New Guests – Howard Klein & Matt Fernley, RK Equity – Insights Into Critical Minerals Markets: The Evolution of the Markets & Government policies
In this Daily Editorial from the KE Report, we welcome Howard Klein and Matt Fernley, partners at RK Equity, for an in-depth conversation about the rapidly shifting landscape of critical minerals. The discussion focuses on the strategic importance of various minerals, the influence of international policy, specifically from the U.S. and China, and the importance of technical processing in the valuation of equity.
Key Discussion Points:
- The Evolution of RK Equity: An overview of the firm’s 24-year history, starting with traditional commodities like gold and copper before becoming early leaders in the lithium and battery material sectors.
- Emerging Critical Minerals: Insights into why the market is expanding beyond lithium to include essential high-tech and defense metals such as antimony, rare earths, and high-purity phosphate.
- The High-Tech Supercycle: Exploration of how underinvestment in minor metals, combined with the rising demands of AI, data centers, and grid infrastructure, is fueling a potential long-term secular trend.
- Geopolitics and Policy Shifts: Analysis of how U.S. legislative actions like the Inflation Reduction Act (IRA) and shifting relations with China are fundamentally altering global mineral supply chains.
- Investment Strategy and Risk: Expert advice on evaluating mining stocks at various stages of development, with a focus on management quality, resource grade, and the complexities of mineral processing.
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Investment Disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
My stance remains the opposite. The crazier scenario would be a 12-18 month consolidation.
Right now, silver is going higher…
https://schrts.co/fPzmjMqK
I generally agree. I mentioned that a number of months ago. One would ask what would be the driver since inflation is an ongoing problem. I believe it could be the treasury bond market which technically at this time is predicting a second leg down in the next 4 months.
Made a few buys of Galantas Gold back in January right before the “halt”. All the shares were in my IBKR account and since then, IBKR would show a daily gain of 2 or 3 cents everyday at open and carry the gain all day to close. Despite the Halt, my “customer account” would show a daily gain which had to be subtracted mentally everyday. My guess that it was to somehow adjust overnight cash flow, but they would not comment on how many places they were doing this.
After about 4 months of “halt”, I was out of town and came back to find the halt lifted and my account up 96% or so.
So… check out Galantas if interested in a reported multi-million gold deposit.
Strange to see some promising stocks from the past selling for peanuts today, one that comes to mind is Lion one Metals Ltd. V-LIO. They are in gold production in Fiji, today selling for 13.5 cents CDN. In the past I might have picked up some shares but these days I’m waiting, not interested in pennies. DT
Look after the pennies and the dollars will follow
I owned lion one several times. There was a lot of hope for them at one time and they were in an area that had some successful mines. Drill results got high grades but short widths. Bob Moriarty was supportive at one time. They still may have a chance but it has been years since I looked into them.
I think conventional TA calls for silver to consolidate in a range for another 12-18 months. It’s quite possible we make higher lows all during that time, in an ever tightening range, with a upwardly biased trend. If this is in the cards, I would expect silver to tag its 50 week EMA before the next breakout leg higher begins. It could be quite a boring churn.
The crazier scenario would be the next true leg up begins this summer, by June or July. I don’t give this as much weight though, due primarily to the enormous over head resistance that is now in play. (I would think that will take a good 1-1.5 years to chew through, but you never know)