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Outlook for Gold, GDX, GDXJ, and Positioning for the Holy Grail Opportunities in Mining Stocks

Cory
July 29, 2021

Jordan Roy-Byrne, Founder of The Daily Gold discusses his outlook on the precious metals prices and the large disconnect in how hard many of the mining stocks have continued to correct in comparison to the metals. We get into what Jordan looks for in some of the different stages of mining companies, and the combination of factors that he considers the “holy grail” of opportunities to position in for longer-term value creation.

Click here to visit Jordan’s site – The Daily Gold.

Discussion
33 Comments
    Jul 29, 2021 29:58 PM

    This was a fun discussion with Jordan (which actually continued on for a while after the segment), and he really made some great points on finding those “holy grail” set up’s in growth-oriented producers and active developers that still have the potentials for massive exploration upside and operational expansion potential.

    Hopefully folks get a few good thoughts from the chat, and if there are any “Holy Grail” situations that folks have identified, it would be nice to hear which companies folks are considering and what the catalysts are that may move the needle.

      Jul 29, 2021 29:03 PM

      Apologies that there were 3 instances of using the word “folks” in that last sentence. (that a bit much).

      > Sorry about that folks… 😉

        Ann
        Jul 29, 2021 29:09 PM

        Lol no problem Ex.I enjoyed the interview.wondering if you follow and have an opinion on Nicola mining, Nim.V Merritt is only a couple hrs drive from my area.We are up their a couple times a month fishing the lakes.We know quite a few of the locals….never hear a peep from them regarding Nicola starting production Thx.

          Jul 29, 2021 29:41 PM

          Haha! Thank Ann. Yes, I’m familiar with Nicola Mining (NIM) and remember when they used to be Huldra Silver back in the day. I used to own them back in 2016 and 2017, and liked the idea that they could use their Merritt mill to toll process other Gold & Silver miners ore, and thought initially that they’d use those proceeds to explore Treasure Mountain. However, when Silver prices tanked, they switched gears to exploring for Copper around the mill, and that showed some promise, and I remember them even selling some old stockpiles to processor at one point and getting paid on that batch as production, which seemed like a wise transaction. I lost track of them but have seen them put out some good Copper drill hits the last few years, and believe I saw something a year or so back where they finally started exploring on Treasure Mountain again, but honestly have not taken a deep dive in a little while and don’t know what they’ve been up to the last year or so.

          What kind of production are the doing – more toll milling agreements? Or did they start trucking some of the copper ore? (they had a potential JV partner interest in some of that copper in the past but don’t know if they still have that arrangement).

            Jul 29, 2021 29:52 PM

            OK Ann… you made me look. Lol!

            I see the news now and congratulations to the team at Nicola Mining. Since they’ve been producing ore from the Merritt mill off and on for years, it is a little bit a of stretch to suggest they are the newest PM producers in Canada, as they’ve been producers in the past and have continued to do toll milling, but regardless nice to see this more meaningful production deal go through.

            __________________________________________________________________________

            (NIM) (HUSIF) Nicola Mining Inc. Commences Mill Processing to Become Canada’s Newest Gold – Silver Producer

            9 Jul 2021

            https://ceo.ca/@newsfile/nicola-mining-inc-commences-mill-processing-to-become

            Jul 29, 2021 29:01 PM

            In addition to the deal announced with Ocean Partners, Nicola had also recently done a deal with Blue Lagoon in May.

            _____________________________________________________________________________

            Nicola Mining Inc. Extends Gold and Silver Profit Share Agreement with Blue Lagoon for Dome Mountain Mine and Receives First Shipment

            May 5, 2021

            “Nicola Mining Inc. (TSX.V: NIM), is pleased to announce that it and Blue Lagoon Resources Inc. (CNSX: BLLG) have signed an amending agreement to the Milling and Smelting Profit Share Agreement dated March 31, 2017.”

            “The Amending Agreement comes at a particularly exciting time, as Blue Lagoon has received permission allowing it to extract more than 6,000 tonnes of underground stockpiled material. Nicola has ordered spare parts, prepped its mill, and is in the process of hiring key employees prior to commencing production at its mill, which is located near Merritt, B.C. ”

            https://nicolamining.com/nicola-mining-inc-extends-gold-and-silver-profit-share-agreement-with-blue-lagoon-for-dome-mountain-mine-and-receives-first-shipment/

    Jul 29, 2021 29:11 PM

    Loved that close with DOLLF this afternoon!

      Jul 29, 2021 29:45 PM

      +21

      Nice move in ole’ Dolly Varden. Yes, DOLLF up 21.43% and DV up 18.87%. Not too shabby…

        Ann
        Jul 29, 2021 29:31 PM

        Thanks for the feedback on Nicola.13 cents cdn. caught my eye.

          Jul 29, 2021 29:36 PM

          Sure Ann. Yes, NIM only has $37.8 Million market cap, so a nice way to play a junior silver/gold/copper company with a production component to help bring in revenues. I believe they’ve talked for a few years now about also monetizing that gravel asset next to the mill as another small stream of incoming revenues. I’ll get more interested when they find a profitable way to get Treasure Mountain back into Silver production using their own ore, and also a way to partner up with someone for monetizing their growing copper resources at New Craigmont.

          May your trading be prosperous.

    BDC
    Jul 29, 2021 29:55 PM

    Wesdome, mentioned by Jordan, has been restrained at the 78.6% level for weeks. A break above its all time high could be harbinger for the entire sector. — https://postimg.cc/kDGYx8Q4

      Jul 29, 2021 29:12 PM

      Wesdome has been a beast for while now.

      I had missed the initial run higher, so when stocks were getting ugly near the March double-bottom a few months back I picked up my first shares of Wesdome on March 23rd, but sold some of those shares back on June 4th, and left some on to keep riding. That portion I sold was a still a profitable trade, but a bad trade in the sense that it would have been better on Wesdome to have just held onto all the shares and not trimmed in June.

      Oh well, WDO has been a real success story in the sector, like Kirkland Lake and K92 that Jordan also mentioned. All of them did turn out to be “holy grail” stories over time by continuing to add value through exploration and expanding operations.

      I was in Crocodile gold that got acquire by Newmarket Gold that was then acquired by Kirkland Lake and held the KL shares for a period, but eventually rotated out into other stocks. It was a still a very nice run, but KL continued to run based on the continued success with the drill and more acquisitions that increased operational output.

      With K92 I got positioned in 2017 and rode it up through mid 2020, then got back in for the move into late 2020, but then rotated out into other names, but have followed Bryan Slusarchuk (the co-founder and prior President of K92) into his next venture at Fosterville South. [Ironically or not so ironically, exploring around Kirkland Lakes’s Fosterville Mine in Victoria, Australia]. It will be interesting to see if Bryan can have lighting strike twice…

          BDC
          Jul 30, 2021 30:56 AM

          Great presentation. I had little knowledge of the Kirkland Lake areas. So close to Melbourne! However, Fosterville South stock itself appears to be at a critical level: https://postimg.cc/QBrVq007.

        BDC
        Jul 29, 2021 29:33 PM

        Today’s was the third generally saturated high this month: https://tinyurl.com/apjx59rc
        The other two were followed by lower levels. Missing so far are saturated lows as last seen in late June.

          BDC
          Jul 29, 2021 29:36 PM

          (The numbered cells show saturation.)

            Jul 29, 2021 29:38 PM

            Thanks BDC. Good idea on using the trading dates and then highlighting which dates in which ETFs reached saturation by putting numbers in those boxes. It helps it jump off the monthly table better.

            BDC
            Jul 30, 2021 30:08 AM

            Yes, it took awhile but the present system seems clear enough.

            The unnumbered cells show a different aspect than saturation, which became necessary because adequate saturation levels sometimes do not occur. These cells reflect immediate power: lighter colors for the same day and darker colors indicating a strong likelihood of follow through for at least another day or two.

    Jul 29, 2021 29:49 PM

    Paul you’ve gone after Jordan almost every time we bring him on. We get that you don’t like him, but that’s a pretty big attack against his integrity, and fairly large claim you are making against him that his portfolio is all for show and that it’s a “fake portfolio not real cash just ficticous portfolio on paper…” and then you go on to tell our guest on the show that they “should be ashamed”. Seriously?

    If you can’t present concrete proof of these claims (which you can’t), then it’s probably best not to be making them and it is getting really old to see you have a beef with Jordan or Chris Vermeulen every single time we bring them on.

    For goodness sakes, it reminds of me of the Deep Purple Haze dude that had to come on and grind on Craig Hemke for several years, every single time he came on the show, without ever giving the community any post of value himself. Give it a rest already.

    Do you have anything constructive to share and add to the community or any cogent ideas that can actually help other investors?

    Jordan has come on the podcast almost every week, and is investing his time and experience with us (which we are grateful for), to share his technical analysis and macro fundamental analysis. That doesn’t mean people have to agree with their analysis, as we don’t necessarily agree with every guest we bring on the show. Disagreeing, or seeing things differently is actually great when done in the spirit of debate or collaborative sharing of different viewpoints, but our guests should not be routinely attacked and smeared each time they come on the show.

    Jul 29, 2021 29:16 PM

    Good news. The bottom for gold is in. Gary Savage says it should rally for the next 2 to 4 months. But we still have the Bill Gates-Fauci-Schwab genocide to worry about. It never ends.

      Jul 29, 2021 29:35 PM

      Thanks for the heads up Bonzo.

      Gold update Confirmation

      Jul 29, 2021 – Smart Money Tracker #TechnicalAnalysis

      https://youtu.be/M9jmjkj7aSg

      Jul 30, 2021 30:53 AM

      I’d rather focus on gold icl not miner icl since the latter ones were in “takedown to accumulate” mode recently

      Jul 30, 2021 30:32 AM

      Great. Probably explains why my 40+ stocks are down $42 today…kinda like every other day at this point. Some up some down…computers suck. Some children should not be allowed to have them…particularly that work for the Fed.

    Jul 30, 2021 30:21 AM

    Just thought I would repost my below comment from the day before as its relevant:

    Reading all the above posts and all I can think is: this world has become so manic and conflicting over the last 18 months. Clear hidden agendas at play, just to what extent? In Aus it is becoming harder and harder to refuse vaccine already. Reading between the lines, for those who wish not to be vaccinated are going to find it increasingly difficult to live their lives. Liberties, rights and choices are going to be whittled away. Various work sectors will mandate vaccines. As will air travel, even domestically! Schools will also follow suit as will events with mass gatherings (concerts, sporting events etc). Venues such as restaurants and pubs are are suggesting similar measures. Where does it end?

    I consider myself pro-choice not anti-vax but I respect all sides of the argument. At least with the illusion of choice it wasnt so ruthless. Now it is just plain concerning if not a little scary. Im conflicted here as I really dont want the vaccine but in time maybe left with no choice

    Jul 30, 2021 30:41 AM

    On a further note: West Tigers (National Rugby League competition) player James Roberts was sanctioned after breaking strict Covid lockdown regulations. Whilst serving his 2 weeks isolation in his hotel he ventured out onto his balcony for some fresh air. The problem being part of the strict regulations stipulated that all players isolating are forbidden from using their balconys. To ensure this Gestapo like rule, they were forced to tape shut the balcony doors. Apparently some players were “busted” sharing belongings between balconys.

    Subsequently Roberts was suspended for 1 NRL match and fined $7,500. To top it all off, this individual has a long history of mental illness and this is how establishments and organisations treat him??? What a complete shambles we have become as a society. All in the face of a perceived disease that threatens mankinds existence, we have resorted to “dogging” people whenever possible! Everyone is seemingly salivating at the prospect of doing “their bit” and being noticed so they can be branded pc do gooders and get their daily dose of notoriety! Its a dog eat dog world full of pathetic sheeple!

      Jul 30, 2021 30:34 AM

      Nothing compared to antics of the great John Hopoate.

        Jul 30, 2021 30:34 AM

        Haha c’mon Terry, John was only plugging a few holes in defense…haha. Poor old Johns never gonna live that one down.

          Jul 30, 2021 30:49 PM

          Some guys give their face to the game but John gave it the finger. For such a great athlete to be known for this one indiscretion, it’s a cryin shame.

    Jul 30, 2021 30:04 AM

    Great posts from Doug Ramshaw, President of Minera Alamos over at ceo.ca today, for anyone following the continued success of (MAI). I remain incredibly impressed by their continual hitting of company milestones for the last few years, and they’ve been a position I’ve held steady for the long-game and a perfect example of the gains that can be made in Developers that are still growing with the drill bit, and then hit their “Golden Runway” period moving towards first gold pour.

    This has been a real standout in the Gold sector the last few years IMO, and apparently others have the same opinions, as the share price has held onto most of their gains made in the move from early 2019, into 2020, and into 2021.

    ___________________________________________________________________________

    @TheGalvanizer (Doug Ramshaw) – “There are a couple of steps to having your first “shiny” dore. This month first gold recovered from leaching. We will let the concentration of the pregnant pond build and then load our first carbon. At this stage to me that’s production of first gold concentrate. The gold con is what is stripped to that first gold dore. Heap leach operations don’t just flick on a switch there is a steady build up over time as a result of the leach cycle at the commencement of operations. With approx $18 m in working capital and no debt that initial leaching time is not impactful except on ones patience (including mine)”

    “Much of the remainder of this year will be this ramp up with the goal of Santana spitting off free cash around end of the year.”

    https://ceo.ca/mai?298091057496

      Jul 30, 2021 30:12 AM

      For those that may have missed our most recent interview with Doug back in June on Minera Alamos… here it is for reference:

      ____________________________________________________________________________

      #KorelinEconomicsReport (06/07/2021) #AudioInterview

      “Doug Ramshaw @TheGalvanizer, President and CEO of Mineral Alamos $MAI $MAIFF updates us on the Santana Mine, Cerro De Oro Project, and the La Fortuna Project. With the goal of being a multi-asset producer, the Company will be in #production at the Santana Mine this year, with the Cerro De Oro Property next in line from construction #development. Doug also shares how he sees the La Fortuna Project fitting into the production portfolio down the road.”

      http://www.kereport.com/2021/06/07/mineral-alamos-updates-on-the-santana-mine-construction-time-frame-for-the-cerro-de-oro-project-construction-and-fortuna-project-exploration/

    Jul 30, 2021 30:38 AM

    speaking of first Gold pours….. Congrats to Segun and the team at Thor Explorations:

    ________________________________________________________________________________

    (THX) (THXPF) Thor Explorations Announces First Gold Pour at Its Segilola Gold Mine in Nigeria

    by @newsfile on 30 Jul 2021

    https://ceo.ca/@newsfile/thor-explorations-announces-first-gold-pour-at-its

    Jul 30, 2021 30:30 AM

    https://ibb.co/H7fGrqd

    I have been holding Halliburton since 2020 crash. I also like OXY, CLR