Craig Hemke – The Monthly and Quarterly Closing For PM Stocks Can’t Get Much Worse, Does That Mean It’s A Bottom?

June 30, 2022

Craig Hemke, Founder and Editor of TF Metals Report joins us to share his outlook for gold as we turn the corner into the 2nd half of 2022. The monthly and quarterly closes for gold and silver stocks could not get worse as all have broken key support levels and are now at multi-year lows. Craig outlines some scenarios that he thinks could drive investors into the precious metals but be aware the bear market could stick around for some time.




Click here to visit Craig’s site – TF Metals Report.

    Jun 30, 2022 30:54 PM

    I have been out of Calibre Mining for at least two months. This stock is now selling for 97 cents CDN. If there is a crash in late September into late October who knows what you will be able to buy many of these stocks for, this is so much like what happened in 1929. Then like now nobody except for a very few saw what was coming. The market is sneaky it keeps killing your portfolio by inches and then it washes everything up. DT

      Jun 30, 2022 30:22 PM

      Yeah, I’m personally invested in Calibre Mining still, and they are KE Report sponsors, so I’m biased, but am a bit shocked that they’ve continued to sell off so hard while continuing to do such good work operationally and on the exploration front. This week they put out really good high grade drill results from both Nevada and Nicaragua, and just put out a good operational update and multi-year outlook last week. There aren’t many companies that are continuing to execute on all fronts – exploration, development, and production and exceeding expectations, but Calibre is, despite their continued selling pressure. It remains one of my largest gold positions, and I’ll likely add more down here now that CXB is under a buck.

    Jun 30, 2022 30:24 PM

    Here’s another growth-oriented producer (MKO) that I hold in my portfolio, that is also a KE Report sponsor, so again, I’m biased, but they are also doing all the right kinds of work, in my opinion, to continue building real value with the drill bit and operationally.


    Digging Into The World’s Highest Grade Open Pit Mine | Mako Mining (TSXV: MKO)

    Jun 29, 2022

    Jun 30, 2022 30:40 PM

    It seems management is exceptional in caliber. I was debating buying some. In the interview there was no mention of the political risk. Any thoughts on that?

      Jun 30, 2022 30:03 PM

      Hi Steve. Yes, I personally follow hundreds of management teams, and I feel the execution of the team at Calibre is top notch, and I don’t see very many companies outworking them, exceeding expectations, doing drill programs with 15-18 drill rigs, increasing reserves to the same degree, nor developing, permitting and bringing so many satellite pits and underground mines into production in sequence.

      Some of that speaks to how their operations are going in Nicaragua, which like all Latin American countries, has it’s degree of jurisdiction risk, but then again, look at how well their permitting new projects has gone, prior acquisitions, and starting up of new mines. I don’t see Canadian, US, or Mexican companies moving at that fast of a clip… the only comparable on the quick turnarounds would be West Africa (also perceived to be risky, yet far more mines get into production in those countries than most other ones).

      Also, when we’ve talked with Mako Mining, they are seeing the same thing of quick turnaround times on permitting and getting production going, mostly supportive communities glad to have the jobs, roads, healthcare, job training, etc.. Some knock the government of Nicaragua and blame mining companies for supporting that through the taxes they pay, but I see it as these companies are doing far more good for their local communities and bringing far more to the table for their local stakeholders than if the government were to run these mines.

      With Calibre, they’ve also diversified into the #1 gold mining jurisdiction on the planet – Nevada, with their takeover of Fiore which started last year and was completed in January of this year. This gives them the operating Pan Mine (doing around 45,000 ounces per year ) with exploration upside, the Gold Rock development project with exploration upside that could bring in another 50,000 ounces of production per year when it is developed in 1-2 years, and also the exploration property Illipah also in Nevada. In addition to that, we haven’t even really discussed with them Golden Eagle project they picked up through the acquisition of Fiore, which has a historic resource of 2 million ounces of gold, because it is in the state of Washington in the US. I’m far more concerned that anything would ever get developed in Washington state than I am about Nicaragua.

      That’s my take on the jurisdiction risk – Yes, the risk is always there of something going off the rails in Latin American countries, but I’m far more concerned with places like Guatemala, El Salvador, Venezuela, Panama, Colombia, or even Ecuador that supposedly was improving but hasn’t impressed me much, or look at the disaster that Peru and Chile have become. Also, most of the states in the US are not good for mining outside of Nevada, Idaho, Arizona, Wyoming, and around Stillwater in Montana, and there are plenty of companies flagging projects in states like Michigan, Minnesota, Alaska, California, the Carolinas, Texas, etc… that likely won’t ever happen and have even more jurisdiction risk. Even in Canada, think how many times First Nations or radical environmental groups block projects or kill projects or hold projects hostage for special interest groups to get a cut, so it isn’t like Canada is risk free either. Heck even in Mexico and Australia, which have also been seen as “mining friendly” there are more and more pressures to block projects, stop projects, blocking new permits etc…

      It is risky to develop mining projects anywhere… and there are so many other risks to all stages of mining companies. That just comes with the territory of investing in extractive industries period, and I feel companies in Latin America and West Africa trade at a substantial discount to North American or Aussie companies for the higher perceived risks, so that is always a factor. Thus far, I’ve been impressed with the progress both Calibre and Mako have made in Nicaragua, and have been impressed with the speed of permitting and their ability to get mines into production, but yes, I do consider it risky from a national government standpoint.

    Jun 30, 2022 30:55 PM

    Thanks to Shad and Corey…Craig is very clear and plain in his explanations of the moving parts involved…I appreciate that…The more times I here the fundamental precious metals story the more sense it all makes….

      Jun 30, 2022 30:05 PM

      Thanks for that kind feedback Larry. There are days where we wonder if anyone is actually listening to the interviews we do, and that is much appreciated. Cheers!

        Jun 30, 2022 30:02 PM

        I listen….Because I found a remarkable site to learn at….Why would I quit listening when my goal is to understand…Which is your product…understanding…glta

          Jun 30, 2022 30:14 PM

          +1 Very well said Larry, and agreed 100%. We should all work to keep learning from all the knowledge and insights shared here at the KE Report by so many fantastic contributors… on the show and on the blog.

          As the saying goes… “In life, if you are green you grow, and if you are ripe you rot.”

    Jun 30, 2022 30:19 PM

    GSilver(GSVR) was mentioned yesterday and their purchase of Great Panther(GPR) Mexican operations. Those guys also seem focused and well organized with their plan to revive the historic Guanajuato district.

      Jun 30, 2022 30:11 PM

      Agreed Terry. James and team have been doing a good job turning around the El Cubo mine that they acquired from Endeavour Silver, and so we’ll see if they can replicate that with the Mexican mines and projects they are picking up from Great Panther. Great Panther sure didn’t work any wonders with them, but I’ve got more confidence in the team at Guanajuato Silver to get them moving in a better direction.

      In some respects G-Silver is taking a page from Santacruz Silver’s playbook here and growing in mines, resources and projects through acquisition down at these low valuations, and both have the potential to become legitimate mid-tier producers over the next 1-2 years as they get all these mines and development projects scaled up.

      I already had a nice position in Santacruz that I’ve scaled back some to pull profits, but did decide to add back my Guanajuato Silver position today on this news, as I like that strategy much more than companies floundering around trying to pincushion drill their projects into swiss cheese only to never actually move them forward. It is waaaay easier to just buy some already producing mines at these prices than it is to drill, permit, develop, and construct mines in this inflationary environment. It is for these reasons that I believe we’ll still see more producers acquired by the larger players, to simply takeover their mines and optimize them, over trying to acquire the larger development projects.