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What’s driving these markets? US Markets, Gold and Oil

Cory
July 9, 2020

Ed Moya joins me today for a broad look at the major drivers for the financial markets. With so many factors the could cause a drop it’s fascinating to see the markets ability to ignore these signs.

We focus on the strong rally in gold with comments on the near terms drivers that Ed sees as pushing gold to all time highs this year. Also a couple comments on the type of investors that are now entering the sector. Finally we wrap with a look at the oil price which continues to hang around the $40/barrel level.

Click here to visit the OANDA website and follow along with Ed’s daily note.

Discussion
53 Comments
    cfs
    Jul 09, 2020 09:38 AM

    Atico Intercepts 70.8g/t Au, 1,140g/t Ag and 8.9% Zn over 0.77m Within 7.2g/t Au, 118g/t Ag, and 2.0% Zn Over 8.9m at its Precious Metals Rich La Plata Project in Ecuador

    2020-07-09 10:24 ET – News Release

    VANCOUVER, British Columbia, July 09, 2020 (GLOBE NEWSWIRE) — Atico Mining Corporation (TSX.V: ATY | OTC: ATCMF) (“Atico” or the “Company”) is pleased to announce six holes from its ongoing drill program at the La Plata precious metals-rich volcanogenic massive sulphide (“VMS”) project in Ecuador. The present campaign has the objectives of completing the infill drilling on the La Mina resources as well as extending the mineralization outside of the known envelope.

    cfs
    Jul 09, 2020 09:42 AM

    American Creek Reports 973 Meters Averaging 0.845 gpt AuEq From Hole GS-20-57, Including 1.40 gpt AuEq Over 217.5 Meters Making It the New Best Drill Intercept for the Treaty Creek Property In BC’S Golden Triangle

    2020-07-09 11:55 ET – News Release

    Cardston, Alberta–(Newsfile Corp. – July 9, 2020) – American Creek Resources Ltd. (TSXV: AMK) (“the Corporation”) is pleased to report that its JV partner Tudor Gold Corp announced today that it has completed the first set of diamond drill holes at their flagship property, Treaty Creek located in the heart of the Golden Triangle of Northwestern British Columbia. Diamond drilling is progressing very well on the Goldstorm Zone which is on-trend from Seabridges’ KSM Project located five kilometers southwest of our Goldstorm system. Two additional drills have been mobilized to the project to bring the total to four diamond drill rigs. Tudor Gold intends to extend the diamond drill hole program up to possibly 35,000 meters from the original plan of 20,000 meters and is fully funded to do so. The initial drilling this season has yet to delineate the limits of the Goldstorm system as it remains open in all directions and to depth.

    Jul 09, 2020 09:04 PM

    There are a few rumors circulating that (JAG) (JAGGF) Jaguar Mining may get acquired by a Chinese consortium in the next week or two. Please say it ain’t so…

    Now with their gold hedge off and the Covid-19 shutdowns behind them they were finally ready to start making some ceddar off the higher gold prices.

    While I’m a big fan of positioning in distressed Producers near their lows for a takeover, or top in class Developers (after they have re-rated and have run higher) for a takeover — this is a different scenario. With a company like Jaguar that is about hit their stride in production with nice revenues and cash flows in this elevated price environment, I want to see them go a few quarters and keep moving higher before getting picked off before they blossom.

    Hopefully it is just a rumor, but I’ve got a nice position in Jaguar, and if they get acquired for a 40-60% premium here, I’ll book the win and move on to the next opportunity, but I’d like to see something like a takeover wait until 2021 or 2022 for JAG.

      Jul 09, 2020 09:07 PM

      Having said that, if there is a larger Chinese mining company looking to acquire Jaguar, then they likely want to scoop it up here on the cheap before they get a chance to run higher and put a few solid quarters together. I see JAG as a 5-10 bagger from here, so hopefully it doesn’t get nabbed yet.

        b
        Jul 09, 2020 09:46 PM

        I have Jag too.
        That is not a “fun” rumor, I really dont like take overs.

          Jul 09, 2020 09:06 PM

          I like takeovers in the right environment. For example, if there is a really distressed producer (like how Crocodile Gold Klondex or Alio or TMAC or Guyana Goldfields were) and one can position in front of that near the lows then that is a good time for a takeover.

          Another scenario is positioning in an unloved developer that is getting re-rated higher and then gets nabbed, or a developer moving into production (like Pure Gold is currently) and it gets acquired that that is a win.

          What I don’t like is a small to medium producer that has just gotten done turning their operations around in a rising metals environment (like where Jaguar is currently) and they’d have much more room to the upside just based on their improving economics. Again, with JAG I’d much prefer them to be stand alone and put out 1- 2 years of solid production metrics first, and then possibly get acquired down the road at a much higher price.

            Jul 09, 2020 09:33 PM

            The Chinese are pretty smart traders and businessmen, The Americans used to be, no longer working for The Yankee Dollar. DT

            Jul 09, 2020 09:40 PM

            Agreed DT. That is what concerns me. Chinese mining conglomerates already stole Continental Gold, TMAC, and Guyana Goldfields this year, so I’m sure they are on the prowl for more deals before these miners run too far.

            Jul 09, 2020 09:55 PM

            (JAG) (JAGGF) Jaguar Mining Reports 23,483 Ounces Produced in Second Quarter

            by @accesswire on 7 Jul 2020

            Q2 2020 Operating Highlights

            – Consolidated gold production increased 28% with 23,483 ounces compared to 18,366 ounces in Q2 2019, demonstrating the fifth consecutive quarter of increase in sustainable production. Grade also increased to 4.00 g/t compared to 3.48 g/t in Q2 2019;
            – Pilar gold production increased 28% and set a new production record with 13,452 ounces compared to 10,543 ounces in Q2 2019;
            – Turmalina gold production increased 28% with 10,031 ounces, compared to 7,823 ounces in Q2 2019;
            – Total development metres increased 22% to 2,445 metres compared to 2,009 metres in Q2 2019. Primary development meters increased 30% to 1,707 metres compared to 1,310 metres in Q2 2019. Secondary development meters increased 6% to 738 metres compared to 699 metres in Q2 2019.
            – Total definition, infill and exploration drilling increased 74% to 14,278 metres compared to 8,189 metres in Q2 2019. The additional drilling is expected to allow Jaguar to continue expanding Mineral Resources in 2020;
            – Strong treasury as of June 30, 2020, with cash of $30.1 million compared to cash of $12.1 million on March 31, 2020, demonstrating significant generation of pre-tax free cash flow. Brazilian Bank debt of $1 million was also paid down and $0.7 million of common shares were bought back through the Normal Course Issuer Bid program.

            https://ceo.ca/@accesswire/jaguar-mining-reports-23483-ounces-produced-in-second

            Jul 09, 2020 09:01 PM

            I have a bunch of JAG and am up about 250%. I would be surprised if they roll over into the Chinese camp when they’re just realizing a long awaited fruition of all their work. If they think there are better things to come yet, they’ll probably exact a hefty offer from the Chinese.

            Jul 09, 2020 09:05 PM

            Hey Doc. Good to hear from you.

            Yeah, that makes sense to me as well. I’m sure their team would like to cash in on all the hard work they’ve been doing the last few years to get their operations optimized, and hopefully they’d push back on a predatory offer. However, wouldn’t they still need to disclose it if an offer was made to shareholders for a vote?

            Jul 09, 2020 09:24 PM

            Ex, they certainly would and I’ll bet most of the shareholders are thinking like you and myself. The gold price has a long way to go and if it goes where I think it is, JAG has a considerable upside yet. How about our Argonaut? I had shares of Argonaut and a large position in Alio. I loved the conversion to Argonaut and now Argonaut is one of my larger holdings. I hope management doesn’t mess a good thing up.

            Jul 09, 2020 09:28 PM

            By the way, I’m getting uncomfortable about the conventional market technically at this point. Also, unbeknownst to many, the Fed has quietly been decreasing their balance sheet since early June right at the peak of the S&P. The BBs are narrowing big time on the daily charts and August could be a nasty month.

            Jul 09, 2020 09:10 PM

            Good thoughts Doc. Yes agreed on the potential for Jaguar and the pushback that most shareholder should give to a takeover offer at these levels, should one manifest.

            As for Argonaut Gold, you said it man. It has been an on epic run, and I had a position in Alio for quite some time as well, but had sold most of it before the takeover news was announced, and when ALO spiked on the news, I liquidated it and just held onto the Argonaut shares. It actually grew to my largest position at one point, so I’ve paired Argonaut back a bit to reduce it down in the portfolio but am still very bullish on the combined company.

            I actually was posting about the disconnect in it’s valuation compared to some of the advanced explorers and developers that have the same or higher valuations with no mines & mills, no productions, and not nearly as much gold defined and in the ground. I still see Argonaut as greatly undervalued based on their 3 mines, 3 development projects, and ounces in the ground.

            Their mine #4 Magino is going to be a beast of a mine with 6 million ounces of Gold (and that project alone is larger than most of the other trending Gold explorers or Gold developers with higher market caps than AR).

            _____________________________________________________________

            I posted some of these comments here on Monday, but I did a better synopsis over at ceo.ca.
            ___________________________________________
            @Excelsior – 7 Jul 2020, 12:23 am

            > Are the $Gold #Producers undervalued or are advanced #Explorers getting a bit ahead of themselves?
            _______________________________________________________
            (AR) Argonaut Gold, with 3 current producing mines & 3 large development projects (with capital raise completed for mine #4 that alone has 6 million ounces of gold)
            *$462 Million market cap.

            (SKE) Skeena Resources advanced explorer/developer with no production, but good drill results and a good resource
            *$425 Million market cap
            __________________________________________________
            (VGCX) Victoria Gold in gold production w/ 3.3Moz gold proved up in the ground.
            *$925 Million market cap

            (GBR) Great Bear Resources – no resource estimate or production, very good drill results.
            *$888 Million market cap
            ____________________________________________________
            (USA) (USAS) Americas Gold & Silver 4 producing mines at 3 producing mining complexes in 3 different countries, and a pipeline of exploration and development projects and is a legitimate Mid-Tier Precious Metals producer:
            *$370 Million market cap

            (TUD) Tudor Gold is advanced explorer in the Golden Triangle with no mines constructed and zero production, but very good drill results with JV partners (TUO) Teuton and (AMK) American Creek
            *$402 Million market cap

            >>>> For clarity, I’m not saying that the advanced #explorers / #developers don’t have good projects and may not end up eclipsing some of the producers projects, but that still remains to be seen and they are priced like all of this is already known. Either that or they are fairly valued and the #producers are extremely undervalued. Which one is it?

            I get that all deposits are different and should be valued on their own merits, but we are seeing examples like this across the entire spectrum of mining companies, and it seems like a big disconnect.

            Are folks not considering the huge capital outlays these exploration and development companies will need to deploy, diluting down existing shareholders, or the years of permitting, social licensing and community outreach, permitting, and construction these companies would need to do successfully get their mines and mills built and into production?

            Or has all of this been considered and the advanced explorers & developers are right where they should be and it is just the producers that are not being valued correctly higher?

            Jul 09, 2020 09:56 PM

            Updated (AR) (ARNGF) Argonaut Gold Corporate Presentation – July 2020

            This is on the combined Argonaut/Alio company. In looking at it they have roughly 2.5 million ounces of Gold Eq left in the 3 mining complexes and about 10 million of prove & probale + measured and indicated at their 3 large development projects.

            That is far more gold in the ground by competent producers and I don’t understand how advanced explorers and developers with far less ounces in the ground defined, and no mines & mills constructed or even permitted, and no production have similar or higher market caps for the overall value of the companies. Wild!

            https://s22.q4cdn.com/115151820/files/doc_presentations/2020/07/AR-CORPORATEDECK-JULY2020-WEB.pdf

        Jul 09, 2020 09:13 PM

        EX,
        I thought I Sprott would be able to disuade such a dumb maneuver but who knows. Yes EX it is a 10+ bagger if it doesn’t get picked off. I’ve owned this old dog since 2014 when you and Matt were buying this around .38 before Sprott got in and ripped it to 80+ cents. I feel sick to my stomach. I hope this is B.S over at ce0!!

          Jul 09, 2020 09:33 PM

          Hi confused. No, this was a rumor posted by Mark at IKN on the 7th, but he mentioned he wasn’t the only one that had received the same intel about a Chinese acquisition of JAG.

          That thought turned my stomach as well, because I’m ready to ride Jaguar much much higher from current levels and would be saddened by a takeover here before it really stretches its legs.

          I have a nice profit in Jaguar already and a buyout would add another 40-60% on top of that, but I’d be a bit pissed about it, and move on to the next opportunity. I would think Sprott would have a big say as he has 49% of the company, and if enough shareholders blocked the takeover then hopefully sanity would prevail.

          I’ve studied Jaguar for a decade now having initially positioned in it in 2010 and 2011 (and it was one of the first half dozen gold producers I ever owned). I watched it implode from 2012-2015, and started getting repositioned in 2015 and early 2016. I’ve traded around the position about a dozen times since then, but always keeping a core position in place, and I believe it is one of the most undervalued Gold producers around and deserving of a significant re-rating from here. Again, I sincerely how this is B.S, but that is why I was asking to see if anyone else had heard this same rumor.

            Jul 09, 2020 09:56 PM

            For clarity, I bought Jaguar in 2010 and added in 2011 but sold Jaguar in early 2012 and didn’t buy it back until late 2015 and early 2016 after the new team took over. Most of my purchases were in the $.14 – $.20 range on the Jaguar 2.0 team, once they restructured and had a new plan. As mentioned I’ve traded around that core position about a dozen times over the last 4 1/2 years, and scalped gains a number of times to gather a solid low cost basis on the remaining position.

            The problem years for Jaguar were 2012 – 2015, and I thankfully skipped those, but still followed the story closely looking for when they’d emerge with a new lease on life.

            Granted, it has taken them 4 years to get their mines optimized, and they still have 1 mine on care and maintenance. Now in 2020 their turnaround is just getting finished up, and so it would be nice if Jaguar had time to cash in on a year or two of solid revenues and cashflows before a larger company attempts to acquire them. I believe Jaguar could blow away most of the small to mid-tier gold producers if given the chance over the next 2 years.

            Jul 09, 2020 09:57 PM

            Eric owns 49%, but Sprott Inc. owns another 14%. I’d say 63% is more than enough to put a stop to unwanted suitors.

            Jul 09, 2020 09:42 PM

            TJandTheBear – Great point on Sprott Inc’s position, so yes, when combined with Eric’s position that 63% should be enough pull to fend off unwanted acquisitions. That does ease the mind. 🙂

            I just didn’t want to wake up one morning with news that Jaguar was getting acquired for a fraction of where it is heading. Thanks!

          Jul 09, 2020 09:35 PM

          I never owned Jag until 2016 and my first purchases were closer to 15 cents. It was a “profit dumpster” for me (purchased with profits made elsewhere) early in the big 2016 move. Since then, I have exited the stock completely several times.
          It did run into some real problems a couple of years ago so long term holders have reason to be happy about the turnaround even if the company is does get acquired.
          https://stockcharts.com/h-sc/ui?s=JAG.TO&p=W&yr=5&mn=7&dy=0&id=p11776555522&a=781880684

            Jul 09, 2020 09:32 PM

            Matthew:
            Jaguar: ditto

    Jul 09, 2020 09:27 PM

    What do people think of this VZLA Visla Resources Chart?

    Has it gotten too far ahead of itself here? The drilling results are spectacular, and it’s great that they raised more money, and that Eric Sprott is now on board, but this just seems pretty stretched to me. As a result I sold the final 1/3 of my position today, but immediately had sellers remorse.

    > VZLA Chart:

    http://schrts.co/fCyYiEDs

      Jul 09, 2020 09:39 PM

      The RSI and Slow Stochastics are in oversold territory and the ADX has spiked the green (positive) line higher with big momentum strength from the black line angling up higher. It just seems a bit overcooked here, but in bull markets, I realize the indicators can stay overbought for longer.

        Jul 09, 2020 09:30 PM

        As a shareholder of freegold what they think of the chart???….🤔

          Jul 09, 2020 09:01 PM

          Good comparison Wolfster. Yes FVL Freegold had chart indicators that were also getting oversold as well, but it has started correcting down off it’s highs and the chart indicators are cooling off a bit now.

          > FVL Chart:

          http://schrts.co/JedjqsyU

            Jul 09, 2020 09:03 PM

            My question was if Vizsla may not start doing the same thing FVL did after such a huge surge higher the last few months, and in particular in the last month or so.

            Jul 09, 2020 09:20 PM

            From what I’m looking at technically, the stock Vista will fall back again.

            Jul 09, 2020 09:30 PM

            Some of the technicals I’m watching are signalling an impending top for VZLA.

            Jul 09, 2020 09:22 PM

            Thanks Doc. Vizsla has made one heck of a move, and was my best trade of 2020.

            I first got positioned on March 18th, and sold my final position today, considering it was likely the stock could fall back from the lofty levels it has attained. However, the financing that was just announced was at $1.87 and it closed yesterday at $2.20 and closed up again today to $2.65, so who knows if this thing will ever stop climbing 🙂

            I’m expecting it to fall soon, and if it pulls back 23.6% or 38.2% of the move from $1.12 to wherever the top comes in, then I’ll likely reload the postion.

            Thanks!

            Jul 09, 2020 09:26 PM

            correction oversold should have been overbought in the FVL post up above.

            Hopefully that was obvious in the context of the rest of the verbiage and since we were discussing it topping and heading back down to cool off the chart indicators.

            Jul 10, 2020 10:31 AM

            Yes I wondering if I put in a sell order for my free 1/2 I still own in the $3’s for today and hope it get fills and then look to get back in on a pullback but ……..

    Jul 09, 2020 09:48 PM

    (DSV) (DSVMF) Discovery Metals – Fully-Funded Mexican Silver Player with Clever Plan

    Crux Investor – Jul 9, 2020 #VIDEO Interview

    “Discovery Metals: a Mexican silver developer that is part of Oxygen Capital Corporation. Sprott is the largest shareholder with c. 24% of the company.”

    “The company has reinterpreted an asset that had been designated an uneconomic bulk-tonnage operation by the previous owner because of the depressed silver price. However, by focusing on a high-grade silver drill core and a phased drill programme that includes a silver resource by this time next year, the share price has been on the rise to a record high. The project, Cordero, is one of the largest development-stage silver projects in the world.”

    “The silver player is fully-financed through to production with $40M in the bank. ”

    2:21 – Company Overview
    3:53 – Unraveling the Business Plan: Possibilities Inside of an Unwanted Asset
    9:27 – Time for Monetisation: What Should Investors be Expecting?
    14:03 – Team Experience and Remuneration
    17:27 – Spending the $40M: Focus on Drilling, But Which Sort?
    20:40 – COVID-19’s Impact on Discovery Metals
    21:41 – Eric Sprott’s Involvement: How Much Impact Does He Have on the Decisions Made in the Company?
    22:44 – Working with the Oxygen Group and Their Involvement with the Project
    24:01 – Gold-Silver Ratio: Manoeuvring the Silver Market and Volatile Price
    27:18 – Time to Make Some Money Again: End Game and Strategies Considered

    https://youtu.be/OD87y0SljK8

    Jul 09, 2020 09:06 PM

    Freegold announces $30 million Private Placement, Sprott takes $20 million.
    https://web.tmxmoney.com/article.php?newsid=4969308383623065&qm_symbol=FVL

      Jul 09, 2020 09:44 PM

      They have been drilling for 31/2 weeks, Eric must have checked under the hood or he wouldn’t be buying so much Freegold.

        Jul 09, 2020 09:02 PM

        Freegold was halted at 3;29pm., news came out after market close, this will put a floor on this stock. DT

          Jul 09, 2020 09:18 PM

          Wow, I bought the dip in Freegold today. Didn’t sell any VZLA. Like Freegold, never got a chance to aquire a full position. After mkt close , VZLA announced a private placement, of which Sprott is buying another chunk!

            Jul 09, 2020 09:23 PM

            Dang, I’m getting (relatively) rich by just following Sprott around with a dustpan…

            Jul 09, 2020 09:46 PM

            Buzz – yes, there were comments that the PP in Vizsla has already been filled. There is definitely alot of attention on it at present.

            BTW – It is far more fun to have positioned in a number of companies before Sprott gets in them… then you get the shareprice rise of him coming on board. Of course our positions are still like crumbs in the dustpan compared to his, but I’m impressed that he is one of the few larger investors backstopping a large number of the Gold & Silver miners.

            This site has a list of all the companies Eric is involved with and it is quite the portfolio:

            https://ceo.ca/@jgms:eric-sprott-holdings

            Jul 09, 2020 09:48 PM

            Sprott’s holdings are along the left-hand side of the page.

            Jul 09, 2020 09:55 PM

            Eric Coffin had some cogent points about the PP, as many investors were not happy about the full warrants being included when we are in a bull market and the share price of VZLA was already surging.

            ________________________________________________________

            @HRA-Coffin – “I was surprised by the full warrants, but not the pricing. I pointed out to subscribers this morning that in any sort of “normal” market, you’d never get a bought deal done the day after a 100%+ move, and certainly not at that discount, when 10 day VWAP was about $1.05 when the deal was inked. Eric Sprott got full warrants because he’s Eric Sprott. Eric holds onto his stock and is someone who is willing and able to exercise if its needed for something strategic, which many warrant holders aren’t. And being Eric Sprott, he brings a fan club with him as you could see from today’s trading. I don’t love the full warrant (I’d love it more if mgmt offered me a piece – hint, hint – just sayin!) but I can live with it, given who’s getting it. It’s apparently Eric and two funds. And its not lost on me that the placement, cash on hand and warrant exercise would be enough to close the Rio Panuco acquisition with plenty to spare. Mike told me literally every meeting in the last year has started with “how will you be financing the big back end on the option?” so I can see how they would want to be able to say “It’s covered” with a straight face. #Index $VZLA ”

            https://ceo.ca/index?f84fcc334cf0

    Jul 10, 2020 10:02 AM

    Silver Investment Demand Up By 10 Percent In First Half of 2020

    July 09, 2020 – The Silver Institute

    “Silver’s role as a valued investment was broadly on display during the first half of 2020, as investors actively accumulated silver in the first six months of the year, leading to a 10 percent gain in investment demand. Paving the way was remarkably strong growth in silver-backed exchange-traded products (ETPs), which have posted successive all-time highs this year, together with solid silver coin and bar investment.”

    “Retail and institutional inflows into silver ETPs have been impressive this year. As of June 30, global holdings reached a fresh all-time high of 925 million ounces (Moz), which is roughly 14 months of mine supply. The ETP growth in the first half 2020 of 196 Moz comfortably surpassed the highest annual inflow of 149 Moz set in 2009. North American listed funds accounted for some 90% of the ETP inflows since March.”

    https://www.silverinstitute.org/silver-investment-demand-10-percent-first-half-2020/

    Jul 10, 2020 10:09 AM

    Gold price builds base above $1,800 with record in sight

    Mining.com Editor | July 9, 2020

    https://www.mining.com/gold-price-builds-base-above-1800-with-record-in-sight/

    Jul 10, 2020 10:45 AM

    Monster rally adds $250 billion to global top 50 mining companies
    Frik Els | July 6, 2020

    “The Top 50 most valuable mining companies added $249.5 billion in market capitalization over the three months to end June, thanks to surging gold and silver prices, iron ore prices in triple digits, and a late recovery in the copper market.”

    https://www.mining.com/top-50-biggest-mining-companies/

    Jul 10, 2020 10:15 AM

    Sprott Money News Weekly Wrap-up w/ Eric Sprott

    7.10.20 #AudioInterview

    “Legendary investor Eric Sprott discusses the precious metals markets and answers listener questions regarding a few specific mining company shares.”

    Topics covered: $Gold $Silver $KL $GCM $BMK $FVL $WM $TUD $VZLA $STGO $JAG

    https://youtu.be/8BaQaYZBp14

      Jul 10, 2020 10:06 AM

      Ex:
      Active morning: took more profits in Great Bear and some Vizsla. Added to: Ely and EMX. Bought again: Sailfish and Golden Valley and Abraplata. Bought new: Atico Mining. Time for a break. Caught Vizsla early over $2.00 US sale average.

        Jul 10, 2020 10:03 AM

        Nice work David and well done sir!

        Yes, I’ve had an active morning as well. I finished selling my remaining 1/3 Vizla position yesterday, but have debated jumping back in today since it has pulled back about 4-7% most of the day, and I fell naked without any position. haha!

        I’ve also added to my Precipitate Gold today since it was pulling back and I believe their best news is coming up.

        Speaking of Golden Valley I actually added a bit myself earlier this week, and am holding strong on my Sailfish as well. Yes, Ely Gold Royalties and EMX Royalties are other safer bets for capital storage. I”m considering EMX myself.

        I sold a big chunk of my Avino earlier today as I’m getting sick of their setbacks, and ASM has been underperforming the other Silver stocks for quite some time.

        I owned Abraplata earlier this year but sold it when the miners starting running over the last few months, to rotate into other Silver stocks. I wasn’t sure about Argentina as a jurisdiction, and it seemed they were getting more Copper focused in their press releases when I was looking for more of a Silver focus for now. If the Copper keeps moving higher I’ll likely buy back into Abraplata though (if we see a nice correction in the PM stocks).

        Speaking of Copper – Atico Mining did have some impressive drill results out yesterday and I can see why you positioned in it. That thought crossed my mind as well.

        Ever Upward!

          Jul 10, 2020 10:36 AM

          Ex:
          That Avino situation reminded me I need to check on Silver Bull and see if they are making any progress on their road block by the towns people. I am hoping they get some holes drilled with Precipitate and hoping Barrick is motivated. I had Abraplata before and misspelled it then also. I am back in because Sprott’s Ontario Ltd bought 26,000,000 million shares on an initial investment. They have had some OK drill results but spread across silver, gold and copper. I am letting them sleep in the garage right now. Atico drill results were interesting, so giving them a shot. They are on the back porch. Sprott doesn’t usually stray too far from home, but he mentioned he bought Steppe or something like that in Mongolia. I recently picked up Erdene again which is also in Mongolia, but a lower price. I need to compare those two as Erdene had some interesting drill results also. In the meantime, I continue to let Vizsla, Great Bear, Azimut, Freegold, Discovery and Ely hang out with the Pilbara guys, anywhere they want in the main house.

            Jul 10, 2020 10:26 PM

            In reference to Silver Bull, the best I can figure is they filed a trespass case against the road blockers. It appears they are attempting to use the Courts rather than confrontation.
            In another Stock, Silver Bear, it has been dragging around for awhile and showed Some life today. So I added a small few. They are a producer in Russia with a large deficit. But, they produce at an average grade of 707 g/t. Their 3 month cost is $16.88 ag/oz. If Sprott’s estimate of a possible $100 an oz, then things looking up for these guys.

            Jul 10, 2020 10:07 PM

            I ended up getting a new tranche in for Vizsla today at a better cost basis than what I sold for yesterday, so at least I’m back “in” again but actually hope it pulls back down some more ealier next week so I can add more to the position.

            I almost added to my Discovery position today (which I had trimmed back at higher prices recently) and almost started a position in Azimut Exploration (after you got me to take a closer look) but I’d like to see both of them pull back more before deploying any cash.

            As for Silver Bull & Avino – such are the risks of operating in Mexico. For the meantime, I’m glad I went with Southern Silver over Silver Bull, but I’m still interested in and following Silver Bull.

            As for Silver Bear I’ve been watching them for a long time and was initially put off a few years back by their huge warrant overhang, but they resolved that. Then I was going to get into them when they were making their development decision to construct and prepare for production, but then Silver prices tanked out. Then I was going to get positioned when they announced production, but I backed other horses. I’m still watching them as a potential candidate, but right now I’m very stocked up on Silver producers (Coeur, Silvercorp, Americas Gold & Silver, Impact Silver, Santacruz Silver, Excellon Resources, Endeavour Silver, Avino Silver, and Sierra Metals) and don’t want to switch any out right now. I did sell off a 2nd big chunk of my Avino today on the blockade news, and if I finish selling it off down the road may rotate into Silver Bear or Maya Gold and Silver.