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Hour 2 – Focusing On The Resource Sector

Cory
August 4, 2018

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Here is Hour 2 of the Weekend Show. We are focusing on the resource sector as well as featuring an interview with Northern Empire Resources on the back of the acquisition by Coeur Mining.

  • Segment 5: This is a replay of the comments made by Jordan Roy-Byrne on Wednesday. Jordan has been very actuate predicting the price for PMs so I wanted to feature the interview for all of you who missed it.
  • Segment 6: Lobo Tiggre, Founder of The Independent Speculator outlines why he is a happy buyer of resource stocks right now.
  • Segment 7: Chris Temple updates us on the mining and exploration environment in Ecuador.
  • Segment 8: My interview with Mike Allen of Northern Empire wraps up this week’s show. We outline the deal with Coeur and what is could mean for the overall sector.

Segment 5

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Segment 6

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Segment 7

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Segment 8

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Discussion
37 Comments
    Aug 04, 2018 04:43 AM

    Cory & KER contributors – Thanks for another great weekend show!

      Aug 06, 2018 06:01 AM

      Mr T did a good job of responding to the situation in Ecuador and some of the nonsense currently circulating on PM blogs in a crazy over-reaction to just 1 stalled program. Nice to hear some sanity return to the discussion.

    Aug 04, 2018 04:45 AM

    Gold Closes Lower for the Fourth Consecutive Week
    by Gary Wagner – August 3, 2018 #TechnicalAnalysis #Charts #Video

    https://thegoldforecast.com/video/gold-closes-lower-fourth-consecutive-week

    Aug 04, 2018 04:48 AM

    Commodities Are The Cheapest they have Ever Been Compared to the S&P

    Samuel Pelaez on #PalisadeRadio – Aug 3, 2018

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

      Aug 04, 2018 04:52 AM

      Some Junior Gold Stocks Could See 100% Gains Before Year End

      Brien Lundin – MiningStockEducation – Aug 4, 2018 #AudioInterview

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

        Aug 04, 2018 04:09 AM

        This was a good post from a user at ceo.ca called @gsdirectroyalty:

        __________________________________________________________________

        @gsdirectroyalty – “1/2 Amid the multi year low share prices, pathetic volume on the TSX.V, and negative, cynical and downright crabby moods of speculators there are some interesting data points. I’m telling myself, PAY ATTENTION!”

        “Since the spring we have seen four significant M&A transactions in the Jr resource space; Hecla taking $KDX, South 32 taking $AZ, Orion taking $DNA, and now Coeur taking $NM. It can be argued that each of these is a one-off, situation specific transaction but four in a short space of time looks like a trend. A common denominator of all of the acquired projects is high grade. While $NM’s Sterling project isn’t high grade in the usually understood sense (u/g), it is the highest-grade open pit development project in the western US and Northern Mexico.”

        “Two of the best performing stocks in the sector over the last six months are $SIL and $WDO. The common denominator is consistent high grade.”

        (08/03/18)

        https://ceo.ca/index?ea4232a294d4

          Aug 04, 2018 04:15 AM

          Gold’s outback outperformers urged to turn M&A firepower on US

          Bloomberg News | about 16 hours ago

          “Gold producers in Australia are outperforming their global competitors, prompting investors to encourage them to expand their horizons and acquire struggling North American rivals.”

          “Australian gold miners currently enjoy some of the highest margins in the world,” said Stephen Land, San Mateo, California-based portfolio manager at the $1.1 billion Franklin Gold and Precious Metals Fund. The producers are being supported by cuts to operating costs and stronger prices of bullion in Australian dollar terms.”

          http://www.mining.com/web/golds-outback-outperformers-urged-turn-ma-firepower-us/

            Aug 04, 2018 04:34 AM

            Quoth the Raven interviews Peter Schiff
            Published on Aug 4, 2018 #AudioInterview

            “On today’s podcast, Peter Schiff finally checks in after me badgering him with e-mails for 6 months come on! We cover a broad range of topics, including disdain for how the mainstream media covers finance, what caused the 2008 collapse, what will cause the next economic collapse, how Keynesian theory and Austrian economic theory differ, how inflation has an effect on the middle class, the politics of Trump’s economic policy, Bitcoin, the recent volatility in tech stocks and tons more.”

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

            Aug 04, 2018 04:08 AM

            HAYWOOD RESEARCH: The Weekly Dig – Gold Falls to 16 Month Low

            Mick Carew, PhD, and The Haywood Mining Team – August 4, 2018

            “Gold Falls to 16 Month Low as July Marks the Fourth Consecutive Month of Declines”

            http://cdn.ceo.ca.s3-us-west-2.amazonaws.com/1dmb9qm-MMAug32018.ceo.pdf

            Aug 05, 2018 05:41 PM

            (ANX) Anaconda Mining and College of North Atlantic to Partner In Innovative R&D Projects

            @newswire on August 3, 2018

            https://ceo.ca/@newswire/anaconda-mining-and-college-of-north-atlantic-to-partner

            Aug 06, 2018 06:45 AM

            This is why I like Anaconda so much. Great assets and management who is always trying to be better. I bought more this morning.

            Aug 06, 2018 06:09 AM

            I agree Charles. ANX is well run Jr Producer/Explorer, and they always seem to be exploring interesting ways to generate shareholder value.

      Aug 05, 2018 05:37 PM

      Rick Rule Talks Investment Opportunities: Good Value and Bad Ideas
      Stockhouse Editorial – 4 days ago

      “I think the industry prefers dumb money. So, the generalist investors are busy trying to lose money in blockchain and pot (because) they’ve been tired of losing money in mining for a while. That’ll change…It’s useful to note that over the last 12 months on the TSX and on the ASX, among the companies we (Sprott) follow, 60% of the equity cap contributions to the companies have been by major mining companies. So what you’re seeing is the return of the smart money and the exit of the dumb money.”

      http://www.stockhouse.com/news/newswire/2018/08/01/rick-rule-talks-investment-opportunities-good-value-and-bad-ideas

        Aug 05, 2018 05:48 PM

        Is A Monster Gold Rally Just Around The Corner? Cramer’s Charts Show Bottoms Are In

        Anna Golubova – Tuesday July 31, 2018

        “This chart shows you that the big-money speculators are pretty darned negative,” Cramer said. “And I think perhaps too negative on the yellow metal, which could be tinder for a big rally.”

        “Logically, the yellow metal should be doing much better than its current $1,231 an ounce level.”

        “The price of gold still hasn’t really reacted to the current trade war, or the exploding budget deficit — which a lot of you care about tremendously, of course — or even the recent uptick in inflation,” he continued. “With inflation on the rise and the government borrowing insanely high, you’d expect precious metals to become more popular on the Wall Street fashion show.”

        This is why Cramer describes this time as “the single best time of year to bet on gold.”

        http://www.kitco.com/news/2018-07-31/Is-A-Monster-Gold-Rally-Just-Around-The-Corner-Cramer-s-Charts-Show-Bottoms-Are-In.html#.W2MTGH055b0.facebook

    Aug 04, 2018 04:12 AM

    This candleglance chart of the #Uranium miners is interesting to review.

    > Select the duration drop down for (6 months) and (1 year) on this chart.

    It’s quite revealing that #Producers were the prime movers, and US #developers did well over the last year.

    (especially since much of the speculative retail investors, “experts”, gurus, and even prominent news letter writers were obsessed over explorers in the Athabasca Basin or Africa, and many “experts” warned investors to steer clear of the dreaded producers….) 😉

    $URA $CCJ $UUUU $URG $UEC $DNN $NXE $AEC $UEX $GXU $SYH $WUC

    https://stockcharts.com/freecharts/candleglance.html?URA,CCJ,UUUU,URG,UEC,DNN,NXE,AEC.V,UEX.TO,GXU.V,SYH.V,WUC.CA|B|

      Aug 05, 2018 05:25 PM

      Billions at risk for Gulf Coast as China threatens LNG tariffs

      By Katherine Blunt August 3, 2018

      https://www.houstonchronicle.com/business/energy/article/Billions-at-risk-for-Gulf-Coast-as-China-13131063.php

      Aug 05, 2018 05:10 PM

      Nuclear wasteland: The explosive boom and long, painful bust of American uranium mining
      Tom DiChristopher – Sat, 4 Aug 2018

      – Government incentives and trade barriers once sparked a gold rush for uranium, leading to a boom in mining for the nuclear fuel.
      – However, U.S. uranium miners have endured decades of distress as foreign competition entered the market and demand faltered as nuclear energy fell out of favor.
      – Uranium miners are now asking the Trump administration to erect trade barriers torn down more than 30 years ago to preserve the industry.

      “That has heaped pressure not just on U.S. miners, but on Canadian companies as well. Canadian mining giant Cameco announced last month that it was shutting down the world’s biggest uranium mine indefinitely. The company had initially anticipated it would shutter the mine for 10 months while it waited for the market to recover.”

      “Energy Fuels and Ur-Energy warn that with American allies under pressure, too, U.S. nuclear power plants could find themselves increasingly reliant on uranium from Russia and other countries with state-controlled industries.”

      https://www.cnbc.com/2018/08/04/the-miners-that-fuel-americas-nuclear-power-and-atomic-arsenal-are-di.html

        Aug 05, 2018 05:48 PM

        First nuclear plant visit for Perry
        03 August 2018

        “Nuclear provides approximately 20% of the electricity generated in the United States. It is one of our most reliable sources of baseload power, and it is also one of our cleanest sources of power, providing about 60% of our carbon-free energy output,” Perry said during the visit to Exelon Generation’s James A Fitzpatrick nuclear power plant. “At DOE, we’re partnering with industry to develop ways to extend the safe and economic lifespan of our nuclear fleet. And together, we’re addressing the technical challenges to bringing advanced and innovative technologies to the market.”

        http://www.world-nuclear-news.org/Articles/First-nuclear-plant-visit-for-Perry

    Aug 04, 2018 04:46 PM

    Louis James’ (Lobo Tiggre)comments were a good listen from my perspective. His positive attitude at this stage is needed by our crowd. I found his analysis and reasoning to be balanced and real. Something any logical investor could buy into and I have no doubt he will be proven right……..hopefully his attitude can get some new and perhaps former PM investors interested. Could be the best move many of them make IMO. Although I do some trading, I’m pretty much in and although most are red at the moment, I see no future in selling since I have no place to put the money except where it is. I wouldn’t touch the conventional markets………No matter what Chris says. That day is past IMO. Any extra funds that appear will go to the Uranium sector……

    Aug 04, 2018 04:37 PM

    There are a lot of considerations in our economy today. If you are running a business it doesn’t matter whether you are poor or rich. We live in an age of technology, if you are a poor farmer, the more machines must be brought to increase your output to keep the wolf from the door. Many industries have gone overseas because they have felt the sting of production when producing in The US. Whole regions of The US have felt the effects of depression in one or more industries but instead of realizing how important a diversified economy is, the good fortune of the few in the tech industry has left traditional industry paralyzed. However people are still moving from the rural to the urban. Our society is being left behind in the triumphal march of progress. Our species will never recover from the A.I. revolution. DT

    CFS
    Aug 05, 2018 05:33 AM

    LATEST CATHERINE AUSTIN-FITTS.
    https://www.youtube.com/watch?v=yzc0KXO2DVw

    Most import part is towards end on pension funds.

    Aug 05, 2018 05:17 PM

    I just don’t know what not to buy anymore, it all looks good. DT

    Aug 05, 2018 05:43 PM

    I like Lobo Tiggre! Lobo’s not loco…

      Aug 06, 2018 06:05 AM

      Hi Bonzo – I wanted to let you know that I bought a bit more USAS this morning. I analyzed the daily chart a bit more over the weekend and it looks like it is in a five wave ending diagonal that is just concluding. The stock is moving off the bottom rail of the diagonal, so I put a little more to work. Best of luck to you.

        Aug 06, 2018 06:16 AM

        Thanks, Charles. It looked cheap to me@2.50. Wonder if Matthew or Doc have been buying more USAS too. I just wonder if Obrador will raise mining taxes in Mexico?

          Aug 06, 2018 06:46 AM

          I think a tax increase is certainly possible, but with USAS it’s cost structure is so good, I don’t think it will be significantly impacted by comparison to other Mexican miners. If they did raise taxes my opinion is it wouldn’t last given how many people who are employed by mining in Mexico and the likely backlash that would result. Its a risk, but a risk worth taking given the potential upside. Keep in mind that if silver explodes higher, the government will reap the reward in the form of higher taxes.

            Aug 06, 2018 06:14 AM

            +1 USAS has such low industry leading costs with an AISC of $2-$4 projected for 2018, that even a hike in taxes at their Mexican operations wouldn’t put a major dent in the revenues they’ll be generating for the balance of this year and the years to come.

            Also, they still have sizable producing assets in Idaho that are diversified away from Mexico in the US.

            Americas Silver Corp will be doing just fine over the next 12-18 months and will be a cash cow.

            The only other Silver miner even in the same ballpark is SVM Silvercorp with a projected AISC of $1-$4 this year.

            Even at $15-$17 Silver these companies are doing great. When the marketplace wakes up to that over the next few quarterly reports, then I expect both to outperform their Mid-tier peers in the Silver/Zinc/Lead space.

    Aug 05, 2018 05:46 PM

    ARV.AX: Exceptional Au, Co and Cu Intercepts at Carlow Castle
    https://www.asx.com.au/asxpdf/20180806/pdf/43x320sczdc709.pdf

    Bobby Kennedy on HotCopper writes: Holy cow, Carlow Castle is fast becoming a beast!! If they manage to connect the three deposits into one monster, it could be one of the most promising cobalt resources on ASX (with f’off gold and copper credits – or the other way around). Shallow, close to plant, low opex, low capex, very near term mining via ‘trial mining’ programme. Unreal

    CFS
    Aug 05, 2018 05:12 PM
      GH
      Aug 06, 2018 06:05 AM

      One thing I’ll say for you and your ilk, CFS — while not admirable, your persistence in the blame-shifting game must be recognized and respected (in the same sense that rattlesnakes or Lyme’s disease must be respected).

    Aug 05, 2018 05:57 PM

    How do the wealthy stay that way? They don’t invest like the rest

    Terry Cain – The Globe and Mail – 3 days ago

    “Speaking of Tiger 21, here is how its members, more than 500 high-net-worth investors in North America and London, were investing in the first quarter of this year:”

    Real estate, 30 per cent
    Public equities, 23 per cent
    Private equities, 21 per cent
    Cash and cash equivalents, 10 per cent
    Fixed income, 9 per cent
    Hedge funds, 5 per cent
    Commodities, 1 per cent

    https://www.theglobeandmail.com/investing/globe-wealth/article-how-do-the-wealthy-stay-that-way-they-dont-invest-like-the-rest/

    Tom
    Aug 06, 2018 06:50 AM

    long JAZZ