Good to know. I’ll have a closer look as to what they are up to. Much appreciated.

For now, I’m positioned in FSX Fosterville South looking to see if they can make the next big discovery in Australia. They have land all around Kirkland Lake’s Fosterville Mine.

It just seemed relevant to point out the obvious one more time, because so many investors worry and fret over every blip in the metals prices, and for most people it is simply noise.

If people are longer term stackers, that aren’t planning on selling their physical Gold anytime soon, and are holding it for insurance purposes in their asset portfolio, then whether Gold is at $1500, $1600, $1700, $1800, $1900, or $2000 is irrelevant. Sure if it dips down, they may want to add more, but they aren’t losing sleep at any of these prices.

If people are investing in the Gold producers or developers, then sure, the higher the better for margins or economic calculations, but the prices we’ve seen the last 2-3 years are plenty fine for progress to made in the mining sector. The higher the prices go, then the more cashflow the producers generate, and the more of that they can reinvest in the sector through strategic stakes in the juniors, through all-out takeovers, and in beefing up their exploration and expansion efforts.

Just a friendly reminder that we are not in a bear market anymore, and haven’t been since December of 2015. It’s OK to smile and enjoy the ride higher when you are winning the long game. 😉

It should be mentioned that the exact same thing is true for Silver and the Silver miners.

> Question: “Can the Silver Producers make money at a $27-$28 metals price?”

>> Answer: Of course they can! Heck, most Silver producers just need it to be above $18-$20, so even if Silver had crashed to $22 or $21 as many thought it would still be printing money all the way down to those levels. With Silver in the mid to high $20’s though, they are going to generate enough cash flows that they can plow more money into mergers and acquisitions, into strategic stakes in juniors, and into exploration and expansion.
_____________________________________________________________

> Question: “Are the Silver Developers projects attractive and economic at $27-$28”

>> Answer: Of course they are! Look, if a project is not attractive to develop at $27 silver, then it is not a legitimate project… it is a soil anomaly. Most good development projects are solid at $18 Silver or lower. Again, even if Silver was to pull back to the $22, then these development projects are plenty fine, but with it in the $24-28 range, then their economics (NPV, IRR, Payback periods) should jump off the page at investors, or at the big boy miners that are considering acquisitions.

Case in point (just one of many we see in the well run producers):

Notice below that Silvercorp is printing money, paying dividends, buying new mines, and taking strategic positions in junior miners. That is the trend we will continue to see from cashed up producers.

(SVM) Silvercorp Reports Net Income of $46.4 Million, $0.27 per Share, and Cash Flow From Operations of $85.9 Million for Fiscal 2021

20 May 2021

> FISCAL YEAR 2021 HIGHLIGHTS

– Mined 964,925 tonnes of ore and milled 967,581 tonnes of ore, up 9% and 8%, respectively, compared to the prior year, with silver and lead production meeting the production guidance and zinc production beating the production guidance
– Sold approximately 6.3 million ounces of silver, 4,700 ounces of gold, 67.1 million pounds of lead, and 27.9 million pounds of zinc, up 1%, 42%, 3%, and 10%, respectively, compared to the prior year;
– Revenue of $192.1 million, up 21% or $33.3 million compared to $158.8 million in the prior year;
– Net income attributable to equity shareholders of $46.4 million, or $0.27 per share, up 35% compared to $34.3 million, or $0.20 per share in the prior year;
– Cash cost per ounce of silver, net of by-product credits, of negative $1.80 compared to negative $1.91 in the prior year;
– All-in sustaining cost per ounce of silver, net of by-product credits, of $7.49, compared to $6.86 in the prior year;
– Cash flow from operations of $85.9 million, up 11% or $8.7 million compared to $77.2 million in the prior year;
– Received $6.5 million (CAD$9.0 million) break fee from Guyana Goldfields Inc. and realized a gain of $15.4 million on disposal of the shares of Guyana Goldfields;
– Paid $4.4 million of dividends to the Company’s shareholders;
– Invested $5.8 million in a private placement of New Pacific Metals Corp. (NUAG) to maintain the Company’s ownership interest;
– Acquired a 26.99% interest in Whitehorse Gold Corp. (WHG), having a fair market value of $15.1 million as at March 31, 2021, as a result of (a) receiving 5,740,285 WHG common shares under a spin-out transaction completed by NUAG, and (b) subscribing for 5,774,000 WHG common shares at total cost of $1.3 million under a private placement;
– Won an online auction to acquire the exploration rights to the Zhonghe Silver Project from the Henan provincial government of China, with the mineral rights transfer contract pending the national security clearance by the related authorities;
– Acquired a 43.8% interest in the La Yesca Silver Project in Mexico through a new corporate structure, New Infini Silver Inc. for approximately $9.1 million; and
Strong balance sheet with $199.1 million in cash and cash equivalents and short-term investments, an increase of $56.6 million or 40% compared to $142.5 million as at March 31, 2020. This does not include $212.1 million in total market value of investments in associates and equity investments in other companies as at March 31, 2021.

http://silvercorpmetals.com/news_and_media/news/silvercorp-reports-net-income-of-464-million-027-per-share-and-cash-flow-from-operations-of-859-million-for-fiscal-2021-

Exactly that, Ex.
They all make decent profits at these prices right now.
However, at several 100 dollars lower, they still make money.
The producers are at the perfect spot for the next leg up, to generate cash to invest in new properties.
That’s where I think a lot of gains can be made, in good quality properties. Now just in the exploration fase.
Must say that most of them will not get that far because of many different reasons.
Some still have an outstanding property, with new possibilities to explore them.

Look at Slave lake zinc, it hasn’t been explored for at least 50 years! It’s unknown what they can find, however there are indications for mainly zinc and lead, but also gold and silver. Those are the project I’m getting a warm feeling from. Those are the chances in this sector you are looking for.

For Copper and Tin. (yes Tin!) I’d take a look at CUSN, that could become a mine again and right now they are targeting drill spots, await the results as we speak.
It’s in SW England, very high grade mine with a huge resource waiting to be mined out.
Furthermore: a company is looking for lithium as well, they’ve made a nice arrangement, beneficial for both sides. When they drill for lithium, they find copper and Tin as a byproduct. Perfect for CUSN to base new targets on, etc.

I’ve seen MTH here already in the show. I think that property might become a future mine, all indicators are green for that to happen.
Gold in soil, and in hardrock. 2 irons in the fire, and if they find a feeder on the property all bets are off.

Developer: LMG; Good project, they just need to get things cleaned up, and by the looks they might pull that off easy. very low outstanding shares, had a rough time as many companies had. Now is the time for them to get things going.

Often I’m just reading here, but thought I’d put my 10 cents in this am. 😉
I could mention some more projects but the 4 mentioned right now are the ones with low risk (if that’s ever possible) and higher reward in the exploring and developing sector.

The only negative factor I see right now regarding margins is the fuel costs that are up roughly 40% from last years lows…..eventually wages may become a factor too but at these PM prices both are offset still

Hi Argentum. Nice to see you posting here at the KE Report.

Yes, you are spot on. The producers are in (and have been in) a sweet spot in regards to their production margins, and even if Gold dropped a couple hundred dollars, or silver fell by 4-6 dollars, the producers would be just fine. However, with metals prices at these elevated levels, they are cash cows right now, if they had debt they are paying it down, but more importantly they are investing in exploration again (either their own projects, or many producers are taking strategic stakes in junior explorers that are looking for what they want to find – large district scale projects).

On the gold exploration size, I don’t know much about Lincoln Gold, but will have a look if you think it is prospective. As for Mammoth Gold (MTH), yes, it is early stage still, but I have a small position in place and feel Thomas & team is doing the right work to make a great discovery there. I’ll be awaiting more exploration results with keen interest.

As for Tin, yes I’ve looked into Cornish Metals and it seems quite prospective. I used to own Metals X and Aussie company that has one of the largest Tin mines on the planet. Strongbox is another good one. Right now my 2 main Tin exposures are with Tinka resources (known for their Zinc/Silver development project, but they also have a Tin resource further at depth) and more recently Eloro Resources (exploring for high-grade Silver in Bolivia, but they pulled out some healthy Tin numbers in recent channel trenching, and they could be onto one of those massive Silver/Tin deposits that Bolivia is known for).

Cheers!

Wolfster – Yes good points on the rising input costs on the producers, with fuel and labor being 2 of the highest costs for a producer, and those are on a rise, but luckily their margins have gone up multiple-fold and have more than offset those, but it is something to keep an eye on. Another variable is the currency exchange rates in the companies they operate in. If they are in countries where the dollar’s weakness leads to their local currency’s strength, then this could be another rising input cost as they pay their labor in local currency (which could be rising). Taxation is another issue, as we’ve seen recently by the terrible leftist policies being introduced in Chile & Peru, and hoping they don’t spread to Argentina, Brazil, or Ecuador. Also, Mexico has raised taxes in years past which impacted a number of the Silver miners, so hopefully they keep things in check in that country.

+500 Wow BDC. Congrats man! 500% on those GDX call options was a great return.

I don’t play in the options space, but respect those that can effectively invest in that way.

Thanks! Unfortunately my current gains now come from JNUG and JDST. One goal is to swing trade GDX options — after finalizing STATS, which should be soon. In the mean time I will post anything significant which pops up, especially during the pre-market.

Thanks BDC. I appreciate your input and keeping things on folks radars here at the KER.

I’m not well-versed enough to swing trade the GDX options, but I wish you all the best in your trading, as always.

Yes, the Chinese are using their printing presses and funny money to buy resources to build infrastructure, build out their power grid, and it makes sense. Most of the west from the EU, to the US, to Canada are using their printing presses to fund “woke” collectivist nut job agendas, to introduce more restrictions on their citizens, and bail-out failed business policies. It’s a stark contrast once again, but what China is doing makes far more sense for the long game.

As for the Gold Standard or Sound Money returning, I’m far less optimistic that this will ever happen again. The Great Reset theme from Davos was about having less stuff, less individual liberties, and less control of one’s future and the powerbrokers that be saying that “and you’ll like it”. It’s far more likely they are biding their time for a bunch of conflict from the Currency Wars race to the bottom, where eventually, after enough outcry from the sheeple, that they’ll waltz in and reveal their new Global Currency. That’s been the master plan all along from globalist deep state elites, and now with Covid making tangible Cash dirty and unsafe, and with the advent of Cryptocurrencies, it has only paved the way for the masses to accept government Digital Currencies. At first citizens may have a digital wallet of the world’s fiat currencies, but over time, it will be replaced with WorldCoin, and then they’ll have everyone by the balls… All will be tracked and taxed, and if someone doesn’t accept the Global Goons agenda and has a low social credit score, then their WorldCoin can simply be deleted.

It’s a Brave New World…. 😮

LOL! blazesb. That comment was funny, with conquering Worldcoin, and just got you a lifetime free membership. Haha!

Seriously though, thanks for the kind words. For now, I just enjoy ranting here and at ceo.ca, but had no idea you were reposting my commentary on stockhouse. That forum can be a bit rough around the edges, so I hope my comments are helpful in some way to investors, and not met with too much trolling. 😉

Your kind sentiment is much appreciated. Ever Upward!

Sure, we could collect, oops c-word violation, make that ‘stack’ worldcoins in our cyber warehouse. So much better than wasting valuable space with silver and gold bars!

Cheers.

Haha! Sure…. If the globalists get their way their centralized “WorldCoin” would just get foisted upon the world, and likely be “stacked” in citizens new digital wallets. The only way to conquer it, is to stop it before it comes out and sadly, I’m guess folks will beg for it in the end as more “fair” or “equitable” for the nations of he world. The people will miss the whole point that it has taken away even more freedom and consolidated the power from the many into the hands of the few. If there does come to be a point where there is only 1 medium of exchange like that, and people get boxed out or blocked out, then they are lost. As a result, people will be forced to comply with whatever arbitrary rules are imposed so as not to endanger their stash of globalist WorldCoin.

I’m hoping we don’t see something like that play out, but the trends in motion to have a more Technocratic society where AI and Big Data manages the masses is apparent on many fronts. Having a global currency has been on the elitist’s wish list for some time, but they’ll need a collapse of the old fiat systems first, for there to be a big enough problem to garner a big enough reaction. Then they’ll ride in with their “solution.”

Until then, we’ll just need to appreciate the “good ole’ days” as long as they last….

Matt,
Good to hear. I hope silver gets to or past the $60 mark on this next move. I imagine it will plunge back to 40$ after that but…eirther way the stock should raise main street’s eyebrows.

Howdy Ex,

(A) and (B) have yet to be determined; (C) is unlikely: https://postimg.cc/jDtcWgYZ

VIZSF is now at Chapman Wave F or G up from its March low. Two significant ABCD extensions average 2.36 (May 18th high 2.37). A minimal pull back to the 1.68 – 1.84 area is possible.

Vizsla has followed general market conditions so far!

Thanks BDC. I was beginning to think no technicians were going to respond to the above questions.

I tend to agree, as mentioned, that a pullback seems more likely, and I’m leaning towards option (B) where the pullback may actually form the handle after that big rounded bottom cup shape, and could present a good buying opportunity on that move down. The cup & handle pattern, if that is what plays out, is a bullish one, and there would be a measured upside move coming out of a pullback into a handle formation.

Thanks.

Sure thing!

Vizsla’s second ATHBO (all time high breakout) has been achieved on significantly lighter volume, which also brings ~1.50 into range: https://postimg.cc/ykMQ441p

Summer doldrums may be broken by the next upsurge in PMs.

It was a teaser…….as you were about to make your most profound statement ever here on Ker

Agreed Wolfster. Wh……

https://www.youtube.com/watch?v=nT4-HYzo3PQ

Understood. Mayfair (MFG) looks interesting that Erik mentioned.

Personally, I’m willing to go into riskier jurisdictions if the resource prize is worth the candle, and have done quite well investing in the “riskier” jursidictions.

In my portfolio some of the best gains have been in the Silver miners in Mexico, even when many were concerned about cartels and taxes. I’ve done well in West Africa for years in Gold miners when many wouldn’t touch them when they see the word Africa. A few years back there were great returns in Papua New Guinea with K92, and I’m still bullish on Lion One in Fiji where most shy away.

As for South America, sure it is risky, but so is the US, Canada, or Australia in many local jurisdictions that block mining projects, or slow walk permits, so there is no perfect jurisdiction. I’ve made a nice chunk of change in Jaguar Mining in Brazil, made a bit on SolGold in Ecuador, did well with Mako Mining in Nicaragua, have been upping my position in Calibre Mining lately since they are just killing it in Nicaragua, and hold Silvercrest in China (which many are afraid of) who has a large stake in the Bolivian silver explorer New Pacific Metals. When I saw the Tin numbers mixed with the Silver grades that Eloro Resources just unearthed, I believe they have the potential of finding a true Tier 1 deposit, so I’m willing to take the South American risk. What worries more more in South America now is Chile and Peru. I do have some exposure to both countries at present, but am not looking to take on more exposure to either country right now unless things change, or unless the deposit is so amazing that it’s worth the gamble.

Correction: That should have said Silvercorp, not Silvercrest. (although I do own both)