Sean Brodrick – Investing In The Commodity Megatrends In Gold, Copper, Oil, and Uranium Stocks
Sean Brodrick, Editor of Wealth Megatrends and contributing analyst to Weiss Ratings Daily, joins me today to review how he is investing in the commodity megatrends with resource stock allocations in the gold, copper, oil, uranium sectors. For each sector, we review the technical price action of the underlying commodities, the supply/demand fundamentals of those markets, and then drill down into the types of resource stocks that have Sean’s attention. We wrap up factoring in the macroeconomic data and the coming inflation readings, to assess the economic health and market expectations around future Fed rate cuts. Sean also shares more about his publication Resource Trader (more info the link down below).
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Click here to follow along with Sean’s work at Weiss Ratings Daily
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The price of Silver is three dollars an ounce higher in the orient. Silver is definitely going higher Andy Schectman. DT
Silver has been in beast mode the last few weeks and not only did it pierce through that $26-$26.50 zone, but then got a $27 handle and now it’s got a $28 handle. It got up to $28.43 in overseas trading last night, but still is at $28.28 at the time of this post.
Nice to see a little life back in silver and the silver stocks lately.
Commodities Rally Reflects a Better Economy, but Also Poses Inflation Risks
Climbing prices could set back the Fed’s plan to cut interest rates
Bob Henderson – Wall Street Journal – April 9, 2024
“A surge in prices for the raw materials that power manufacturing and transportation shows investors betting on a prolonged expansion—and a potential rebound in inflation.”
“An index of global commodities prices, the S&P GSCI, has advanced 11% this year, outpacing the S&P 500’s 9.2% climb. Copper and oil have gained more than 10% and 16%, respectively. Even gold is posting fresh records, rising 14% to a new high of $2,343.50 a troy ounce.”
The Fed is no longer in charge of interest rates, inflation is. The inflation genie is out of the bottle. DT😉
DT – Paul Volcker decimated the American heavy industry sector with 20% rates; casinos had no real problem though. This presidential election year will not likely bring similar.
Gold & Silver are consolidating sideways for the moment.
Larry Lepard: Gold and Silver Up and the Mining Stocks Will Do Even Better
Natural Resource Stocks – Apr 9, 2024
“In this extensive interview with Larry Lepard of Equity Management Associates and Andy, discuss the revolve around the recent end of the bank term funding program, its implications for the banking sector, and the broader economic landscape.”
“Larry elaborates on the challenges and opportunities within the metals market, especially focusing on precious metals and mining companies. He also touches upon the Federal Reserve’s strategies, inflation concerns, and the potential shift towards high inflation as an escape route from the current financial conundrums. Furthermore, Larry offers a deep dive into the investment avenues within the mining sector, highlighting the categories of companies investors can consider. The conversation also explores the impact of jurisdictional risks on mining investments, with Larry providing insights into preferred locations and some to be wary of. It culminates with Larry sharing details about his investment fund, its focus areas, and how interested investors can get involved.”
Larry Lepard is like the rest of us he wins some and loses others, I know he was heavily invested in Argonaut Gold. I wonder how that worked out for him. You must Do Your Own Due Diligence. DT
Didn’t Lepard do his DD on Argonaut?
As mentioned in my last 2 substack articles on growth oriented producers, I got positioned in Argonaut the end of last year, but then upped the stakes by 3x in late February after their waterfall decline. As a result, now post merger news with Alamos Gold, I’m up in the green on the trade, and picking up the new SpinCo with the Nevada and Mexican mines as a nice kicker.
One can’t paint all investors in any equity with the same brush. Like always it depends on where one gets positioned.
Granted, most longer-term Argonaut shareholders are going to remain underwater, even after the merger premium with Alamos is factored in: because the stock was in a 2 year decline, ever since the cost overruns at Magino were first daylighted.
That was a shame because it is easy to see why savvy investors like Larry Lepard were positioned in Argonaut. If any investor really did their due diligence on Magino, then they knew it was a Tier 1 asset in a Tier 1 jurisdiction, and that is precisely why Alamos Gold just scooped it up on the cheap to pair with their robust Island Gold Mine in Ontario, while Argonaut was distressed.
For anyone interested in the Argonaut / Alamos merger, I did a deep dive on this topic in a recent Substack article:
Special Alert: Opportunities With Growth-Oriented Gold Producers – Part 6
Excelsior Prosperity – 03/27/2024
https://excelsiorprosperity.substack.com/p/special-alert-opportunities-with
Zimbabwe is backing its currency with Gold. Good for them they have always had one the worst currencies in the World now it is threatening to become The Best. I wonder how that will change investments in their mining industry, I believe it will be positive. Zimbabwe can teach us an old trick that should be new again. DT 😉
Interesting! With next door neighbor South Africa the “S” in BRICS could there be more in the works?
Excelsior, what do you think about the rumors about WM being taken over by AEM?
Do they have any substance and/or do you even find it possible at all?
Hi TomasD. Nothing would surprise me at this point. Agnico Eagle took over Kirkland Lake, which had acquired the Detour Gold project, and Wallbridge has an amazing land package adjacent to it, with 4.5 million ounces of gold already defined, and likely double that that they’ve not had a chance to drill yet, so I could see Agnico Eagle viewing all of this with an “eagle eye” from above and staking their prey.
From timing perspective, the Wallbridge valuation has just been destroyed over the last few years, in concert with the bear market in PM equities, so this would be a good time for a major to strike before that valuation goes back up again. We’ve seen a number of other M&A deals lately for that same reason, so again it wouldn’t surprise me, but doesn’t necessarily mean it is imminent. People have been speculating on WM being taken over for years now, and all it has done is languish, despite doing some very impressive exploration work.
At this point the investor sentiment has turned negative towards WM, and their share count is blown out with a billion shares; but there is a new management team in place now and one that is more solid with more industry connections.
I literally was just emailing with the new management team of WM yesterday trying to get them on the show, but they are busy at the conference in Zurich Switzerland right now and we agreed on next month to do a good overview of the work strategy for this year. Providing they are still around we’ll have a Wallbridge update for folks here the 2nd week of May.
Thanks Ex!
I would really like to hear from the management and their plans going forward.
Many ppl in the space have pointed out the large share count as a negative factor, which it surely is. However it should be noted that the MC is ridiculously low with regards to the defined ounces they have in the ground, not even considering the ounces they may have in the great yet unexplored land mass they own.
A MC of 91M is nothing with those gold/nickel assets and there are a lot of companies that have a much greater MC with fewer ounces and smaller explorable land.
I recall Sprott saying in his friday recaps with Craig (-20??) that he would buy much more if he was allowed to, WM was almost a billion MC back then. It sure would be interesting if you could ask Craig (or the new management team) about Sprotts interest in the company, his position and what he thinks about the future. I recall he wasn’t to happy about Makuch being in the board back then.
Yeah, some really good points TomasD, with regards to the ridiculously low market cap that Wallbridge is getting for the millions of ounces of gold (and pounds of nickel) in the ground in such a prospective Detour-Fenelon Gold trend.
Absolutely, the market cap is far more important than the share count for sure, but many Canadian and even US investors still won’t touch companies with over a billion shares out (in contrast the Aussies have no problem with it, and that is far more common on ASX listed companies).
As for Sprott, he’s got a 16.3% stake in the company, but I’ve not seen him doing any buying on the SEDI report since 2021, so he’s just been holding what he’s got. I don’t think Craig or management would comment publicly on Eric’s opinion at present.
Personally, I see Tony Makuch as a net positive for Wallbridge, because he was the former boss of Kirkland Lake, and he and Eric made a lot of money together. Also, since Kirkland bought Detour Gold right next door, he’s probably got a very good handle on the specifics in that area.
Yeah, I’m working on getting the interview going with the new CEO Brian, but they don’t seem to have any urgency to get on the show and tell their story, despite repeated requests from other investors for them to come on or repeated requests from myself. For now we’ve got it set up for May 9th, so it will likely air that afternoon or the morning there after.
Thanks for the comments and feedback TomasD. Much appreciated!
https://tinyurl.com/2w2fhe7h
NatGas: Overview
Targets!
Minimal PM pull backs (23.6%-38.2% or less) on Dollar Rocket. Hold firm! (Buy?)
2nd Day out of the last 3 where Schwab listed Awale Resources having a value of .01 in only Customer Accounts. Is anyone else loaning them money either overnight or for a full day?