Dave Erfle – Precious Metals Sector Status As The Markets Await CPI Data and Fed Meeting Minutes
Dave Erfle, Founder and Editor of The Junior Miner Junky, joins us to review the waiting game in the markets around the CPI inflation data to be released this Friday, and any messaging from Jerome Powell and Fed officials in next week’s FOMC meeting. We review both the technical and macroeconomic drivers affecting the precious metals sector, and related mining stocks. However, there are also concerns that lower prices may be in store in the precious metals sector, especially the gold and silver mining stocks we see any further turbulence in the general markets, coinciding with further rounds of Fed rate hikes. With so much uncertainty in the markets, Dave is comfortable keeping a healthy cash position in place for now to have buying power to take advantage of further pullbacks. We also discuss some of the technical support levels in the mining stocks via GDX, and GDXJ that could come into play in a capitulation event.
We wrap up this discussion on a bright note, reviewing the recent stellar exploration results released by Lion One Metals (TSXV: LIO) (OTCQX: LOMLF), with drill assays returning 20.86 g/t Au over 75.9m, including 43.62 g/t Au over 30.0m which includes 90.35 g/t Au over 7.2m, beneath the current resource fully within the permit boundaries of the Tuvatu mining lease. Dave pointed out that in this volatile sector, that in only takes a few companies shares moving higher in such a big way to form a hedge to the rest of ones resource stock portfolio. When we see any mining stock go through big moves, similar to what we’ve seen the last 2 days in Lion One, then it can really change the overall performance of one’s overall portfolio, so the volatility can definitely move in both directions.
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Lion One – Sergio Cattalani discusses Tuvatu’s Geology
Lion One Metals – Jun 7, 2022
Eloro Resources has been catching bids moving higher. The real sensational advances will be made by shares of solid conservatively managed resource stocks that cautious investors would select with an eye to becoming a mine! DT👀
The gateway to fortune is being able to spot the enormous deposit after the discovery phase, and waiting for the rest of the market to catch up! DT😎✔
+1 Great point DT.
Another Proposed Major Miner Merger Lifts the Gold Complex
David Erfle – Friday June 3rd, 2022
“As covid restrictions were being lifted, deal flow among gold miners increased significantly into late 2021 with the value of the top five gold mergers totaling $16.1bn. The volume of mergers and acquisitions (M&A) jumped last year as well, with the largest being the $10.6bn combination between Agnico Eagle Mines (AEM) and Kirkland Lake Gold announced in late September.”
“While there was a rush for deals directly following the announcement of this high-profile merger of equals, M&A activity slowed in the mining sector after Kinross Gold (KGC) forked out $1.4bn for Great Bear Resources in December. In fact, M&A deal flow had mostly dried up in the mining complex until this week.”
“On Tuesday, South African mining firm Gold Fields (GFI) announced a deal to buy Canada’s Yamana Gold (AUY) in a $6.7bn, all-share deal. The proposed combination would turn two senior gold miners into the world’s fourth largest producer.”
https://mailchi.mp/4eb91e1d08a9/david-erfle-weekly-gold-miner-sector-op-ed-1600974
Junior Mining Stocks Are on The Verge of a Very Substantial Rise says Fund Manager Willem Middelkoop
MiningStockEducation – Jun 7, 2022
“Fund manager Willem Middelkoop shares that junior mining stocks are on the verge of a very substantial move. He points out that the Toronto stock exchange venture index just made a new low relative to commodities. Thus, indicating we have probably reached a bottom. Willem discusses his fund’s approach to investing in this interview. He also warns retail mining investors that the Canadian venture markets are worse than the wild west because the bad players never get punished. Whereas in the wild west the bad guys eventually got shot. Willem Middelkoop is the chairman of the Commodity Discovery Fund’s management team and is ultimately responsible for the fund’s investment policy. Willem is one of the pioneers of discovery investing and is the author of seven books on economics and financial markets.”
Bought a smidgen today—-first time in a week—there is no hurry.
Nice to see you nibbling Doc. I did some nibbling on Tuesday of last week and then trimmed back two uranium stocks on Thursday, then added to some PM and uranium stocks on Monday, and then one more today. I’m down to 2.5% cash after these purchases over the last 2 weeks (which I realize is likely taking way too big of a risk, so I may need to trim back a few more PM positions on any rallies in the near-term.)
Have you been watching the trading in the Uranium stocks lately?
There have been a few days with really solid moves to the upside in the U stocks (including today).
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Symbol – Uranium Stocks – Daily Change % (06/07/2022)
WUC.CN Western Uranium & Vanadium Corp. +32.89%
FSY.TO Forsys Metals Corp. +19.64%
VO.V ValOre Metals Corp. +18.75%
LAM.TO Laramide Resources Ltd. +17.31%
AEC.V Anfield Energy Inc. +16.67%
EU.V enCore Energy Corp. +16.13%
UEC Uranium Energy Corp. +15.40%
LEU Centrus Energy Corp. +15.01%
ISO.V IsoEnergy Ltd. +14.66%
STND.V Standard Uranium Ltd. +13.64%
PTU.V Purepoint Uranium Group Inc. +13.33%
GXU.V GoviEx Uranium Inc. +13.33%
UUUU Energy Fuels Inc. +12.94%
MGA.TO Mega Uranium Ltd. +12.77%
FIND.V Baselode Energy Corp. +12.38%
URG Ur-Energy Inc. +10.69%
FCU.TO Fission Uranium Corp. +10.39%
CUR.V Consolidated Uranium Inc. +10.28%
FUU.V Fission 3.0 Corp. +10.00%
NXE.TO NexGen Energy Ltd. +8.98%
GLO.TO Global Atomic Corporation +8.92%
DNN Denison Mines Corp. +8.73%
UROY Uranium Royalty Corp. +8.47%
CCJ Cameco Corporation +8.13%
CVV.V CanAlaska Uranium Ltd. +7.69%
UEX.TO UEX Corporation +7.27%
URNM Sprott Uranium Miners ETF +7.01%
UUSA.CN Kraken Energy Corp. +6.40%
URA Global X Uranium ETF +5.98%
LTBR Lightbridge Corporation +4.74%
GCL.L Geiger Counter Limited +4.47%
QRC.V Queen’s Road Capital Investment Ltd. +4.05%
U-UN.TO Sprott Physical Uranium Trust Fund +3.47%
BSK.V Blue Sky Uranium Corp. +2.86%
AAZ.V Azincourt Energy Corp. +2.78%
NLR VanEck Uranium+Nuclear Energy ETF +1.58%
I got some AGX couple of days ago. There’s alot of silver in Peru and I want some of it. Been watching and watching UUUU and UEC then bingo yesterday…missed it.
Yes, when the Uranium stocks move, they really can turn on a dime and make outsized moves.
We saw that big move higher last week on the 2nd and then again yesterday and today in the U-stocks.
Most of the uranium miners respect the technicals well, and it’s best to buy them when the indicators are mildly oversold, since they’ve been in an ongoing bull market and most pullbacks and corrective moves will be quicker and more shallow than most expect.
Personally I exited the majority of my Uranium positions in Sept-Oct last year, which was about a month early as they topped in early November. I accumulated them back from tax loss selling the end of last year into Jan/Feb of this year (when we started hearing more chatter that the move in Uranium stocks was over… nice contrarian indicator, as clearly the move is nowhere close to being over). Since the beginning of this year the stocks had a nice tradable rally up into mid-April, where I did a bit a of trimming (but not enough), and then they pulled back again with everthing else from mid April through May. I’ve added back to them over the last few weeks, and now they are bouncing again and I trimmed a few back last week, but added a bit on Monday, and today was an epic launch higher again.
You gotta be in it to win it. 🙂
Uranium Market Minute – Episode 135: Doctor, We Have A Pulse
Uranium Insider w/ Justin Huhn – Jun 7, 2022
I had sold out of Nobel Resources and took the loss last year. Recently bought back in around .07 US. It has had two unexplained pops and the one at close today put me at +113% for no reason. May be worth a watch.
My bad. I bought under .06, but same narrative
Wow. A nicely timed acquisition there of Nobel Resources Lakedweller2. Well done!
I’ve not really looked into them, but agree there didn’t seem to be an immediate catalyst as to why the stock was up 61% just today alone. Some investor chatter was that maybe there was a leak about the new project being acquired they had teased 6-8 weeks ago. Maybe that explains it, or maybe a larger fund or high net worth investor just jumped into the pool. Who knows, but that is big action on a microcap stock.
Here’s an interesting bearish take on the future of Cryptos, that goes a bit to the extreme suggesting the main allure and reason most are interested in cryptocurrencies are because of doing black market illegal deals. That’s a bit silly as a notion, because while there are some using the anonymity of cryptos to commit crimes, the vast majority of retail punters are just in the cryptos for a speculative new tech trade, and that is what caused the epic runs in Bitcoin, Ethereum, Ripple, Cardano, Polkadot, Solana, and even the joke cryptos that surged in manias like Dogecoin and Shiba Inu…. Those price moves weren’t because of cyber-criminals, but rather due to cyber-speculators.
It will be interesting to see, with regards to this worst case scenario for the cryptos, if this causes any of the capital fleeing that sector to eventually migrate over to the commodities, either into the Battery Metals and Energy Metals, or into the Precious Metals.
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When The Crypto Crisis Hits (And It Soon Will), The U.S. Will Be Forced To Strip Away The Cloak Of Anonymity That Facilitates Criminal Acts And Which Gives Crypto Its Allure
June 7, 2022
On the other side of this debate, we see those pushing ahead with regulation of cryptos, which many view as further acceptance as another trading vehicle and financial asset class. It’s interesting that they are being classified as “commodities” when the necessary crypto mining actually burns up many commodities, sucking down electricity generated by coal, nat gas, nuclear, biofuel, or to build out hydro, solar pannels, or windmills…. in the process of creating digital algorithms for proof of work.
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Bitcoin, Ethereum And ‘Dozens Of Others’ To Be Classified As Commodities, According To New Crypto Legislation
Shiv Juneja – Benzinga – 9h ago
(FSM) Fortuna Silver Mines drills 18.3 g/t gold over 11.9 meters at the Séguéla Project, Côte d’Ivoire
June 07, 2022
https://ceo.ca/@nasdaq/fortuna-drills-183-gt-gold-over-119-meters-at-the
This was the Lion One news we discussed with Dave Erfle today in that interview above.
(TSXV: LIO) (OTCQX: LOMLF) Lion One Discovers Major New Gold Feeder Structure – 20.86 G/t Au over 75.9 Meters at Depth Beneath the Current Resource at Tuvatu, Fiji
6 Jun 2022
https://ceo.ca/@newsfile/lion-one-discovers-major-new-gold-feeder-structure