Revisiting the Yamana acquisition of Monarch Gold now that the spin out, Monarch Mining, is trading

January 26, 2021

Dave Erfle, Founder of the Junior Miner Junky joins me to answer a question that came in recently regarding the Yamana and Monarch Gold transaction from late last year. Now that the spin-out Company, Monarch Mining, starting trading on the TSX.V today we discuss the prospects of this stock.

Please keep sending in your questions for Dave to my email address –

Click here to visit Dave’s site – The Junior Miner Junky.

    Jan 26, 2021 26:48 PM

    Fireweed Zinc drills 212.7 m of 4.42% Zn at Macmillan
    2021-01-26 13:16 ET – News Release
    Mr. Brandon Macdonald reports
    Fireweed Zinc Ltd. has released the first results from the 2020 drilling at the Macmillan Pass project in Yukon, Canada.

    Jan 26, 2021 26:01 PM

    David you have any opinion on O3 Mining, they are cashed up and have 12-15 rigs on aggressive drill program for 2021.

      Jan 26, 2021 26:36 PM

      I don’t know the company but it has been consolidating/base-building bullishly for 18 months. So I would bet that the next significant move is to the upside. Hopefully David is familiar with it.

        Jan 27, 2021 27:38 AM

        Of the most successful stocks from 1953 through 1993, nearly two out three were part of group advances. (Do not forget all boats rise in a rising tide). Group movements cannot be overestimated. #PM #Commodities. Be right and sit tight.

          Jan 27, 2021 27:19 AM

          Yes, group advances make winners out of everything within the group that’s advancing but there will always be a few that blow the group away. In 2016, for example, there were too many triples and quadruples to count and even SILJ went up 5 times. My largest three holdings by far went up 10 times on average. I would not have celebrated the relative losers that doubled and tripled that year. So, attempting to pick right before sitting tight is worthwhile to me and I bet you’d agree.

      Jan 26, 2021 26:07 PM

      I am very excited about O3 Mining’s exploration program for 2021, and it is one of the larger drill programs in the entire gold sector. Obviously having Osisko as the main backer is great, but I also like the properties they acquired from prior mining companies, and followed those companies closer before OIII came onto the scene a few years back. Also, O3 mining has shuffled the deck a bit in optioning off some properties, but also taking strategic stakes in other companies (like QMX that was just acquired by Eldorado gold).

      As a result of the sheer drilling for this year, and quality partners, a second, and third tranche have been added to my O3 Mining holdings and I’m ready to watch them shake n’ bake.

        Jan 26, 2021 26:21 PM

        Cory did a good interview with Jose Vizquerra, (CEO of O3 Mining) just a month back, that highlights the discount they are still trading out in conjunction with the overall value of their PEAs and resources in the ground. That alone is an attractive story that the market is not fully appreciating (yet…), but the upcoming drilling should be a continuous flow of news for the year ahead.

        O3 Mining – Updating High Grade Results From The Alpha Property And The Garrison PEA

        KE Report – Dec 21, 2020

      Jan 27, 2021 27:45 AM

      O3 is Jayant’s biggest holding.

        Jan 27, 2021 27:06 AM

        The confluence of savvy investors positioning in O3 Mining is a telling sign — Osisko gold royalties with 27% of the shares, is a solid partner to have, but there are many solid institutional investors like Cormark, CIBC, Sprott lending, Canaccord, Red Cloud, etc… now in the hopper. Investors like Breni Leni and LucTenHave are also quite vocally supportive.

        With one of the largest drill campaigns in the sector for 2021, it should be very interesting to see the assays come back in, for the resources to grow, and for O3 Mining to get the rerating it deserves.

    Jan 26, 2021 26:20 PM
    Jan 26, 2021 26:53 PM

    Never Chase Runaway Gold Stocks says David Erfle

    MiningStockEducation – January 26, 2021

    0:00​ Introduction
    0:58​ What direction are the metals and miners headed?
    5:17​ Has gold peaked?
    6:40​ 2008-2011 gold stock retraces
    10:02​ Investing opportunities a Biden admin brings
    12:35​ Never chase mining stocks higher
    13:12​ Understanding the Lassonde curve re: drill plays
    16:12​ Copper drill plays
    17:20​ Threats to preserving wealth

      Jan 26, 2021 26:04 PM

      Really good comments and insights today from David Erfle; both here at the KER and in that Mining Stock Education interview linked above. Also interesting thoughts on the Monarch spinout co. Much appreciated.

    Jan 26, 2021 26:10 PM

    (DSV) (DSVMF) Discovery Metals: The Focus Is Clear, High-Grade Silver!

    Soar Financial Online Session 05 w/ Taj Singh, CEO of Discovery Metals Corp.

    Jan 27, 2021 27:28 AM

    Royalty Company Announces 2020 Metals Deliveries and Sales Totals

    (NSR) (NSRXF) Nomad Royalty Company also provides an update on its royalty and streaming assets.

    Streetwise Reports (1/26/21)

    Jan 27, 2021 27:31 AM

    Why the Gold Bull Will Run for Years

    “Peter Krauth, the editor of Gold Resource Investor, traces previous gold bull markets and lays out what he believes is in store for the current one.”

      Jan 27, 2021 27:03 AM

      One Of The Greatest Bubbles In History

      Jan. 26, 2021 – John Hathaway

      “The fate of the stock market and the outlook for gold are more intertwined than most realize. A major headwind for gold has been the consensus comfort level with potential returns from mainstream investment strategies. While gold has performed well over the past few years, gold’s outperformance is still a well-kept secret. If a general bear market sets in, many more individual and institutional investors will look towards gold and related mining stocks. In the meantime, macroeconomic and valuation factors continue to build in gold’s favor.”

    Jan 27, 2021 27:37 AM

    The vast majority of higher torque Gold & Silver miners have been under noticeable weakness since early January, after nice runs from late November, into December, and into early Jan.

    Yes, this recent pullback in January has offered good opportunities to accumulate existing positions or start new positions that have come back to good levels.

    The Gold miners have been in a classic sideways channel since last Fall (Oct/Nov), and while it has offered a few periods for good swing trades, the real breakout (or breakdown) move is still coming in the weeks to come.

    It is possible that the Fed meeting tomorrow on Wednesday will provide the catalyst to get things moving.

    I’m invested for the bullish thesis and the eventual breakout, and have been actively trading in the markets the last few weeks to increase my Gold Silver exposure, and slightly reduced my Uranium and Lithium exposure (after their mining stocks have had much better moves higher). However I’m cognizant of a number of technicians warning of more potential weakness, should Gold break down further challenging the low $1800s and worse the high $1700s, dragging the sector with it.

    So while Gold has mainly channeled sideways between the 55 day EMA and 233 day EMA, I’d prefer to see it stay above that 233 day EMA (currently at $1802.34), and definitely want to see it stay above that November trough low at $1767.20.

    It would be quite bullish to see Gold close above the 55 day EMA (currently at $1870.67), and even more bullish to see that happen on the weekly close.

    The Gold Chart I worked up below shows gold channeling between those 2 EMAs, and as pricing is piping sideways, the energy is building for a large move out of this consolidation.

    Jan 27, 2021 27:48 AM

    Over 95% of my stocks down at open. Obviously an orchestrated algo attack…very possibly to give The Fed a warm feeling. The corruption lives on.

    Jan 27, 2021 27:02 AM

    Viscount Mining (VML-V) drills 702.7 G/T Silver over 14.9 meters including 1259.1 G/T silver over 7.6 meters @ Silver Cliff Colorado. That is a very nice intercept in a great location. DT

      Jan 27, 2021 27:55 AM

      That is a really good silver drill hit from Viscount. Thanks for sharing that news DT.

        Jan 27, 2021 27:03 AM

        Hey Ex, I’m with you 100% on your postings the other day, I know you know what I mean. For now I am content to let sleeping dogs lie, I sincerely hope the situation improves. DT

          Jan 27, 2021 27:10 AM

          Thanks DT, and yes agreed, I also hope that “situation” improves, yet I don’t hold out much hope, as some folks are damaged goods. Oh well, hoping for the best, and the reason most of us are here is to share good ideas on investing and macro economics, and maybe share a few laughs. Ever Upward!

    Jan 27, 2021 27:16 AM

    Some talk around that brokerage houses had some overloads and outages this aim. One mentioned short squeeze…but my stocks down. More likely a fat fingered algo overload and stop smasher.

      Jan 27, 2021 27:18 AM

      “this AM”

    Jan 27, 2021 27:23 AM

    Is this the 5% hit that you thought was possible? You did say this washout is good.? I am going back to drinking coffee.

      Jan 27, 2021 27:42 AM

      Yes, this is good and it would be fine if it continued tomorrow but the action so far makes me think today was probably the low for most of the sector. HL, for example, has already clawed back more than half of its 8% drop and SILJ has done the same. ☕🤠

        Jan 27, 2021 27:52 AM

        I just tried to add to my Fireweed and Schwab US said that they are having technical difficulty and currently cannot execute any trades for “some” customers. Sounds still like an fat finger overload.

          Jan 27, 2021 27:56 AM

          It seems like Schwab and a couple others have a lot of technical difficulties.

    Jan 27, 2021 27:07 AM

    Looks like short squeeze on Gamestop, AMC Entertainment, Express and Koss. All up over 150% …. I wonder if the outages and short squeezes related. Interesting Fed Day…Maybe it is the Robinhood crowd…or just JPM having too many donuts before open.

      Jan 27, 2021 27:00 AM

      It looks that way David. As has been mentioned in some of the daily editorials the last few days; the trading in Gamestop and some of the other stocks retail investors are pushing up to new highs is really getting frothy. Yes, there are huge numbers on Robinhood and other plaforms pushing things higher, like what they did with the Airlines, and Hertz rental cars earlier in the year. Quite a spectacle.

      There was an interview on Real Vision yesterday that touched on this retail phenomenon.


      “GameStonk” Lunacy: Is Speculative Fervor Reaching Epic Proportions? (w/ Tommy Thornton)

      Jan 26, 2021 – Real Vision Daily Briefing

      “Senior editor Ash Bennington hosts Tommy Thornton of Hedge Fund Telemetry to break down a day of absurd price action as GameStop skyrocketed 90% today and zoomed an additional 46% during afterhours trading. Tommy and Ash reflect on the shrewd yet reckless speculations of the r/wallstreetbets traders, who pushed hedge funds that were short GameStop like Melvin Capital to the brink, with Tommy noting that this intentional targeting of shorts triggered a record day of long/short degrossing. Turning to technical indicators, Tommy comments on the buying exhaustion he is seeing via DeMARK indicators, saying “this is a bubble that I think could pop at any moment.”

    Jan 27, 2021 27:12 AM

    Just heard on CNBC: Gamestop had a short position 144% of the float. As someone said: Where have the Regulators been? Welcome to our world.

      Jan 27, 2021 27:14 AM

      Do you think there were some “naked shorts”?