On February 19, 2021 at 1:35 pm,
            Excelsior says:

            Wolfster, if you see this, not only did I pick up some MIN Excelsior today, but also some UCU Ucore (since it had a hefty pullback today). After watching them both for many years… I’m in!

          • On February 19, 2021 at 5:37 pm,
            Dragonite says:

            I am glad to say that I purchased some XBM.TO since earlier last year at around $10 Canadian. Now the initial purchase is up nearly 70%+. I have been kept adding and now holding around 1000 units. I may add more till I feel enough.

            Excelsior, you are uranium expert. I sold my EFR (Uranium Fuels) in Toronto exchange today which I purchased 1.5 years ago. I pulled around 150% profit. I heard that Rick Rule does not feel it is worth investing. What do you feel about it? I want to put the money into NexGen which Rick Rule speaks highly of. I feel the current surge in the price is not sustainable and a pull back is coming. Then I can put the money to work.

            Thank you.

          • On February 19, 2021 at 5:43 pm,
            Dragonite says:

            I may also add some RIO and BHP if price comes down. They get so expensive now. But the base metal bull market seems here to stay. One contributing factor is that China has banned foreign trash into the country. It used to be one major source of metals which are required by China’s manufacturers. Now they have to purchase from international market and the money is not a problem for China.

          • On February 19, 2021 at 7:38 pm,
            Excelsior says:

            Hi Dragonite. I’ve been following Energy Fuels closely since the last Uranium cycle that ended in 2011, but I got more serious about bulking up the position back in late 2016 from before and during the Uranium move down to around $17-$18 the first leg of it’s double bottom. Since that time, I’ve traded in, and out of it, but mostly around a core position in place about 50 times.

            Yes, Energy Fuels has been one of my favorite Uranium stocks to ride the Uranium bull market up with the last 5 years, and I plan on staying positioned (in full, or in part, for the long haul). Due to the volatility and liquidity, it has also been a great one to trade the trends with for Uranium miners, just like (URG) (URE) Ur-Energy has been.

            I can understand the desire to book well-earned profits though, and recently trimmed back a big chunk of my (UUUU) position as well on (01/05/21) & trimmed more on (02/08/21) in the general session and again in the afterhours session. I suddenly felt naked with the smaller position though, and did buy a little of that back on (02/09/21) and added a bit again yesterday on (02/18/21). I’ve only got about half of my normal Energy Fuels allocation at this point though, because Uranium miners have put in a quite a run for some time now. Personally, I’m waiting to see if they take a pause for a little while from these levels, to buy more back on any corrective moves.

            As for Nexgen (NXE) I first got positioned back in 2016 after their initial success with the drill bit, because I was in (FCU) Fission back then, and Nexgen was right next door. I decided to scrap Fission, and go all Nexgen, because their sandstone hosted Uranium in the Athabasca Basin doesn’t have the underground water issue that Fission has (being under a lake), or even that Cameco has at McArthur River, where they had to continually freeze the walls of the mine to keep it from flooding. I’ve also traded around my NXE position dozens of times, and trimmed a little yesterday (although it would have been better if I had waited until today as it popped up over 4% again to close on Friday).

            NexGen is the most well-endowed undeveloped hard rock Uranium deposit on the planet, and is bigger than both of Cameco’s deposits, or anything in Australia or held by the big boys like Rio or BHP. As a result, I can’t imagine playing the Uranium market longer term without a stake in it, as it is the kind of deposit that one of those companies (Cameco, BHP, Rio, or maybe even a large Oil & Gas Energy company), will purchase, as it can supply a sizeable component of the future Uranium needs of the market. Until then, Arrow’s pounds in the ground are a perfect call option on higher Uranium prices. At this point, it has really run quite a bit higher again over the last year, so I’m watching for any meaningful pullback to add even more.

            The other great kicker with (NXE) NexGen is that they own 53% of the (ISO) IsoEnergy shares, that they spun out from Nexgen a few years back, and that stock has really gone on a tear as well, after they also found another amazing U discovery.

            Lately I’ve started moving down the more speculative food chain again, and moved a few funds over to the much earlier stage and far riskier (STND) Standard Uranium, that is exploring their Davidson River project. around the same general trend in the Athabasca Basin, near Fission’s Triple R deposit and NexGen’s Arrow deposit.

          • On February 19, 2021 at 8:01 pm,
            Excelsior says:

            Another company on that same trend, but on the other side of NexGen is (PTU) Purepoint, with their Spitfire deposit. It is earlier stage still, with more risk, but it also looks like they’ll keep expanding that deposit into a winner, but it’s also run up quite a bit lately.

            For most commodities (be it Silver, Gold, Copper, Lithium, Uranium, etc….) my strategy is to have a few anchors with the producers, then the bulk of the positions in the advanced development plays, and then the balance in the riskier but higher torque earlier stage exploration stocks.

            In Uranium, I selected positions in Energy Fuels and Ur-Energy because they were lower cost insitu producers, and when I initially invested in them, they still had several years of longer term off-take contracts in the high $40’s to mid $50’s that allowed them to keep producing despite the low prices, and also to buy in the spot market at half the cost, and sell into their contracts.

            I selected UEC, Denison, Azaraga, and Nexgen, because they look like some of the best development stage plays out there. UEC already has permitted their ISR operations (and had produced in the prior cycle). Denison had exposure to the Cigar Lake production from Cameco with 22% of the McClean Lake mill, and they have the ability to put their Wheeler River deposit into production using the lower cost in-situ mining. Azarga has an up and coming in-situ development project in the US. With NexGen, I believe they are moving forward as if they are going to take it into production themselves, but more than likely they’ll get scooped up by the big boys.

            Now is the point where I’m going to start building my more speculative exploration stocks, and Standard Uranium is the only one I hold at present (except for the 53% stake in IsoEnergy by way of NexGen ownership). Having said that, I’ve owned other explorers in the past for short periods like UEX, Anfield Energy, and ALX in the past and may add those back. I’m also keen on Purepoint as mentioned above, as well as Laramide, Skyharbour, and a few other. Bannerman and Boss are interesting Aussie development plays under consideration. Peninsula Energy is another ISR producer in the US on care and maintenance, and when spot prices rise, it’s one I may rotate some funds into.

          • On February 19, 2021 at 8:07 pm,
            Excelsior says:

            Sorry that this response is getting long, but one more thought about Energy Fuels.

            (UUUU) (EFR) is not just a Uranium producer anymore, as it is also one of the few producers of Vanadium, and recently has started the processing of old waste mineralization from other mines to for Rare Earth Elements. So when people try to say that Energy Fuels is overvalued based on the current price of Uranium and the lack of current U production at $30 pricing, they are neglecting to value the Vanadium and Rare Earth processing potential, or that they are a US domestic supply and the United States has 1/4 of all the nuclear plants on Earth, and government initiatives to secure a domestic strategic supply. That should keep a premium on Energy Fuels valuation metrices compared to any of their peers in the US, Canada, Australia, or Africa.

          • On February 19, 2021 at 8:14 pm,
            Excelsior says:

            Wrapping up Uranium, it should be mentioned that there are a few newer companies (with reboots of older assets), Encore Energy and Global Atomic, that have market darlings and run quite hard to the upside, along with some of the African plays like Deep Yellow, Palldin, or GoviEx. Basically the whole sector has had a few months of insane volumes and price escalations, so it is starting to seem a bit over-heated at present. However, that is the case in many sectors almost everywhere one looks (Copper, PGMs, Lithium, Cannabis, Cryptos, Biotech), so it is just par for the course in these frothy markets.

          • On February 19, 2021 at 8:33 pm,
            Dragonite says:

            Excelsior,

            Thank you very much for your comprehensive answers. I will read them several more times. I have many uranium producers which you have. Maybe I should think about re-establishing my position in EFR (sorry for misspelling its name). I do have some far more speculative explorers like UEX, Palladin, Skyharbor, CanAlaska, etc. Among them, my UEX position is large, about 50K shares. I think I may not go any further down the food chain. For now, I will just wait and see I can add more to NexGen which I have only 1500 shares. I am making good money in other areas like AI, ecommerce, hydrogen power, solar power, precious metals, etc. I recently acquired 2600 shares for PHYS since I feel gold itself has consolidated enough and may jump higher. Since I bought for my operating company, I don’t want to get too risky. Gold and silver is still my major focus. Among them, SVM and FR are my biggest securities beyond ETF and physicals.

            Thanks again for your help.

          • On February 19, 2021 at 8:37 pm,
            Dragonite says:

            BTW, my immediate task might be finding some medium tier base metal producers since I have not spent much time on base metals and only changed my mind last year. If you have any profitable medium sized producers with good growth prospect, please let me know. They include copper, nickel, Zink, etc.

          • On February 19, 2021 at 8:58 pm,
            Excelsior says:

            Thanks Dragonite. It seems like you have a good handle on things in the Uranium space, and a good basket of companies. Yes if/when the U stocks correct, then I’ll be looking to add more NexGen and Energy Fuels as well.

            As for Base Metals producers there are quite a few of them, and most are polymetallic, but with a certain emphasis. Currently my portfolio has allocations to (SMTS) Sierra Metals [Copper/Silver/Zinc/Lead/Gold], (WRN) Western Copper & Gold, (ATY) Atico Mining [Copper/Gold], and (TV) Trevali Mining [Zinc/Lead/Silver].

            The other exposure to Base Metals producers are through the Silver/Gold stocks, with big Zinc, Lead, Copper co-credits — like Silvercorp, Americas Gold & Silver, Coeur, Hecla, Endeavour, McEwen, etc…

          • On February 19, 2021 at 9:09 pm,
            Excelsior says:

            Some other good Base Metals producers that are a bit larger are Teck, Antofagasta, South32, Calibre, Glencore, First Quantum, Anglo American, Hudbay, Lundin Mining, OZ Minerals, Vale, Vedanta, and Sandfire.

        • On February 19, 2021 at 5:35 pm,
          Draginite says:

          I am glad to say that I purchased some XBM.TO since earlier last year at around $10 Canadian. Now the initial purchase is up nearly 70%+. I have been kept adding and now holding around 1000 units. I may add more till I feel enough.

          Excelsior, you are uranium expert. I sold my EFR (Uranium Fuels) in Toronto exchange today which I purchased 1.5 years ago. I heard that Rick Rule does not feel it is worth investing. What do you feel about it? I want to put the money into NexGen which Rick Rule speaks highly of. I feel the current surge in the price is not sustainable and a pull back is coming. Then I can put the money to work.

          Thank you.

          • On February 19, 2021 at 5:51 pm,
            Dragonite says:

            Sorry for the repeat. It said that it is under review because I spelled my name wrong.

      • On February 19, 2021 at 2:25 pm,
        irishtony says:

        Hi EX…If i spot something that might help you lads out then i will post it.

        • On February 19, 2021 at 2:39 pm,
          Excelsior says:

          +1 IrishT. You always have, and it is greatly appreciated.

  2. On February 19, 2021 at 12:44 pm,
    Excelsior says:

    Bitcoin continues to plow higher and higher. Currently at $55,506 per… Stunning rally.

    https://www.coinbase.com/price/bitcoin

    • On February 19, 2021 at 1:17 pm,
      Excelsior says:

      I already sold 3 of my 4 crypto miners (Hive Blockchain, Argo Blockchain, and Coin Citadel) the end of last week and the middle of this week.

      At this point I only have one fishing pole left in the cryptoverse with my (HODL) Cypherpunk Holdings. I considered selling it today, concerned things were getting too frothy, but I’ve felt that since Bitcoin eclipsed $40,000 and it hasn’t slowed down.

      I’m risking things changing over the weekend, but I decided to HODL my (HODL). 😉

  3. On February 19, 2021 at 12:51 pm,
    John Kruschke says:

    Good interview Cory. Hard to make heads or tails as to what is the future.

  4. On February 19, 2021 at 1:02 pm,
    SilverDollar says:

    What or who goosed HL today?

    • On February 19, 2021 at 1:12 pm,
      Excelsior says:

      I’m pegging that one on Matthew. 🙂

      Yeah, (HL) Hecla up 7. 6% was nice to see. Endeavour was up 6.5%, and actually many of the Silver producers were up in the green today.

      My biggest Silver Developers/Explorers gains were in (KUYA) Kuya Silver up 13.6%, (DV) Dolly Varden up 9.5%, and (DSV) Discovery Metals up 9.4%

      • On February 19, 2021 at 2:19 pm,
        David says:

        I had Grid @ 22.97%, Atico @ 16.35%, Group Ten @ 11.23% , Discover @ 10.21 and Granite Creek @ 10.18%. However, another split day with gain limited to 3.57%. Better than going down every day.

        • On February 19, 2021 at 2:45 pm,
          Excelsior says:

          David – Those are all solid companies and I also hold positions in those. Well done sir.

          Yes, Atico (ATY) was up 15.7% Granite Creek (GCX) was up 11.6%, Grid Metals (GRDM) was up 25%, and Group Ten Metals (PGE) was up 10.5%, but those are Copper and Platinum/Nickel plays. My comment was just discussing my Silver positions performance.

          • On February 19, 2021 at 2:51 pm,
            Excelsior says:

            Overall though, during the last few months, the Copper and PGM stocks have been more interesting based on the battery theme, combined with the reflation trade theme.

  5. On February 19, 2021 at 1:17 pm,
    SilverDollar says:

    Thanks. I attempted to stink bid some more DV but Bob’s story beat me to the punch.

    • On February 19, 2021 at 2:49 pm,
      Excelsior says:

      Thanks for that heads up Silverdollar. I didn’t even realize Bob M. had a piece out on Dolly Varden today, and thought it was just moving higher with many of the silver stocks. Very nice indeed!

      ___________________________________________

      (DV) Dolly Varden hits 35 Ounce Silver

      Bob Moriarty – Feb 19, 2021

      http://www.321gold.com/editorials/moriarty/moriarty021921.html

  6. On February 19, 2021 at 1:33 pm,
    Dick Tracy says:

    Nevada Copper is up 50% in one week, I can’t complain! LOL! DT

    • On February 19, 2021 at 1:38 pm,
      Excelsior says:

      Nicely done DT. Yes, almost all the Copper stocks have been flying off the shelfs lately.
      (and rightly so, Dr Copper has been working out and just beefed up a to $4 handle).

      • On February 19, 2021 at 1:38 pm,
        Excelsior says:

        shelfs = shelves

  7. On February 19, 2021 at 2:36 pm,
    OOTB Jerry says:

    Well………$1785……..$27.22……..humm and it is Friday…. 🙂

  8. On February 19, 2021 at 3:09 pm,
    BDC says:

    Latest: https://ibb.co/DwCbCTX
    Date adjusted. Focus REZZF next.

  9. On February 19, 2021 at 4:23 pm,
    GrowingTrees says:

    Took a first tranche. American Cumo Mining Corp. MLYCF @ $.06 Idaho / 1.5 billion pounds of copper / 2 billion pounds of moly / 150 million ounces of low grade silver. 246 million float count. Trying to take more positions in U.S. properties. Also another mine in Idaho with 1 mil oz gold / 48 mil oz silver. Could be worth a look to others.

    • On February 21, 2021 at 12:25 am,
      Excelsior says:

      GrowingTrees – Thanks for the heads up on American Cumo Mining.

      • On February 21, 2021 at 7:20 am,
        GrowingTrees says:

        What little I contribute here because of surrounded by greatness.

  10. On February 20, 2021 at 11:27 am,
    GrowingTrees says:

    https://matmatch.com/blog/rhenium/

    Cumo Mining Corp also has rhenium in their deposit.