Ed Moya – US Dollar Continuing Higher, Bitcoin Breaking Higher All While Investors Weigh Continued Growth Fears
Ed Moya, Senior Market Analyst at OANDA joins us to recap some of the early market moves to kick off this week. We start with the continued rise in the US Dollar that has now risen to over 99 on the dollar index. This ties into a discussion on the potential of war premiums still driving certain sectors. We also discuss the cryptocurrencies which have bounced along with the broad markets. The oil sector brought up combined with OPEC policies.
Click here to visit the OANDA website to follow along with Ed’s daily note.
And AMC is up a ridiculous 32% because of its new stake in HYMC. So, HYMC added something like $100M in market cap today while AMC added well over $3B for its piece of that $100M gain!
It must be those WallStreet Bets apes squeezing the shorts once again, because yeah, AMC’s position in HYMC doesn’t begin to explain the market cap growth in AMC on this news. Those are just the kind of inefficient markets and dislocated company valuations we are in these days.
Part of it is probably due to the fact that AMC has a lot more cash that it is willing to invest similarly. Still, that’s a lot of success getting priced-in at once.
There have been some rumblings of the Reddit, Wall Street Bets, Robinhood/Stash/WeBull crews going back into Meme-Stock short squeezes over the last week or so. My buddies that trade those are all banging on their drums about them again. Look at GME Gamestop up close to 24% again today also going up over a billion dollars in valuation… or Bed Bath and Beyond up over 12%. None of that is warranted logically either, but the shorts were getting over-confident that the meme-stock craze was over and buried so the apes are squeezing them again today to kick off the week.
Very much the case matthew.
Now if only pgm would garner the same interest by amc, as their latest news release states they only have 9M in cash, need much more and hoping Sprott or others come to their aid, as otherwise won’t be solvent.
Yeah, I saw that 42% fishing line sell-off today in PGM Pure Gold, as I have a small stake in them, and noticed it was because they want to raise money over the next 30 days.
(PGM) PureGold Mine Operations Update and 2022 Corporate Outlook
by @nasdaq on 28 Mar 2022
It’s been years since I owned PGM.
Yeah, it looks like PGM could go down and likely make a double bottom now, but the market reaction today to the news release, seems a bit overdone, ignoring all the other news and just solely focusing on the needed capital raise. I’d expect that gap above that was just created will get filled in the medium-term, after forming a bottom on this financing news, and then rebounding back higher again.
It will be interesting to see if AngloGold Ashanti comes back in again for this financing, or if they just say screw it and take over Pure Gold to bolt it on as another mining operation. At this point that might be the more desirable outcome, and I’m sure the Oxygen Group would like to unload this one to focus on more exploration/development projects.
In reading the news release, they just replaced almost the entire Sr. management team, and have a number of exploration and resource expansion areas underway, but with only $9 million left in the treasury, they need to raise funds to keep progressing things and have upcoming debt repayment obligations, so they reached out to Sprott for options.
Here’s a blurb on capital needs from that part of the presser:
“The Company expects that, in total, over the next six months, it will require approximately $50 million of external financing to bring the Company to a state of sustainable positive free cash flow at the corporate level. Assuming the required capital can be secured, the Company expects to achieve sustainable positive free cash flow by the end of 2022. This external financing could take a variety of forms including debt or equity and may include proceeds from option or warrant exercises. The Company is currently evaluating several financing alternatives and will provide a further update when such information is available.”
Wow people are understandably really irate over at ceo.ca regarding Pure Gold, with dozens of very inflamed responses, and also including attorneys trolling the board advertising their services to sue for damages. Again, while there is no doubt that the Pure Gold Mine has struggled under the prior management team to get ramped up to commercial production fast enough and at high enough grade to bring in the projected revenues, it is still a great project, all the gold is still there, and there has been extremely encouraging exploration at the “8 zone” that warrants more follow up drilling and expansion.
The people there were even accusing Kitco of cauterizing the wound by putting out this take on the news, but honestly, the vast majority of the Pure Gold press release, was constructive on how the mining was going to be optimized and how the operations would be on track in a year. The financing issue is a going concern, as the company stated, but it’s an operating mine and they’ll get it financed, but maybe not at great terms. Regardless, Vladimir at Kitco was not incorrect or out of line to have gone with this title in response to the news release.
Pure Gold expects production and grade improvement at its gold mine in Ontario in 2022
Vladimir Basov – Monday March 28, 2022
Check out HYMC post market. Sold some pre market at $1.70 on nice pop since buying Friday at $1.29. Never saw this action coming like freight train…
Will it see $1.70 again?
What a bogus day. The lack of reality gets unreal.
“Nibbled” an initial position in FSX today. Fury breaking down again and hope to add some more when it gets down to $.60-$.62.
Hey Doc. Thanks for the trading update. As we discussed the other day, Fosterville South is one I’m considering back into as well, but I went after Zacatecas Silver first after speaking with Bryan about both of his companies the other day. I’m thinking Bryan and team may be able to replicate what they did at K92 Mining (KNT) by taking a development project off a major, and moving it into production and showing how much more upside there is at the project. KNT was a big win for me personally from 2018 to 2020, and Bryan has assembled many of the same people from K92 Mining and put them on over at Zacatecas Silver, to work on developing that newly acquired Esperanza Gold project from Alamos Gold.
As for Fury, yeah it’s been in a downward move for the last 2 years, but it is starting to look very attractive at the present valuation, especially when considering just what their equities stake in Dolly Varden is worth at present, which leaves the rest of the their projects extremely undervalued. I started a new stake in FURY on the 18th of this month @ $.69, and if it falls to that $.60-$.62 level you just highlighted, then I’d add a 2nd tranche there. Keep up the nibbling!
Believe Zacatecas Silver is another one that Doc Jones recently added to his list
Yep, Doc Jones is constructive on Zacatecas Gold for sure.
HYMC up 76% today, crazy!!