Dave Erfle – Technical and Macro Outlook On Precious Metals and More Mining Merger Mondays
Dave Erfle, Founder and Editor of The Junior Miner Junky, joins us to share a couple key technical support and resistance levels he is watching in gold, silver, GDX, and GDXJ and some of the fundamental macro drivers he sees continuing to shape the markets.
We then pivot over to the continued theme of more “Mining Merger Mondays” in the precious metals sector, with 2 more transactions announced this week. We discuss both the I-80 Gold Corp (TSX: IAU) (NYSE: IAUX) takeover of Paycore Metals (TSXV: CORE), and the merger between Integra Gold (TSX-V: ITR; NYSE American: ITRG) and Millennial Precious Metals (TSX-V: MPM, OTCQB: MLPMF). This leads into a larger discussion on the pitfalls and opportunities of holding development stage assets with ounces in the ground at different parts of the sector and how M&A deals can be both a boon and a bust for investors depending on their investment goals, time horizons, and when and what price they got into positions.
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That is a solid point Alpha, and I think that the combined Integra and Millennial Precious Metals is a far more enticing company than Gold Standard Ventures was even after merging with Orla Mining, and GSV was also picked off when it was plumbing it’s lows in just the same way, and didn’t present as much upside in their new combined company.
Personally, I got into GSV just a short while before it was acquired, so I was in the minority in that I made a little money on it, but sold after the news broke and GSV got adjusted higher.
It’s a little different on this more recent merger discussed with 2 advanced explorers/developers… compared to Gold Standard Ventures going to Orla that already was a producer of open pit near surface gold. Personally I think Integra and Millennial together is a monster company in the making, and we interviewed Jason the CEO today and will be posting that in the morning, so stay tuned…
Gold Investors Still MIA
Adam Hamilton – Feb 24, 2023
http://www.321gold.com/editorials/hamilton/hamilton022423.html
Metallic took off on the following news:
Yes it did, and we interviewed the CEO, Greg Johnson, and posted that interview to the site this afternoon.
15 minute gdx says exit to me…..will asses the retrace to consider back in…..ABCup has hit targets and the daily is still single leg A up and at OUL,oscilator unchange line, resistance…glta…ther are reasons to stay…i will see..
So far it has moved bullishly sideways to its steeply rising 15 period MA where it has caught a bid in the last minute or two. The fact that sellers couldn’t even take it below that R2 price pivot suggests that a “bigger” chart might be in charge, maybe the 60 minute.
15 minute GDX:
https://stockcharts.com/h-sc/ui?s=GDX&p=15&yr=0&mn=0&dy=7&id=t1524019130c&a=1364097795&r=1677693945053&cmd=print
TSX.v looking good on the daily chart.
Daily, weekly, monthly the TSXV looks great:
https://stockcharts.com/h-sc/ui?s=%24CDNX&p=D&yr=1&mn=5&dy=0&id=p51301099229&a=1219911686
All weakness since early August warranted buying.
Monthly:
https://stockcharts.com/h-sc/ui?s=%24CDNX&p=M&yr=19&mn=0&dy=0&id=p96042722239&a=1269638499
I see a similarity to late 2004 to now on that chart, Imho.
Nice charting, TSX.v closed on its’ high today also.
Yes throughout the sector there are a lot of similarities to the early 2000s but I think the current setup is much more bullish and will provide greater gains as well as greater volatility. It won’t be an easy ride for most.
GDXJ hit a 2.6 week high vs SOXX today:
https://stockcharts.com/h-sc/ui?s=GDXJ%3ASOXX&p=195&yr=0&mn=7&dy=11&id=p38147762432&a=1357093124
QQQ is down 7%+ in 3 days vs SILJ and it’s just getting started…
https://stockcharts.com/h-sc/ui?s=QQQ%3ASILJ&p=D&yr=0&mn=11&dy=0&id=p51100962826&a=1345035942
minute 40 begins the explanation of jab method for encoding for the snake venom…glta
Dave doesn’t sound that interested in these lower lows for Integra and MPM yet mentions GSV selling cheap for $230mil. The merged Integra will have 2x the oxides as GSV and 2.5 mil oz sulfides as optionality while trading at under $90mil. Factor in GSV’s Pinion with recoveries in the 50’s and its hard to ignore the disconnect.