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Big news out of Kirkland Lake and Detour Gold. Also comments on Great Bear and Novo

Cory
November 25, 2019

John Rubino joins me today to discuss some of the resource companies that are catching his eye. We start with the news today of Kirkland Lake buying Detour Gold for $4.9billion in an all shares deal. We then look down the food chain to some of the more advanced explorers. Great Bear Resources and Novo both released news recently that we comment on.

Please send me any company questions and I will do my best to get them answered. My email is Fleck@kereport.com.

Click here to visit John’s site.

Discussion
33 Comments
    Nov 25, 2019 25:35 PM

    Would appreciate your comments on Wesdome Gold Mines as a takeover candidate. Mid tear, Canada, continues to make new highs, low number of outstanding charges, etc…
    Thanks

    Nov 25, 2019 25:05 PM

    Hi : GOV of OHIO now in favor of impeachment . J Kasich is a mover in OHIO politics , he has long term interest in running for pres . Trumps move to sell his very profitable DC hotel , is possible a beginning of a plan B for him to flee the country to avoid fines and taxes . he could buy a plane full of gold and flee to brazil or Argentina . pence may become president. rsh

      Nov 25, 2019 25:46 PM

      Russell,
      What are you smoking?

        Nov 26, 2019 26:43 AM

        I DONT SMOKE 420 I MAKE MY OWN TINCTURE . Toast raw mary jane in closed pyrex dish in ovem at 200 degrees for 25 min . let cool . then in a mason jar cover with 151 proof rum . put in freezer for 10 days . shake 2 times a day. then strain 3 times with coffee filter paper. store in brown or green bottle. keeps 10 years if not exposed to air.2 drops under tongue . slow gradual high , great pain releaf . Legal in wash state. love to you all rsh

          Nov 26, 2019 26:48 AM

          Tinctures are the way to go for many healing herbs and medicinal plants for sure.

    Nov 25, 2019 25:04 PM

    (KL) Kirkland Lake Gold to acquire (DGC) Detour Gold in stock deal worth $4.9 billion

    by @canadianpress on 25 Nov 2019

    https://ceo.ca/@canadianpress/kirkland-lake-gold-to-acquire-detour-gold-in-stock-deal-worth-49-billion

    Nov 25, 2019 25:08 PM

    Evolution To Acquire Red Lake Gold Complex In Canada
    26 November 2019

    “Evolution Mining Limited (EVN.AX) is pleased to announce that it has, through a wholly owned Canadian subsidiary, entered into an agreement with (NGT) Newmont Goldcorp Corporation to acquire 100% of the Red Lake gold complex.”

    https://evolutionmining.com.au/wp-content/uploads/2019/11/Acquisition-of-Red-Lake-Announcement.pdf

    Nov 25, 2019 25:35 PM

    I traded off Bonterra for something, and held onto Great Bear and Pure Gold for my Red Lake holdings. I figure Bonterra will be the one…

      Nov 25, 2019 25:42 PM

      Yes, Great Bear and Pure Gold are 2 good picks for Red Lake, Ontario.

      As for Quebec, Bonterra and Osisko Mining are the 2 big stakeholders in the Urban/Barry and Windfall Lake area play. KL has a good position in BTR, and Eric Sprott, who was involved with KL also has a nice stake in Bonterra, (by way of a stake he had in Metanor that Bonterra acquired). It just seems like a likely takeover for Kirkland Lake down the road.

        Nov 25, 2019 25:58 PM

        Excelsior,
        I would love to hear an, or several interviews with You and Cory. I would like ‘ your take ‘ of the copper and zinc miners.
        In my opinion, the base metals are the deal. And PMs are going down for the short/mid term.

          Nov 26, 2019 26:23 AM

          Thanks, that’s kind of you to say Chartster, but I’m no expert on anything and would rather hear Cory interviewing the pros.

          The PMs may have a bit more seasonal year-end weakness, just like the previous 5 years during the holiday season, and preparing for more year-end FEDbabble. We saw this same pattern play out in 2014, 2015, 2016, 2017, and 2018. Typically this is a good time to go on the hunt for beat up PM miners, during tax loss selling season, and then ride them higher during the “Q1 Run” when new buying enters the space early next year.

          As for the base metals, they will be more of a gradual climb higher from here over the next 2-3 years as we see inflation come back as the dollar tops and rolls over for a gradual trek lower. The US / China “Phase 1” deal will help as a catalyst, but it will be a series of deals and fits and starts between both nations, and it is unlikely everything will get ironed out on the first deal.

          Zinc got down to a buck, and Lead was at $.80-$.90, but both have slowly started to head a bit higher with Zinc around $1.05 and Lead in the high $.90s. If Zinc can get back up to to $1.25-$1.50 that would be a real shot in the arm for the sector.

          Copper is in the same boat at $2.65 which is why the sector is so lackluster and most companies have sold down over the last year and 1/2. Copper needs to be in the mid $3s to get some enthusiasm going in the space. If it eventually gets up into the $4.00 plus range it may be short lived as all kinds of supply would flood back into the sector at those prices. I’d rathe see a $3.25-$3.50 price in Copper so that the better Copper companies shine, but to keep all the marginal optionality ounces from coming back in.

            Nov 26, 2019 26:45 AM

            Seasonally copper is strong in the first few months of the year. Here I see tax loss selling creating good buy opportunities unlike the precious metals. Also having excelsior move into producer status at this time is interesting as well

            Nov 26, 2019 26:45 AM

            I actually see more tax loss selling in a number of Gold & Silver miners lately than in the base metals. (and I’m not talking about the larger mid-tiers in the ETFs GDX or GDXJ).

            The base metals have been pulling down for the last year 1/2 and it will likely take them longer to rebound, but we have seen a very tiny uptick in Zinc & Lead prices, but not so much in Copper. Most Copper stocks (Excelsior withstanding) have had their rear ends kicked in for over a year and are at dismal valuations lately.

            Look at the over-hyped SolGold (SOLG) and Cornerstone Captial (CGP) that have gotten royally stomped on since their breakout moves in 2017. Some of that is due to all the poor management decisions and company infighting.

            Look at the pullbacks this year in companies like Turquoise Hill, Triology Metals, Regulus, Kincora, Kutcho, Copper Fox, Bell Copper, Black Sea Copper, Amerigo Resources, Chakana Copper, Constantine Metals, Cordoba, Highland Copper, Taseko, etc….

            Copper may be experiencing a little tax loss selling now, but it is likely investors already hit the escape hatch earlier this year (I know I sure did) and took their lumps long before now.

            Again, if we get a US/China “Phase 1” deal that would be constructive for Dr. Copper, but there has not been much buying interest in the sector.

            If the US Dollar rolled over that would also help.

            I just don’t see much of rush to get into Copper stocks here compared to the PMs which have a far more reliable history of having a Q1 Run from late December into Jan and Feb.

            Ever Upward!

            Nov 26, 2019 26:53 AM

            I will add on the larger macro trend, over the next 1-3 years I do expect Base Metals like Copper, Zinc, Lead, Nickel, Platinum, to recover and head much higher in price, but expect it to be a gradual all boats rise with the tide scenario… a steady climb, but nothing akin to a frenzy.

        Nov 26, 2019 26:00 AM

        And I really don’t understand osisko and where it trades based on what they have discovered so far……but then again I’m dumbfounded by most things these days. 🤞

          Nov 26, 2019 26:27 AM

          Agreed Wolfster. Initially Osisko Mining was over-valued based on the Osisko Gold Royalties hype premium, but then over the last 2 years their exploration team has continued to nail high grade intercepts over and over again, and they just didn’t get rewarded for all their good work with multiple drills turning and growing the deposit. They sold off when the took over Beaufield (which is normal for the acquiring company for forking out cash or shares) but then didn’t recover much higher. It is odd.

          I’m invested in their neighbors Bonterra, as mentioned above, because I see more immediate upside leverage and the potential of a Kirkland Lake takeover down the road, and they have a mill (which Osisko doesn’t) which is key.

          However, both companies Osisko mining and Bonterra should be valued higher than they are currently, especially when we such dramatic moves in other Drill Plays and hot exploration narrative stocks that haven’t had near the repeated success.

          One of these days Mr Market will wake up from his slumber and these will get rerated higher based on the size/grade of these deposits, and the rising metals prices.

    Nov 26, 2019 26:49 AM

    Peter Hug – When Gold Goes Above $1550, Investors Will Rush in for the Next Leg Higher

    by @PalisadeRadio on 26 Nov 2019 #AudioInterview

    https://ceo.ca/@palisaderadio/peter-hug-when-gold-goes-above-1550-investors-will-rush-in-for-the-next-leg-higher

    Nov 26, 2019 26:47 AM

    Today’s low for GDX happened at a PERFECT place for a low. It better hold…
    https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=5&dy=0&id=p08776977053&a=702751320

    Nov 26, 2019 26:31 PM

    The next time you talk to Quinton Hennigh can you ask him what is holding up the Native agreements at Egina?