Hour 1 – This Hour Is For The Resource Investor
This first hour I feature the guys from Exploration Insights Joe Mazumdar and Brent Cook. We also get an update from O3 Mining and a technical look at the markets from Allison Ostrander. It was another good week for US equities and another sideways week for most of the metals.
Be sure to check out all the daily editorials throughout the week and the many company updates that I released. Keep in touch by emailing me at Fleck@kereport.com.
- Segment 1 – Brent Cook from Exploration Insights kicks off the show with a discussion on the junior metals stock sector. He shares what Joe and him look for in companies and some of the stories he likes this year.
- Segment 2 – Joe Mazumdar from Exploration Insights continues our focus on metals stocks expanding to the larger explorers and mid-tier companies.
- Segment 3 – Allison Ostrander, Director of Risk Tolerance at Simpler Trading switches or focus to the US equity market and shares the levels to watch for those wanting to ride the trend higher.
- Segment 4 – We wrap up the first hour with an update from O3 Mining (TSX.V:OIII). Jose Vizquerra, President and CEO of O3 recaps the recent drill results and outlines the funded 50,000 meter drill program ongoing in Quebec and Ontario.
Exclusive Company Updates This Week
- TriStar Gold – Full Corporate Overview – The Castelo de Sonhos Project, Management Team, Share Structure, and 2020 Plans
- IsoEnergy – Updates on the current drill program and comments on the Uranium sector
- Minaurum Gold – A Complete Company Overview – The Alamos Project and Drill Plans For This Year
- Skeena Resources – Recapping recent high grade drill results at Eskay and updating the 2020 drill program
- Irving Resources – A discussion on the deep hole drill result
- GR Silver Mining – Previously GoldPlay Exploration – Updating Recent Exploration Results and 2020 Plans
- Novo Resources – Recapping the recent bulk sampling results and a discussion on general project economics
- Great Bear Resources – An extended interview focusing on the large drill program and recent high-grade results
Yes..thank you to the KER…
And here is something I know you boys will find interesting…an interview with Chris Cole on allocation, volatility, etc. BUT put on your THINKING CAPS because there it is a heavy duty discussion. Also, another interview on the “silent depression.”
Demetri Kofinas @CoveringDelta on Twitter 1:18 PM · Feb 14, 2020
“The idea that prices can diverge from fundamentals or that fundamentals no longer matter is not new; it’s something we often see during the late stages of a bull market. What appears unique about the present moment is the indifference with which investors are pricing assets.”
https://twitter.com/CoveringDelta/status/1228398106603085824
Demetri Kofinas @CoveringDelta – on Twitter Feb 14, 2020
“This is an excellent take on a broader phenomenon that I’ve begun to refer to as “market nihilism,” a philosophy that treats objects of speculation as though they were intrinsically worthless.”
https://twitter.com/CoveringDelta/status/1228398099896393729
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Yep, it sounds like how the generalist investors have been viewing the resource sector.
We live in crazy times:
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White House Considering Incentives To Spur Stock Buying
•Feb 14, 2020
“As part of a forthcoming package of proposed tax cuts, the White House is considering ways to incentivize U.S. households to invest in the stock market, according to four senior administration officials familiar with the discussions. CNBC’s Kayla Tausche reports.”
Hi Ex, The Federal Reserve authorities are in an unhappy predicament. They have only one way to go, they can’t raise the interest rate. This would force up the price of money for speculative purposes, they have been printing like crazy and still they are worried. Furthermore they fear gold and the accumulation of gold in The United States, if they started buying precious metal it would send a signal to the rest of The World that the dollar is sick. Speculation and The War Machine are clearly absorbing more and more of the surplus funds of the country. They have tried tax cuts hoping the money will flow into the everything bubble, the stock market. The stock market is the everything bubble because it hides the fact that America is awash in debt. Lastly Trump needs to get re-elected, so bring on the incentives to spur stock buying, with all the other incentives the only option they have left is to allow their citizens to purchase securities on the open market with their credit cards. Then there is all the forced liquidation still to come as broker’s accounts are straightened out. The banks will need more collateral, what a mess? LOL! DT
Agreed on all points DT. Well-stated and they trying to force the inflation and money flow in one direction – the ever increasing stock market bubble.
they = they’re
The Wealth Effect
By Daniel Liberto – Jun 26, 2019
> What is The Wealth Effect?
“The wealth effect is a behavioral economic theory suggesting that people spend more as the value of their assets rise. The idea is that consumers feel more financially secure and confident about their wealth when their homes or investment portfolios increase in value. They are made to feel richer, even if their income and fixed costs are the same as before.”
Bubbles away!!!
No step right up boys…and enter the casino…
Is that one of Trump’s casinos? Maybe Adelson’s?
😮
Copper Market Is A Coiled Spring
Feb 9, 2020
“Just under half of copper demand is for the electronics industry. The rest is used to feed a range of industrial machinery, vehicles and consumer products. For most, no other raw material can be substituted for copper.”
“According to a report by McKinsey Global Institute, primary copper demand could grow to 31 million tonnes by 2035, a 43% increase over today’s 22 million tonnes (Mt). Total mined production in 2019 was just 20Mt, states the US Geological Survey. McKinsey predicts the majority of future demand will come from China, where per capita copper consumption will likely rise from 7.2 kilograms per person to 11-12 kg by 2035.”
https://aheadoftheherd.com/Newsletter/2020/Copper-market-is-a-coiled-spring.htm
Every house, hotel and motel, farm, condominium, industrial and commercial building, shopping mall, as well as highway rest stops will need electric car chargers. That means a massive infrastructure build out to accommodate electric cars. Copper will be needed as far as the eye can see. DT
China copper treatment charges hit 8-month high as smelters battle virus
Reuters | February 11, 2020
https://www.mining.com/web/china-copper-treatment-charges-hit-8-month-high-as-smelters-battle-virus/
Stupid linear extrapolations are alwayd dangerous.
I agree copper will be in demand for electric vehicles, but…..
Electric vehicles will not replace gasoline vehicles at a rate that exceeds normal obsolescence Just my 2c.
CFS that article discussed 50% of Copper being used in Electronics, and then the rest being utilized in “industrial machinery, vehicles and consumer products.” It wasn’t a linear extrapolation about EVs, but more about the continued electrification of the planet. That is a line upwards one can extrapolate.
Do DT and Ex – How are you guys playing copper or are you just watching right now?
I’m not heavily invested in Copper at present but have a nice watch-list with 175 companies on it, and about a dozen out of that list that interest me.
Currently my only Copper exposure is a byproduct of Gold or Silver miners. For example, I just started a position in Sierra Metals that has a significant Copper component along with Silver/Gold/Zinc, or McEwen Mining has a big Copper project in their portfolio, or Americas Silver will kick on their Copper circuit in higher Silver prices and produce more than they currently do, or Treasury Metals is a large Gold/Copper development story.
However, I did finally take out a stake in SolGold recently, now that it has pulled way back down to comical levels, because it is truly a world-class Copper deposit in Ecuador. I also have a small legacy position in the Copper explorer Cordoba resources in Colombia, that is underwater, but has been on the move lately.
Some copper companies that look interesting to me are: Regulus Resources (which I recently owned but pulled profits to booster the silver miners when they sold down), Excelsior Mining, Trilogy Metals (mentioned by Joe on this weekend show), Atico Mining, Amerigo Resources, Altiplano Minerals, Avanco Resources, Entree Resourcres, Sama Resources, Sandfire, Taseko, Trigon Metals, Crown Mining, Kutcho Copper, Kincora Copper, Chakana Copper, Tintina Resources, Ero Copper, Mundoro Capital, Nicola Mining, Quaterra Resources, Rambler Metals, and a few more more speculative explorers.
I guess if I could only pick one Copper company for the next cycle it would be Regulus, and I intend to buy it back but feel I’ll get more leverage in the Gold and Silver miners for the near to medium term than the copper miners.
The reason I took out a position in SolGold at present is that is just seems so undervalued compared to where they were trading when they had defined less, but had a much higher valuation. As Lundin Mining continues with Fruita Del Norte in Ecuador, it will only put SolGold/Cornerstone Capital further into the crosshairs as the next big Copper/Gold development project to turn into a mine.
http://www.solgold.com.au/wp-content/uploads/2020/02/SolGold_Corporate_PPT_2020-Jan21.pdf
SolGolds Alpala is a monster project. Looks similar to Norther Dynasty’s Pebble. Why is Northern Dynasty not on your list? They are even cheaper than SoldGold?
I believe Northern Dynasty will continue to see push-back from environmental groups due to the salmon spawning concerns (like they have for over a decade) and there is also the huge capital component to putting Pebble into production, so it is less attractive to me, even though the deposit itself is extremely well endowed with metals.
Alpala/Cascabel for SolGold seems much more likely to get into production this next cycle for Copper/Gold and the success of Fruta del Norte from Lundin Mining is helping the cause for them in Ecuador.
EX about about Western Gold and Copper WRN?
I own Excelsior Mining 😃
Taseko I have owned and is on my watch. If cooper goes up, they are quite cheap
Yeah, Taseko looks attractive at current levels, and is similar to Excelsior Mining in that they are both using the insitu mining method to extract the Copper.
Don‘t forget Gibraltar and New Prosperty (13 million ounces gold + 5 billion pound copper)
Yeah, their 75% stake in Gibraltar is a monster deposit if they get the open pit mining approved. I was think of Taseko more along the lines of their Florence Copper project. They also have their Aley Niobium Project in BC, that would be interesting to sell-off or JV out to a specialty metals company.
New Prosperty is the monster -:) Gibraltar is their producing mine
Taseko is actually a producer with the valuation of a developer + a monster
They have some first nation issues with New Prosperty
Regulus is in a good location and has nice Gold credits
Here’s the latest Regulus Resources Corporate Presentation:
https://www.regulusresources.com/site/assets/files/4097/january_2020_corporate_presentation.pdf
Do not Do.
So not Do
Lol 😳
Just call me FFC (Fat Finger Charlie)! 😂😂
FFC – do what ya gotta do…. 😉
Friday’s high for OR managed to exceed Tuesday’s high by a penny:
https://stockcharts.com/h-sc/ui?s=OR&p=D&yr=1&mn=3&dy=0&id=p26321407698&a=720398560
Yes, it was a nice close to the week. I am thinking it might pull back for a day or two and then maybe blast through the 50 WMA on the earnings announcement. I also think USAS is acting very well.
USAS looks objectively excellent. Notice the close above the Bollinger Bands in addition to the other good stuff:
https://stockcharts.com/h-sc/ui?s=USAS&p=D&yr=1&mn=0&dy=0&id=p56064722086&a=676667084
Thanks. Of all the silver stocks I own this one looks most ready to go. What do you think of ISVLF? It looks to me like it could go either way here. No plans to buy more unless it drops down further.
…speaking of USAS, check out these charts from Graddhy. He’s a good technician that just outlined why he believes Americas Gold & Silver is getting ready to break out to the upside:
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Graddhy – Commodities TA+Cycles @graddhybpc on Twitter:
“$USA.TO – As said, it looked ready. This quality play is now moving up the right side of my green rounded bottom for pm that I have pointed out for several months is in the making. Bullish engulfing reversal after having BT EMA30 for weeks. $USAS”
Edward Gofsky @EdwardGofsky – on Twitter 10:11 PM · Feb 14, 2020
“$USA.TO Silver Stock. Getting to the apex of the {Triangle} Notice the {H&S} inside. $4.42 triggers long. ” #Chart $USAS
I think the odds favor the whole sector moving up and ISVLF’s chart is consistent with that. Impact never seems to make obvious lows but it looks better now than it did at its June low.
Here’s a line chart to remove some noise:
https://stockcharts.com/h-sc/ui?s=ISVLF&p=D&yr=1&mn=0&dy=0&id=p14988837325&a=721358474
It gained 5% versus silver this week:
https://stockcharts.com/h-sc/ui?s=ISVLF%3A%24SILVER&p=W&yr=4&mn=0&dy=9&id=p78988029173
The picture is mixed but I score it net bullish:
https://stockcharts.com/h-sc/ui?s=ISVLF&p=W&yr=3&mn=11&dy=0&id=p24448571309&a=642610362
X marks the spot: AG is at an interesting confluence of support/resistance…
https://stockcharts.com/h-sc/ui?s=AG&p=D&yr=1&mn=10&dy=0&id=p59815854851&a=578542926
It would be nice if it was support (and not resistance).
The red fork IS providing support. Yes, there’s a chance!
Yes, even the bottom prong of the black fork may offer some support (even through it dipped just a little below it recently), while current pricing is in a high congestion zone.
(ABRA) (ABBRF) AbraPlata Resource Corp is a Silver Developer/Explorer down in Argentinas that has traded sideways for much of last year as they righted their ship, and spent the 2nd half of the year merging with Aethon Minerals. Now they are finally exploring/expanding their flagship project Diablilos again, and it looks like it finally is getting set up to move out of this range and break to the upside.
Anyone else have any thoughts on the ABRA chart?
@Goldfinger ” #Gold price in Euros made an all-time weekly closing high last week at €1465 per ounce:”
Ira Epstein’s Metals #Video (2/14/2020)
Technical Analysis, Gold, Silver, Copper, Platinum, Palladium
Ex, you must have been burning some of your cash in Australia, look at the forest fire it started. LOL! DT
In fact, I think you should change your name to A.I. man, nobody but a machine could know that much about mining companies. DT
Ex is a machine!
Haha! This is for you humans:
>> Episode 28
Demetri Kofinas | Industrial Society and Its Future: Machine Intelligence, Encryption, and the Will to Power
“Demetri Kofinas lays out his vision for a possible future driven by the emergent forces we have been covering in 2017. What is the goal of the machine? What do we seek to accomplish with our technologies? What are the benefits and the costs associated with the technological, political, and economic forces of the modern age?”
“He reads passages from Ted Kaczynski’s “Industrial Society and its Future,” as well as from Bill Joy’s “Why the Future Doesn’t Need Us.”
https://hiddenforces.io/podcasts/demetri-kofinas-industrial-society-and-its-future/
DT – Here ya go…
https://d2436y6oj07al2.cloudfront.net/spff/previews/30003-8.jpg
Here’s an article that demonstrates the hydrogen theme I’m getting excited about
https://www.forbes.com/sites/alanohnsman/2019/09/05/behind-new-billionaire-trevor-miltons-3-billion-push-to-make-america-run-on-hydrogen/#427824db379f
Speaking of energy and gases… Methane is another good source of power.
Basic Information about Landfill Gas
EPA
– Methane Emissions from Landfills
– Collecting and Treating Landfill Gas
– Landfill Gas Energy Project Types
> Collecting and Treating Landfill Gas
“Instead of escaping into the air, LFG can be captured, converted, and used as a renewable energy resource. Using LFG helps to reduce odors and other hazards associated with LFG emissions, and prevents methane from migrating into the atmosphere and contributing to local smog and global climate change. In addition, LFG energy projects generate revenue and create jobs in the community and beyond.”
https://www.epa.gov/lmop/basic-information-about-landfill-gas#landfill
Yes Ex that’s a big part of it too. Both greenlane and xebec are plays on that. Xebec also has hydrogen division in its company. I think what people need to be considering is how goods will be transported in the future. Bill Gates is putting his money where his mouth is so to speak. He’s getting a super yacht built that will be powered by hydrogen. Battery technology would need to improve greatly to be used to transport goods. Also note that hydrogen takes 5 minutes for a refill while the EV at its fastest still takes 1 hr
Yeah, a buddy of mine is a commercial driver and they use hydrogen powered trucks, and it was the big rage a few years back, but I haven’t noticed as many discussions about it in the news or energy forums lately. My question was always, what happens if there is a wreck – would the hydrogen blow things sky high?
Can’t answer the accident question but can add this article regarding how some are thinking going forward
https://www.h2-view.com/story/hydrogen-the-hero-fuel-to-meet-australias-future-energy-needs-says-chief-scientist/
I found this interesting: Power Metals Corporation: SYL PWN TSX-V. Cesium is extremely rare and therefore expensive. Pure Cesium sells for about $38 a gram US. That is $17252 per lb. or $22,700 CDN. There are only 3 pegmatite mines globally that produce Cesium. Tanco, Manitoba (no longer producing) bought by a Chinese company and then shut down. Bitca, Zimbabwe (currently not producing). Sinclair, Australia (cesium ore is stockpiled) this mine is also owned by the same Chinese company. Power metal Corp was drilling for lithium in Ontario and they hit high grade Cesium. https://web.tmxmoney.com/article.php?newsid=8397380253959691&qm_symbol=PWM
OOPS! PWN should read PWM
Thanks DT. I think there may be a few more pegmatite deposits that have Cesium but maybe not at a commercial scale. It is used in it’s naturally occurring non-radioactive form for health in cancer and depression therapy, but in it’s radioactive form Cesium is nasty business and is very difficult to get out of the food supply or your own body. Many of the worst parts of a reactor meltdown are the Cesium particles released into the environment.
I’d prefer a company focused on Lithium production stay focused on Li, but if it is high-grade enough to make an economic deposit then they may be onto something.
Starting to look like bitcoin over gold is the preference for moving wealth, at least in China.
(ROXG) (ROGFF) Roxgold Announces New High Grade Discovery at Boussoura, Burkina Faso
February 03, 2020
> Galgouli
14 metres (“m”) at 10.5 grams per tonne gold (“g/t Au”) in drill hole BSR-19-RD-GAL-002 from 134m
1.21m at 79.7 g/t Au in drill hole BSR-19-RD-GAL-004 from 177m
9m at 8.2 g/t Au in drill hole BSR-19-RC-GAL-007 from 204m including
1m at 65.8 g/t Au from 204m,
2m at 20.8 g/t Au in drill hole BSR-19-RC-GAL-008 from 226m (hole abandoned in mineralization)
10m at 8.7 g/t Au in drill hole BSR-19-RC-GAL-011 from 158m including
1m at 81.5 g/t Au from166m
> Fofora
10.7m at 18.1 g/t Au in drill hole BSR-19-DD-FFR-001 from 77.4m, including
0.86m at 98.1 g/t Au from 81.2m and
2m at 47.1 g/t Au from 84.9m
25.58m at 2.5 g/t Au in drill hole BSR-19-RD-FFR-003 from 62m
12.0m at 2.0 g/t Au in drill hole BSR-19-DD-FFR-005 from 14.7m
1.7m at 24.7 g/t Au in drill hole BSR-19-DD-FFR-006 from 117.1m
It is interesting digesting the new drilling success $ROXG Roxgold just did at their Boussoura Project in the southern portion of the Hounde Greenstone Belt (10 miles from Côte d’Ivoire #IvoryCoast border), along with the significance of the deal and earn-in agreement they recently cut with $AMD.AX Arrow.
https://www.asx.com.au/asxpdf/20200130/pdf/44dm7rlzx1qx0t.pdf
It is nice to see Roxgold outlining a solid 3rd #exploration project there in the #South Hounde belt of #BurkinaFaso. There is going to continue being more and more focus there until the larger mid-tiers finally consolidate that area. Exciting times for the $Gold miners in #WestAfrica
Thank you Cory & Big Al & the KE Report contributing voices for another great week of editorials and the weekend show. Ever Upward!