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Balancing the risk factors in the US to market moves and precious metals

Cory
June 9, 2020

There is no denying a lot of negative things are going on in the US and around the world. John Rubino joins me to outline the risk factors for investors and markets. As markets have been able to largely ignore these risks over the past couple months there are some themes that John is sticking to.

Click here to visit John’s site.

Discussion
39 Comments
    Jun 09, 2020 09:15 AM

    (TML) (TSRMF) Treasury Metals: Goliath Stirring

    Jun. 9, 2020 – Itinerant

    “Treasury Metals to acquire the Goldlund project…at a very reasonable price.”

    “A long-awaited, and highly accretive move for Treasury Metals.”

    “The 2017 PEA represented an important milestone to this regard, and incidentally triggered our interest in the company and the Goliath project. This PEA assumed production of ~100,000 ounces of gold per annum over a mine life of 13 years. The economic analysis in this report assumed a gold price of $1,225/oz and documented a post-tax NPV(5%) of C$306M and an IRR of 25.1%. At today’s gold price the IRR would print north of 40% — a highly attractive project in a highly desirable jurisdiction.”

    https://seekingalpha.com/article/4352782-treasury-metals-goliath-stirring

      Jun 09, 2020 09:22 AM

      Roth repeats ‘Buy’ on First Mining Gold after ‘logical’ proposed Goldlund sale to focus on Springpole asset

      Giles Gwinnett – Fri 05 Jun 2020

      “Roth Capital Partners has repeated a ‘Buy’ rating on First Mining Gold Corp (TSE:FF) (OTCQX:FFMGF) following recent news of the proposed sale of its Goldlund gold project to Treasury Metals (TSE:TML) (OTCQX:TRSMF), which the broker says ‘unlocks value’ from First Mining’s portfolio.”

      “First Mining is expected to retain a 19.9% equity interest in Treasury Metals, which Roth believes “provides the company with upside to the combined entity while returning capital to shareholders”

      https://www.proactiveinvestors.com/companies/news/921270/roth-repeats–buy–on-first-mining-gold-after–logical–proposed-goldlund-sale-to-focus-on-springpole-asset-921270.html

        Jun 09, 2020 09:59 AM

        speaking of acquisitions in the Gold miners; here is another of note:

        ______________________________________________________________________

        (HUM.L) ((HUMRF) Hummingbird acquires Guinea gold project from Cassidy Gold
        Jun. 8, 2020

        “Hummingbird Resources (HUMRF) to acquire Kouroussa gold project, in Guinea, from Cassidy Gold (CDXGF).”

        “Kouroussa is a near-term development asset in the Siguiri basin and has a high-grade mineral resource of more than 1.1M tonnes of gold, grading at about 3 g/t.”

        “First gold production is targeted within two years, with production of about 100,000 oz/y and an all-in sustaining cost of about $800/oz over an initial five-year life-of-mine.”

        https://seekingalpha.com/news/3581268-hummingbird-acquires-guinea-gold-project-from-cassidy-gold

          Jun 09, 2020 09:01 PM

          It also still makes sense if Hummingbird were to grab Compass Gold (CVB) on the cheap, since their assets are proximal to their current producing mine & mill, and could be used as a hub and spoke business model.

            Jun 09, 2020 09:58 PM

            Compass needs to prove the goods are in the ground more before that would happen

            Jun 09, 2020 09:00 PM

            True it is still early days, but Compass Gold definitely has the goods on a large swath of prospective land which has already shown positive gold grades in soil samples and their limited prior drilling from last year. That moves it up the value chain as attractive enough for Hummingbird or another miner to acquire their consolidated land position in that mineral belt for their own work, but most will likely be watching to see how this years exploration on so many new targets goes.

            Here is the work Compass planned to get done this year, but I don’t know how the schedule may have been slightly modified by a month or two due to Covid-19 delays.

            ______________________

            (Pg 11)of CVB Compass Gold – Corporate Presentation:

            > AC Drilling (May-June)
            • Tarabala – 22 holes (1,100 m)
            • Samagouela – 19 holes (950m)
            • Sodala – 9 holes (450m)

            > Soil Geochemistry & Geophysics
            • Massala / Assama (Sankarani)
            • Ourou Ourou / Noumou (Badogo)
            • Kalé / Kapalengué

            > AC Drilling (Q4, 2020)
            • Drilling on new targets
            • Follow-up drilling on best AC drilling prospects

            http://compassgoldcorp.com/investor-presentation/

            Jun 09, 2020 09:08 PM

            For now I’m jazzed that Hummingbird is picking up the Kouroussa gold project, in Guinea, from Cassidy Gold, and would love to see them bolt-on “production of about 100,000 oz/y and an all-in sustaining cost of about $800/oz over an initial five-year life-of-mine.”

            Obviously, they are going to be doing exploration work there to extend the mine life, but that is plenty to augment their current production of 110,000 -125,000 ozs of production in 2020 from their current operating Yanfolila Mine in Mali.

            This acquisition will take Hummingbird up over 200,000 ounces of gold production per year, as Gold prices are quite favorable.

            https://hummingbirdresources.co.uk/wp-content/uploads/2020/04/HUM-Corporate-Presentation-April-2020-FINAL.pdf

    Jun 09, 2020 09:44 AM

    (DSV) (DSVMF) Discovery Metals completes final tranche of C$25M private placement
    Jun. 9, 2020

    “The Company also announces it has received approval by the Mexican government to resume operations at its Cordero project.”

    Taj Singh, President and CEO of Discovery commented, “With the closing of the financing we now have over $40 million of cash on our balance sheet, putting us in a strong position as we restart our exploration activities at Cordero.”

    https://seekingalpha.com/news/3581603-discovery-metals-completes-final-tranche-of-c-25m-private-placement

      Jun 10, 2020 10:38 AM

      I’m a little late to the party but finally have some discovery….not an earth shattering deal but the project generator/royalty plays are merging as was expected by you Ex.
      https://stockhouse.com/news/press-releases/2020/06/10/evrim-resources-and-renaissance-gold-combine-to-form-new-royalty-prospect

      Jun 10, 2020 10:40 AM

      Going to resubmit this reply as it got the waiting moderation comment and I’ve never seen my post show up after that happening.
      I’m a little late to the party but finally have some discovery….not an earth shattering deal but the project generator/royalty plays are merging as was expected by you Ex.
      https://stockhouse.com/news/press-releases/2020/06/10/evrim-resources-and-renaissance-gold-combine-to-form-new-royalty-prospect

        Jun 10, 2020 10:27 AM

        Hey Wolfster – thanks for the heads up on the Evrim & Renaissance Gold merger. Yes, we’ll continue to see more merging of the Royalty companies and Prospect Generators, as there are too many small companies that would be better off combining forces like this.

        Welcome to (DSV) Discovery Metals. They already have one of the largest undeveloped Silver deposits, and I like forward to the 2nd half of their Phase 1 drilling campaign over the next few months. Then they can start working on incorporating that into a resource update, and revised project economics.

    Jun 09, 2020 09:49 AM

    (KTN) (KOOYF) Kootenay Resumes Drilling at Columba High-Grade Silver Project, Mexico

    by @newswire on 9 Jun 2020

    “The initial holes of the remaining 5,200 meters will focus on expanding the F-vein by following-up on positive results from the first 10 holes of the Program.”

    https://www.kootenaysilver.com/news/kootenay/2020/kootenay-resumes-drilling-at-columba-high-grade-silver-project-mexico

      Jun 09, 2020 09:17 PM

      speaking of Silver exploration work… It was unclear which direction that Excellon was going with the historic Silver City project they had acquired in Germany, but this recent announcement makes me feel better about their approach and starting to recognize some value from this project.

      __________________________________

      (EXN) (EXLLF) Excellon Partners with Helmholtz Institute Freiberg to Advance Silver City Project

      @newswire on 9 Jun 2020

      “This R&D Agreement matches the exploration technologies of the future with Saxony’s historical mineral wealth,” stated Brendan Cahill, President and CEO of Excellon. “The Silver City Project realized over 750 years of high-grade silver production until the 1870s, yet had never seen modern day exploration for precious metals until 2019. We now have the opportunity to deploy the most advanced technologies as exploration commences. This agreement also reflects the wealth of learning and technical expertise in Freiberg, mere kilometres from the project. We are honoured to work with HIF to advance Silver City over the coming years.”

      https://ceo.ca/@newswire/excellon-partners-with-helmholtz-institute-freiberg

      Jun 10, 2020 10:35 AM

      (KTN) (KOOYF) Kootenay Reports Priority Targets on the Cervantes Porphyry Gold-Copper Project in Sonora, Mexico
      @newswire on 10 Jun 2020

      https://ceo.ca/@newswire/kootenay-reports-priority-targets-on-the-cervantes

    Jun 09, 2020 09:56 AM

    (MMX) Maverix Metals – May 2020 Corporate Presentation:

    AN EMERGING PURE PLAY GOLD ROYALTY OPPORTUNITY

    https://www.maverixmetals.com/site/assets/files/3752/maverix_presentation_may_2020.pdf

    Jun 09, 2020 09:11 PM

    Bobby M………out with some hot leads……
    http://energyandgold.com/2020/06/08/bob-moriarty-this-is-the-start-of-the-revolution/
    Bob Moriarty: Yes. Obviously Lion One, obviously Irving. Novo

      Jun 09, 2020 09:12 PM

      White Gold (TSX-V:WGO),

        Jun 09, 2020 09:14 PM

        FROM THE ARTICLE……..BM…….says
        I’ll be candid. White Gold is one of the most undervalued stocks I’ve ever seen, not because of their potential, but because of what they’ve already shown. Kinross owns 20%, and Agnico Eagle owns 20%.

          Jun 09, 2020 09:16 PM

          And technically speaking, if silver can bust out above $20 again, then man, we’re in a new silver bull market. And then, if silver’s trending from $20 to $21 to $22 to $23+ you’ve got to think that some of these silver juniors could go up 10, 20, maybe even 50 fold, in a silver bull market like that.

          Bob Moriarty: I don’t think so.

          Goldfinger: Why not?

          Bob Moriarty: They’re going up 100x.

            Jun 09, 2020 09:18 PM

            +100

            Jun 09, 2020 09:06 PM

            … and yes obviously Lion One (LIO)….

        Jun 09, 2020 09:41 PM

        White Gold is the go to in the Yukon.
        Shawn Ryan is a true rags to riches story.
        Talk about thinking outside the box. Shawn figured out that the Gold was in the area where the glaciers didn’t go through.He figured out that the bones of animals would be there and he went from there.
        Quite the story.

          Jun 09, 2020 09:44 PM

          Bob M quote for today:
          According to Einstein there are only two things that are infinite,
          The universe and human stupidity.

            Jun 09, 2020 09:52 PM

            Always, have to listen to good teachers………….jmo

            Jun 09, 2020 09:54 PM

            Or, it might be wise, to listen to good teachers……

            Jun 09, 2020 09:18 PM

            Some other great Bob M quotes in that piece:

            “Here’s what’s interesting, there is a world of difference between a peaceful protestor and someone taking a truck and bashing it into Best Buy and then going in and stealing the large screenTVs.”

            “I’m against people breaking into Best Buy and stealing. I don’t give a damn what their skin color is. However, if you want to go in front of the White House and peacefully protest, for whatever reason, that’s incorporated into the Bill of Rights. You have an absolute right to do that.”

            — Bob Moriarty
            _________________________

            “When I look at Joe Biden and Hillary Clinton and Trump, give me a break. You would have to search far and wide to find three bigger crooks. How someone has concluded these idiots should run the richest country on earth, how on earth do you get there?”

            ” I’m horrified by all of them. I’m horrified by Obama. I’m horrified by Bush. I’m horrified by Clinton. It’s one of those, gag me with a spoon, moments.”

            — Bob Moriarty
            ___________________________________

            “The virus was pretty much broad, and Ron Paul called it very early. We fudged the numbers, and it certainly created a pin that burst a lot of bubbles. And the Fed came in and poured money into the system, and boy, I’ll tell you this. It’s going to cost a lot of people a lot of money at the end of the day. This is the most insane market I’ve ever seen. We’ve got 40 million Americans out of work. We have riots in 150 cities, and the stock market is trying to hit new highs. That’s shithouse rat crazy.”

            — Bob Moriarty

            Jun 09, 2020 09:33 PM

            Ditto……..there were some great comments……..I thought it was a great read…..
            Especially, the 100 bagger…… 🙂

            b
            Jun 09, 2020 09:12 PM

            “When I look at Joe Biden and Hillary Clinton and Trump, give me a break. You would have to search far and wide to find three bigger crooks. How someone has concluded these idiots should run the richest country on earth, how on earth do you get there?”

            ” I’m horrified by all of them. I’m horrified by Obama. I’m horrified by Bush. I’m horrified by Clinton. It’s one of those, gag me with a spoon, moments.”

            — Bob Moriarty

            Any wonder Bob got asked to leave?

            They are all crooks, 2 headed snake, how can anyone informed be talking about actually voting for any of them?

            Jun 09, 2020 09:01 PM

            Agreed OOTB and B.

            Jun 09, 2020 09:01 PM

            Gotta love Bob M. I agree with 99.99% of all he says. Only when he called Trump a ‘piece of spavined weasel sh*t’ I had to disagree–unfair to spavined weasels.

    Jun 09, 2020 09:14 PM

    Sad……….Really Sad………..that we, no Chicago has a GROUP OF MORONS……….
    https://www.zerohedge.com/political/youre-100-full-hit-fk-you-chicago-alderman-mayor-rage-over-looting-leaked-audio

      Jun 09, 2020 09:53 PM

      Saudi Arabia’s cabinet on Tuesday approved a new mining law that aims to accelerate foreign investment in the sector as part of efforts to diversify its economy away from hydrocarbons.

        Jun 09, 2020 09:56 PM

        Riyadh’s efforts to build an economy that does not largely rely on oil and state subsidies involves a shift towards mining vast untapped reserves of bauxite, the main source of aluminum, as well as phosphate, gold, copper and uranium.

          Jun 09, 2020 09:48 PM

          Good info OOTB. Spent a year there and there are vast areas that could be mined. Kind of like outback Australia. The problem is the Royal family that owns it all. Many years ago there analysts that said they hit peak oil. The latest oil circus, end of the Petro Dollar and general collapse due to the pandemic makes mining a pretty real option. Good posts.

            Jun 10, 2020 10:02 AM

            Thanks David……..

    Jun 09, 2020 09:50 PM

    Should we get up a pool on how the algos will treat the miners tomorrow when the Fed blurs the bad news in a good Fed Speak fashion. There is nothing fundamental they can truthfully report that should drive miners downward. Can they surprise us with a fabricated report. Maybe….

    Jun 09, 2020 09:28 PM

    Cain & Able sort of set the tone, as to where we are now…

    Jun 10, 2020 10:18 AM

    Dollar doesn’t think much of Fed comments today. Gold seems to approve.