Hour 1 – A Focus on Resource Stocks and Building a Hit List For Tax Loss Selling

November 30, 2019
Full First Hour

I hope everyone had a very happy Thanksgiving down in the US!

On the first hour I focus on the resource sector. Topics range from metals to energy and thoughts on the two multi-million to billion dollar deals in the resource sector. Please keep in touch by emailing me at

Exclusive Company Interviews and Commentary This Week

Segment 1 and 2 – Jesse Felder
Segment 3 – Josef Schachter
Segment 4 – John Kaiser
    Nov 30, 2019 30:32 AM

    Thanks and Seasons Greetings to one and all.

    Nov 30, 2019 30:12 AM

    Cory & Big Al and all the KER contributors – thanks for another great week of shows.

    Hope everyone had a good Thanksgiving holiday and long weekend.

    Nov 30, 2019 30:12 AM

    marc friedrich @marcfriedrich7

    “New record at the stock market and in the #repo market! Everything is awesome? Why does the #FED step in every night? They put $283 billions in the system since September. That’s why we see new record highs at the Dow. Everything is manipulated but don’t call it #QE.”

    Nov 30, 2019 30:57 AM

    It was unfortunate that money flowed into cannabis stocks so easily for so long.
    Like during boom times in mining stocks, many charlatans with a good spiel, but no competence at all, have money thrown at them.
    This is a new industry; I think we have all underestimated the teething problems that would occur as laws changed and we reached a steady stable state upon which growth could be steadily built. We are just not there yet, but we will get there.

    Nov 30, 2019 30:01 AM

    There is a China problem that will effect the world:

    Nov 30, 2019 30:11 AM

    The US signed the Human Rights and Democracy Act into law, which requires the US to continue to monitor Chinese actions regarding Hong Kong citizen’s rights and freedoms. China issued the US a stern warning that if it continues to support a pro-democracy movement in Hong Kong, they will take “firm counter-measures.”
    (The first shoe to drop)
    The Chinese foreign ministry stated yesterday that the US was distorting the truth and disregarding the facts.
    (Second shoe is in the air)

    Hong Kong leader Carrie Lam is currently in Thailand in an attempt to bolster the ties between the two nations. She was iterating that the city is functioning well under the one country, two system rule of law.
    (Just added for comedy, since China is actually trying to have only one system of “law”.)

    Nov 30, 2019 30:17 AM

    Thanks for the show KER team!

    Nov 30, 2019 30:26 AM

    The over-weekend repo is $316 Billion.

    Bank trust and liquidity problems.

    Then there’s China:

    Remember International Banks doing business in U.S. can belly-up to the U.S. repo window.

    Nov 30, 2019 30:28 AM

    Talk about a Nanny-State:

    UK does not have a Constitution > No Privacy, No Freedom of Speech > NO RIGHTS.

      Nov 30, 2019 30:29 AM

      Your statement plays right into the sorcery that is government. Natural rights do not vary around the world, peoples and their governments do. Logically, rights are not granted (constitutionally or otherwise), they just are. Those who don’t recognize them are immoral or, in some cases, amoral.
      Privileges are granted, not rights. Will the masses ever wake up to this fact?

        Nov 30, 2019 30:15 PM

        Excellent Matthew.

        Nov 30, 2019 30:38 PM

        Agreed. Natural rights exist for any conscious people, and should be obvious.

        All governments can do whether elected or forced on the citizens are grant privileges, or create more restrictions. It is sad people give away so much of their inherit self-contained power, turning this direction over to human thought constructs and institutions like governments, military/police, religious groups, health providers, etc… They want someone or something else to save their rear ends, playing the victim of life, rather than owning their lives and taking personal accountability for all the choices they’ve made.

        After tens of thousands of years of social interaction, the human family still has not woken up to the basic natural rights all men and women are born with.

        We actually need less government, less laws, and fewer lawyers, but every year people clamor to external groups and organizations to impose more federal or state laws over the populace, which merely limits true freedom, strengthening the cage – all under the guise of doing the right thing.

          Nov 30, 2019 30:16 PM

          This probably fits better in the “POLITICS” section, but it applies to question of Constitutional Rights.
          It appears to be the policy of Socialist Governments to be more controlling.
          For example the Labour Party wants to eliminate all private schools in the U.K.
          schooling is a country issue, not a Union issue, so Wales has already instituted a set of regulations making it almost impossible to home school, and England and the Isle of Man look like they will try the similarly. In Scotland, they tried and failed so far……until the next time.

          Nov 30, 2019 30:22 PM

          More simply put:
          You can create a child, but increasingly the Government considers the child as their possession.
          So much for natural rights.

            Nov 30, 2019 30:24 PM

            Alas, this is where the problem is…. when a government or people fails to recognize natural rights, and think they should control areas they shouldn’t be meddling in.

        Nov 30, 2019 30:11 PM

        I wonder how long ago guns would have been restricted out of the hands of most citizens in the U.S. were it not for the second amendment.
        It is a lot easier to protect rights from Government rules and regulations with a written Constitution to point to.

        If you ask any Parliamentarian in the U.K., they will say that the U.K. has a Constitution, but that it not explicitly written, but contained in the body of law precedents.

        We all know how judges can mutate laws.

    Nov 30, 2019 30:48 AM

    Great show. I was very interested in hearing about the KL takeover of DGC. However very disappointed that the one thing the 3 left standing in the area have in common is never mentioned and I wonder why. In fact the guy packing the Jr resource sector around on his back is hardly ever mentioned . That being Eric Babe Ruth Sprott. A major shl in BAR KL AND WM. Hopefully Korelin will report the whole deal someday.

      Nov 30, 2019 30:28 PM

      Good thoughts Monty, and yes Eric Sprott has been very active in the Jr Mining, in particular has nice positions in this whole area play through (KL) Kirkland Lake has picked up (DGC) Detour Gold, and Sprott has nice positions in (BAR) Balmoral, and (WM) Wallbridge. It is interesting that Sprott sold a lot of his KL position at higher prices to go further down the food chain into smaller companies. Well played on Eric’s part.

      Nov 30, 2019 30:38 PM

      Sprott probobly is holding up some jr companies and their share prices.
      If he stopped, maybe there would be some bankruptcies and a bottoming in the market.

      From which point we could all pile in and make coin. 😉

        Nov 30, 2019 30:54 PM

        Well I sure appreciate Eric’s support of the space because he came into a number of stocks I hold to support their growth so that they didn’t go under …. like – (BAR) Balmoral, (USAS) Americas Gold & Silver, (EXN) Excellon, (MMG) Metallic Minerals, (JAG) Jaguar Mining, (KTN) Kootenay Silver, (DV) Dolly Varden, (DSV) Discovery Metals, (PGM) Pure Gold, (BTR) Bonterra, etc…

        I’m not sure who would have made money if these companies had crashed, but they now have a chance to survive and then thrive with the new cash.

        Ever Upward!

          Nov 30, 2019 30:04 PM

          Interview: (USAS) (USA) Americas Gold & Silver – Darren Blasutti

          121 Mining Investment New York Autumn – Nov 12, 2019 #VIDEO

            Nov 30, 2019 30:09 PM

            Corporate Presentation: (USAS) (USA) Americas Gold and Silver Corporation

            121 Mining Investment New York Autumn 2019 #VIDEO


            Dec 01, 2019 01:24 AM

            (DSV) (AYYBF) Discovery Metals Reports Q3 2019 Financial and Operating Results

            by @nasdaq on 28 Nov 2019

            > Q3 2019 OPERATING HIGHLIGHTS:

            “Announced an arrangement agreement with Levon Resources Ltd. (LVN) on May 30, 2019 and completed the Transaction on August 2, 2019, acquiring all of the issued and outstanding common shares of Levon. Levon’s flagship asset was the Cordero project.”

            “Based on more than 132,000 meters of drilling, Levon estimated an Indicated Mineral Resource of 990 million tonnes grading 32 g/t AgEq and an Inferred Mineral Resource of 282 million tonnes grading 56 g/t AgEq.”

            “Begun re-logging and re-interpretation of the geology of the 132,000 metres of historic drill core in August 2019. This program is currently approximately 50% complete.”

            “Mobilized for a Phase 1 diamond drilling program on September 10, 2019, five weeks ahead of the originally anticipated start date. The Company plans to drill approximately 30,000 to 35,000 metres by the end of 2020.”

            “Completed a non-brokered private placement of common shares raising $9.0 million, including a $7.7 million investment from Mr. Eric Sprott, on July 25, 2019.”


            Dec 01, 2019 01:57 PM

            (MAI) (MAIFF) Minera Alamos: “Luck Is What Happens When Preparation Meets Opportunity”

            Posted by Kai – Oreninc Market Insight

            “The first phase has started, and opportune investors are already up over 100%. I am repeating myself now: don’t worry. There is plenty of upside left for potential new investors into MAI.v. After our recent site visit to Santana, I am more convinced than ever before…”


            Dec 01, 2019 01:00 PM

            #Timeline – Minera Alamos (MAI) (MAIFF)

            November 26, 2019 – Pete Panda

            Minera Alamos is an advanced-stage exploration and development company with a growing portfolio of high-quality Mexican assets, including the La Fortuna open pit gold project in Durango with positive PEA completed (permits awaiting issuance) and the Santana open pit heap-leach development project in Sonora with test mining and processing completed with approved EIS.

            Upcoming catalysts: Financing news on Santana / Assays


        Nov 30, 2019 30:40 PM

        Just for arguments sake, if the company that couldnt stay in business without Sprott went broke, someone else that could better manage would take over.

        Making my share purchase more likely to make coin.

        Not that the way things work bother me, it is what it is.

        I gotta agree with O leary tho, jr mining management is some of the worst business management in history.
        How can ya tell? They always need money.

          Nov 30, 2019 30:57 PM

          Those companies mentioned above would have all stayed in business without Sprott’s capital injection, but things may have deteriorated more for them and current shareholders would have been diluted more at a lower shareprice, so Sprotts buying staved off a worse decline.

          There have also been plenty of times no other white night company came to the aide of a distressed company and they just went completely bankrupt, and nobody won. That isn’t really a good strategy for investors making coin.

          The mining business is really a very cash-intensive business, and for explorers and developers not generating revenues yet, they need to spend money to create value, but often times companies spend more capital than the value they create and that is why 99% of deposits never become economic mines.

          In the case of distressed miners or producers that just had a distressed property, the new capital allows them to move forward their timelines on getting those operations more efficient and optimized, so that is plus if they want to catch the coming upswing in metals prices during this cycle, so I see that as another win for shareholder in those companies.

            Nov 30, 2019 30:01 PM

            Overall mining is a terrible business, but the companies that Sprott invested in are some of the few that are undervalued, but show some real upside potential and torque for rising metals prices.

            Nov 30, 2019 30:36 PM

            ES often says he likes to buy them cheap.

            Nov 30, 2019 30:46 PM

            Agreed. He rode KL all the way up to sell it near the highs, and then bought a bunch of Jrs at much lower prices and is riding them higher. Seems like Eric has the right idea and that’s why he’s a Billionaire. 🙂

            Nov 30, 2019 30:02 PM

            I kinda think most people would like to buy cheap, but I guess that doesnt happen alot.

            Bob keeps saying, investing is real simple, buy whats cheap and sell whats expensive.

            I know when I had my stores, I used to say “get em while theyre “hot” thats because when they were not “hot” they wernt worth anything. 😉

          Dec 01, 2019 01:34 AM

          Why Gold Mining Companies Habitually Destroy Capital (w/ James Rasteh)

          Real Vision Finance – Oct 17, 2019

          “James Rasteh of Coast Capital Management is a deep-value investor who has turned his sights on the gold miners. He points out that these stocks have destroyed billions of dollars in capital, and have chronically underperformed the gold price, even during rallies. According to Rasteh, the managers are the problem, and yet they have paid themselves millions. He says it’s now time for a change.”

            Dec 01, 2019 01:37 PM

            I guess I shoulda saved it, I just read an article that explains how to determine if management is incompetent or is mining the investors.
            There are alot of risks investing in jr mining, but those payoffs…..
            I dont mind rolling the dice.

            I think there are loads of good bets out there right now, Ive stopped researching companies as I dont have the capital to invest in them all as it is.

            One thing, when gold goes up it will raise all boats, as Bob says, anything with the word gold in it should go thru the roof, thats what happened the last time gold went to about 1900?.

            I expect the same thing to happen again.

            Dec 01, 2019 01:46 PM

            I agree that many investors are as incompentent as the terrible managment teams they pour money into, and that eventually, when all boats do rise even turkeys will fly.

    Nov 30, 2019 30:55 AM

    A very good sign: SILJ:GDX golden cross and “outside day” reversal following tests of support…

    Nov 30, 2019 30:01 PM

    Premiers Ford, Moe and Higgs To Make Announcement On Nuclear Reactors

    CBC News · Posted: Nov 29, 2019

    “The premiers of Ontario, Saskatchewan and New Brunswick will make a joint announcement on Sunday about a collaboration between the provinces on small, modular nuclear reactors.”

    “About 8.6 per cent of Canada’s electricity comes from coal-fired generation. In New Brunswick that figure is much higher — 15.8 per cent — and New Brunswick Premier Blaine Higgs has said he worries about how his province’s energy producers will be hit by the federal carbon tax.”

    In October, Moe suggested that “the use of liquefied natural gas, renewable energy and nuclear power could help his province meet its carbon emissions reduction targets.”

    The federal government describes small modular reactors (SMRs) as the “next wave of innovation” in nuclear energy technology and an “important technology opportunity for Canada.”

      Nov 30, 2019 30:10 PM

      Personally, I’ve been adding to my Uranium positions over the last 2 weeks, and plan to add just a bit more over the next 2 weeks. Seasonally the Uranium stocks are dead in Nov/Dec but then tend to rally into late Dec, Jan, and early Feb.

      (UUUU)/(EFR), (URG)/(URE), (UEC), (NXE), (DNN)/(DML), (AEC)(ANLDF), (UEX)/(UEXCF), (SYH)/(SYHBF), (CCO)/(CCJ)

      Dec 01, 2019 01:58 PM

      CBC News @CBCNews

      “Premiers Ford, Moe and Higgs announce joint nuclear reactor project” #VIDEO

    Nov 30, 2019 30:25 PM

    Interview: (AXU) (AXR) Alexco Resources – Clynt Nauman

    121 Mining Investment New York Autumn – Nov 12, 2019 #VIDEO

      Nov 30, 2019 30:30 PM

      Corporate Presentation: (AXU) (AXR) Alexco Resources Corporation #VIDEO

      121 Mining Investment New York Autumn – Nov 12, 2019

        Nov 30, 2019 30:36 PM

        (AXU) (AXR) Resource Could Be Very Fast In Profitable Silver Production

        Nov 18, 2019 – Swiss Resource Capital AG #VIDEO

        “Interview with Chairman & CEO Clyntan Nauman on the Bermingham Silver Deposit, which can be in production in Q4 2020. Alexco Resources is exploring below the existing resource with promising results. The company is growing its Environmental business very fast.”

          Nov 30, 2019 30:38 PM

          Brad Thrall, President of (AXU) (AXR) Alexco Resource Corp at the Metals Investor Forum

          Nov 15-16, 2019 – #VIDEO

            Nov 30, 2019 30:39 PM

            Chen Lin talks to Brad Thrall, President of (AXU) (AXR) Alexco Resource Corp

            Nov 15-16, 2019 Metals Investor Forum – #MIF #VIDEO


            Nov 30, 2019 30:43 PM

            There have been a number of other folks here on the KER blog that have discussed Alexco over the year, so hopefully these recent video interviews and corporate presentations will be a good watch for a few folks here. Cheers!

        Nov 30, 2019 30:41 PM

        Alexco has definitely hit the investing circuit in the last month to tell their story of developer moving into production, and their success in exploration of high-grade Silver.

        I have a nice position, but have considered even adding more as things have dipped down here at year end.

    Nov 30, 2019 30:07 PM

    Now I certainly don’t follow as many companies as most on here do so my scope may be narrow……the base metals ,especially zincs that I follow ,seemed to have all bottomed and some nice buying has come in.

      Nov 30, 2019 30:13 PM

      Yep, we may have just plumbed the lows in the Zinc stocks….. Great time to accumulate that beat up sector for the long game.

    Nov 30, 2019 30:40 PM

    Hi Ex!
    Im with you all the way! AXU is looking like a timebomb! Next year will be nice with a production decision looming and a higher silverprice in this stage 2 bull market. There is a lot of good reasons investing in AXU, high grade former producer, a lot of exploration potential in a big big land package, already making money with their growing enviromental business, top notch leadership with great geologists. Highest beta of all silver producers over 70 % revenue from silver.
    I like it a lot and its in Yukon! I feel it could even pay a nice dividend in the future.
    Im fully invested in AXU and im relaxed and sleep well at night and waiting for the last piece of the puzzle, the water permit.
    Will take some profit when silver hits an Intermidiate cycle top next year in the spring.
    /good luck

      Nov 30, 2019 30:12 PM

      Blue – very well stated regarding AXU –> and agreed on all points:
      1)future exploration potential,
      2) production in 2020,
      3)mill already in place,
      4) 70% of revenue from silver being a rarity these days, and
      5) fantastic revenues from their environmental remediation business.

      Bring on 2020!

        Nov 30, 2019 30:25 PM

        Funded well enough to get to production???

          Nov 30, 2019 30:15 PM

          They have revenues coming in from their environmental business, and a credit facility with Sprott, and about 12 Million in their war chest. I believe Clynt said they’d need $25 Million to get into production, and I’m not sure if they’ll do that with the cash, credit facility, and revenues from the environmental business, or if they’ll raise that in through debit or equity separately. More than likely a combination of factors.

            Nov 30, 2019 30:17 PM

            I guess the key is that unlike 99% of most explorers or developers they’ll actually be going into production, have a mill, have the declines already dug into Flame & Moth and partially into Bermingham, and are most of the way there already. They are just lacking their final permit, so they can make the production announcement, and that is when they’ll announce how they are going to raise the capital to finish the remaining constuction and equipment needed.

            Dec 01, 2019 01:08 AM

            I also got the impression in one of those interviews above that (AXU) is considering spinning out their environmental business (with about 80 emps now) and he said that way it would bring current shareholders more value. That is probably a good idea, except that currently it really helps Alexco with incoming revenues that they’ve poured into exploration and they hit paydirt. I’d almost prefer them to keep it inside of AXU, and not sure what the breadth of investor appetite is for stand-alone companies doing longer term site remediation work?

            Anyway, it wouldn’t surprise me if they spun out the enviornmental group separately soon, and I’m sure existing shareholders will get shares in that new SpinCo, but I’m not sure how many investors will hang onto those longer term. For now, I hope they keep bringing in the revenues off that side of their business to help out with Alexco buildout and any remaining contruction to go into production. We’ll see what track they end up taking soon enough…

        Dec 01, 2019 01:52 PM

        Brad Thrall of AXU kind of suggested that the environmental company may be a spin off if/ when sometime after reaching production for maximum shareholder benefit in his interview with Chen Lin

          Dec 01, 2019 01:51 PM

          Thanks Marty. Yes, it would be wise for AXU to use those incoming revenues from the environmenatl business to assist with getting into production, and to fuel more exploration, before they spin it out separately. They are at an interesting phase of the mining cycle.

      Dec 01, 2019 01:14 PM

      Is It Finally Time to Load Up on Silver?

      Matt Smith | November 30, 2019

      “While some pundits claimed that silver was poised to rally sharply, it has failed to do so, seeing it currently trade at around US$17 ounce, a mere 9% higher than its price at the start of 2019.”

      “Despite pulling back since early July 2019, 86 ounces of silver are required to buy one ounce of the yellow metal. Typically, this indicates that silver is heavily undervalued relative to gold, meaning that it’s time to purchase the white metal.”

      “A positive development for silver is the improved outlook for the global economy, as the white metal is as much an industrial commodity as it is a precious metal.”

      “One silver miner that’s delivering considerable value is Silvercorp Metals (TSX:SVM)(NYSE:SVM). The miner even after gaining a whopping 124% since the start of 2019 appears ready to unlock greater value for shareholders.”

      “Silvercorp is one of the lowest cost silver producers among miners, reporting cash costs of negative US$2.72 per ounce sold and all-in sustaining costs (AISCs) of US$4.15 an ounce.”

        Dec 01, 2019 01:41 PM

        Overall many Silver miners had an OK year.

        This is just a YTD look at a dozen smaller to mid-size Silver producers, and some are even up triple digits, but it spans the spectrum.,EXN.TO,IPT.V,ASM.TO,EDR.TO,FVI.TO,FR.TO,SVM.TO,USA.TO,GGD.TO,GPR.TO,CDE&p=4&O=011000

        Dec 01, 2019 01:37 PM

        Silver corp was not a bad choice to beat bank interest. 😉

        Dec 01, 2019 01:54 PM

        Re: “A positive development for silver is the improved outlook for the global economy, as the white metal is as much an industrial commodity as it is a precious metal.”

        BS. No silver bull market has ever been driven by industrial demand. There’s way too much above ground silver (equal to decades of production) for the silver price to respond to an improved economic outlook the way copper does. Investment demand is the primary driver and it increases when the inflation-adjusted economic outlook is not great, like now and like the 1970s when it went up 35x. It remains mini gold.

    Dec 01, 2019 01:06 AM

    Great to see the mention of BAR. Value with Martin and now Area 50.

    Dec 01, 2019 01:54 AM

    Thanks to everyone posting on AXU! It is definitely an exciting time for the company.

    Dec 01, 2019 01:56 AM

    The Dow finds itself at strong resistance but I think it will be overcome…

    It closed November at a convincing new all-time high above its monthly Bollinger Bands and has a P&F price objective of 35,500 to go with the brand new monthly MACD buy signal. If December confirms this action, Q1 2020 will probably surprise a lot of bears.

    Dec 02, 2019 02:31 AM

    Hi Ex, I picked up some Harte Gold this morning, interesting news release this am.

    Dec 02, 2019 02:02 AM

    Novo has built a large base from which to launch its next move higher and that launch appears to be coming soon.

      Dec 02, 2019 02:06 AM

      Thanks, Matthew. I hope Novo goes back to 7 next year, but I may not sell if it does.
      The potential is too enormous.

        Dec 02, 2019 02:07 AM

        You can always sell part of it to “kill the urge”!

          Dec 02, 2019 02:43 AM

          But if I sell some Novo gold will go to 5K or 8K and Novo will prove up another Witwatersrand basin and go to 100 or more. I am afraid to sell any at all.

            Dec 02, 2019 02:01 AM

            Then I’d let your position size determine your actions. Predictions are tough when they deal with the future so I’d only leave the whole position at risk if you can afford to lose all of it (and I have a feeling you can).

    Dec 02, 2019 02:12 AM

    Thanks for your NOVO charts. I hope you are right as NOVO is my largest position. I still think it has some short term down drift after the recent top. I am thinking it might drift lower well into the first quarter, but I like your more optimistic viewpoint.

    Dec 02, 2019 02:39 AM

    IPT has very little downside potential here, in my opinion.

    Dec 02, 2019 02:52 AM

    Yes Matthew!
    I think IPT is at a gentlemans entry at 0.30 cent, a second chance to participate in this bullmarket.

      Dec 02, 2019 02:54 AM

      Blue, I completely agree.

    Dec 02, 2019 02:37 AM

    Wesdome should have little trouble reaching its P&F chart price objective of $11…

    *I do not own it.

    Dec 02, 2019 02:17 PM

    Brixton is looking pretty good today. Charts look interesting.