• Positive Drilling and Cash Flow at Favorite Companies

    Positive Drilling and Cash Flow at Favorite Companies

    Source: Adrian Day for Streetwise Reports 08/17/2017 Money manager Adrian Day discusses new developments at three of the miners in his portfolio.Almadex Minerals Ltd. (AMZ, Toronto, 1.20) on Tuesday reported probably the best hole yet in the drilling on its El Cobre project, with 534.9 metres grading 0.9 g/t gold and 0.3% copper. This was in the Norte zone where most of the earlier drilling had been focused, and follows a series of results that lacked the very high grades that had been seen earlier, leading some to conclude the zone appeared to be weakening. A high-grade core seems to be taking shape and the zone remains open at depth and horizontally. We need more ounces before we can call this a mine, but there is progress. A second target, Encinal, saw drilling recently conclude and assays are awaited. Drilling has now started at the prospective Raya Tembrillo zone; some think this is the best target on the large property. Until yesterday's news, Almadex had traded down on a lack of excitement in recent results as well as a soft junior market, but it moved from $1.00 last week to as high as $1.27 before settling back today. We like Almadex as a well-funded, technically strong exploration company, but wouldn't chase the price; buy on weakness. Long-term strategy bears fruit Altius Minerals Corp. (ALS, Toronto, 11.35) is having a good year, with revenue up, at $55 million, that's 79% higher than the prior year. This is mostly due to improved base metals prices. Copper now represents about 40% of revenues, with coal down to 27% of revenues. Equally importantly, the project generator business is beginning to bear fruit, with 22 projects vended to third parties. One joint venture, with Midland in the James Bay area, reported a discovery of a new zinc-bearing belt last week, and the JV has increased its claims as a result. Today, they announced another discovery, of a nickel-copper-cobalt showing, and Midland—which is operating the program—announced a vice president of exploration specifically for this program, indicating its increased importance. The balance sheet remains strong, with another $25 million in debt reduction, from cash flow and the sale of some equities in junior companies. Right now, Altius has $35 million in cash, $64 million in public equities; and $80 million debt. Altius is a core holding for us, a great way to gain exposure to a broad range of resources as well as to some of the best management in the industry, which has shown itself to be astute at deploying capital at the right time and able to take advantage of the cycles inevitable in the resource sector. We would add to positions on any weakness (the stock has moved from $10.80 low a week ago). Trouble at t'mill Wheaton Precious Metals Corp. (WPM, NY, 18.88) reported broadly flat overall production, ...read more
  • A Midsummer Night's Dream: Buy Precious Metals

    A Midsummer Night's Dream: Buy Precious Metals

    Source: Michael J. Ballanger for Streetwise Reports 08/17/2017 Precious metals expert Michael Ballanger discusses the seasonality of gold and silver, and the metals' relationship with Bitcoin.Each year since 1987, I have always used the final two weeks of the month of August as a shopping period in a manner not unlike the “Back-to-School” kind only the wares I seek are junior precious metals stocks as opposed to school uniforms, pens, and books. It began after I had been speaking with one of the finest brokers I had ever had the opportunity to know, Edmonton's late George Milton, whose claim to fame was being the early financier for Bre-X (Not to worry, he and the bulk of his clients were long gone by the time the fraud was revealed). George would tell clients around mid-May to raise cash because after June 1, he would be AWOL. Because there were no cell phones, internet, text messaging or Twitter, that meant that George would be out-of-contact until mid-August and, true to form, on August 15th, he would arrive at the office, open his Rolodex, and begin to call clients. By the time mid-August arrived, the first shares he would buy were the ones he sold in mid-May and amazingly, 90% of those names had fallen 50% (or more) due to the illiquidity and disinterest so typical of the June-July period in the Canadian junior mining markets. He would spend the next two weeks accumulating his list and then watch as the mid-September reversal of fortune arrived with heightened liquidity and interest and prices paid for his late summer shopping spree would advance. Alas, here in 2017, some forty years after that fateful conversation and initiation of the “Midsummer Night's Dream” buying opportunity, gone are the days of “going AWOL” for an uninterrupted eight weeks of golf and cottaging free from the irritations of client phones calls. In this new era of instant contact and immediate accessibility, you are always available lest you become either unemployed, redundant, or both. Furthermore, the “edge” of being the only buyer in the last two weeks of August has disappeared with the arrival of buyers all day and night operating from the realm of a data byte or virtual reality network. In other words, machines don't take holidays so the advantage that once prevailed due to the absence of traders has been eliminated. Nevertheless, I have found over the years that the late August period remains an excellent seasonal entry point for gold and silver investments and as the chart above shows, the September-January period yields the best historical returns for gold and therefore it stands to reason that a basket of gold and silver miners, split judiciously between seniors and juniors makes a great deal of sense as well as a dollop of your favourite “explorco” just to add a little excitement to the mix. In fact, in big bull market ...read more
  • Is the Next Gold Mine in Bulgaria?

    Is the Next Gold Mine in Bulgaria?

    Source: Streetwise Reports 08/17/2017 While Bulgaria may not be the first country investors equate with gold mining, executives at one TSX Venture Exchange-listed company are sitting on pins and needles waiting for the drill results that could prove their high-grade thesis.Velocity Minerals Ltd. (VLC:TSX.V), one of the first movers for gold in Bulgaria, has entered into option agreements with Gorbuso-Kardzhali A.D., a private Bulgarian mining company, to earn 50% of the Ekuzya project and 70% of the Rozino project. Historical drilling on the Rozino project suggests the potential of high-grade gold mineralization. Velocity announced on Aug. 1 that it initiated phase 1 drilling at the Rozino project, which is located within the Tintyava prospecting and exploration license in southeast Bulgaria. The nine diamond drill holes are a part of a larger, 12,000-meter drill program of up to 65 holes. CEO Keith Henderson told Streetwise Reports, "We have rushed the first drill cores to the lab and are expecting to receive results imminently. This will be the first indication of whether our thesis for high-grade mineralization is correct." To recap a little of the history: According to the company, Rozino was first explored in the 1980s by Asenovgrad Geoengineering EAD, a Bulgarian state company that drilled 86 vertical diamond drill holes. "Available drill technology was limited to vertical drill holes, which in the context of steeply dipping zones of mineralization was not a suitable approach," the news release noted. The area was then explored in the early 2000s by Hereward Ventures Ltd. and Asia Gold Corp., drilling 55 holes. According to Velocity, "Diamond drilling was angled, but oriented to the northwest, parallel to the predominant outcropping structural trends and therefore less than optimal. In 2005-2006, Asia Gold carried out a structural review and identified a strong northwest control on mineralisation and completed 2 drill holes to test this new idea. Drill hole R-245 was drilled towards the northeast, perpendicular to the newly interpreted northwest control on mineralization, and intersected 68m @ 3.15 g/t gold, including 11.39m @ 8.09 g/t gold." According to the company, "Hole R-245 confirmed that mineralization exists between the drill fences and the potential for additional broad intersects of near surface, high grade mineralization located between the existing drill fences is considered to be good to excellent. Velocity's current drill program is testing this interpretation." Velocity's partner Gorbuso is the only company in Bulgaria that holds a cyanide operating permit, and according to the company, Velocity would have access to its processing plant if the project is developed. The Rozino project is located about 20 km from Ada Tepa, which Dundee Precious Metals in developing. Velocity is conducting soil and trench sampling at the Ekuzya project, and expects to begin drilling in early 2018. Velocity is helmed by an experienced team of mining professionals. CEO Keith Henderson has served in senior roles at Anglo American, Cardero Resource, Dorato Resources and Centenera Mining. ...read more
  • Six Precious Metal Explorers that May Hit It Big This Summer

    Six Precious Metal Explorers that May Hit It Big This Summer

    Source: Streetwise Reports 08/17/2017 Summer is the season for drilling, and with the uptick in the precious metals market since 2016, companies are finally able to have the budgets to properly explore their prospects, says Brien Lundin, editor of Gold Newsletter and organizer of the annual New Orleans Investment Conference. Positive results can mean a bump up in share prices, and Lundin discusses six companies that have been releasing good news this summer.The Gold Report: Gold has been trading between $1,200 and 1,300 for a while. What's your sense of where it is going in the near and middle term? Brien Lundin: There is this belief in the industry that summer is a down time for precious metals. I went back and analyzed every summer since 2000 to see how gold performed during those summers. It's somewhat arbitrary because you can pick your beginning and end points for the summer season. But using June 1 through Labor Day Weekend, early September, as a proxy for the summer, gold more often than not, and in fact in a majority of the cases, ended the summer higher than it began. Within that period, though, it was not uncommon for gold to experience a steep drop and then a recovery. Typically, that drop has occurred during the month of July. So, what we've seen so far this summer really conforms to the historical record. And, in fact, there's a good chance that gold will end up higher at the end of the summer if it continues the rally it's currently in. With that said, the metal has, in recent days, come back a little bit, thanks to an easing of tensions in the North Korea conflict. Still, I get the feeling that gold has some legs underneath it here and has a positive bias, in fact a bull market bias, wherein investors will continue to interpret new news as bullish for the metal. I think we're on a slow but steady uptrend going into the fall from this point. Therefore, it's a great opportunity for investors to use the next season's typical strength to their benefit. Find more information on the New Orleans Investment Conference October 25-28, 2017 here TGR: What the trend for mining companies in the summer? BL: The mining companies, in particular the junior explorers/developers, are typically working away during the summer. In the Northern Hemisphere, it's really the exploration season of the year. So a number of these junior companies are releasing news during the summer and actually enjoying increases in their share prices if they're releasing good news. And the good news there is that many of them are getting positive drill results this summer because they finally had the budgets to go out and ...read more
  • Bet on the Jockey, not the Horse

    Bet on the Jockey, not the Horse

    Source: Bob Moriarty for Streetwise Reports 08/15/2017 Bob Moriarty of 321 Gold explains why in some cases—and particularly in the case of this explorer—you don’t need to know all the details, you just need to know the geologist. I first wrote about Aurania Resources Ltd. (ARU:TSX.V) back in March. The shares were $1.25 then and are $2.36 now. Keith the Barron did a private placement four months ago. The shares come free trading in a week. It may be the last chance to jump on this wagon. Over the past sixteen years I have visited a lot of projects. And I've met a thousand or more geologists. Everyone has their own idea of whom the best are at anything but after having met most of the players in the industry, I'm convinced I know who are in the top five. In no particular order you would have Peter Megaw, who pretty much invented mining in Mexico. The mining industry began a slow death when the Mexican Revolution began around 1910. By 1939 socialism in the country had pretty much destroyed the mining industry as investment capital dried up. Dr. Megaw saw the potential in the country and spent 25 years educating himself on various deposits. When Mexico finally realized it needed investment capital from abroad, he founded and helped dozens of companies sink roots in Mexico. He's the brains behind MAG Silver Corp. (MAG:TSX; MAG:NYSE.MKT), Excellon Resources Inc. (EXN:TSX; EXLLF:OTCPK) and many others. When someone calls me and tells me he is on board, I know everything I need to know about the deposit. I don't have to know anything about the vehicle, all I need to know is who the jockey is. Quinton Hennigh is the same. He's the brains behind Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX). They look as if they have found one of the biggest gold deposits in Australia in history, in an area where gold has been mined for wall over 130 years. He recognized the potential for a massive discovery 20 years ago in Witwatersrand-age basins, and only lately has proved it. If Quinton Hennigh signs off on a project or a company, you need to know no more. If you ask anyone in the industry about who was behind the concept of mining massive but low-grade copper porphyries, the answer would be David Lowell. He has made more major discoveries all over the world than anyone I know, including Escondida, the largest copper mine in the world, and Pierina. David Lowell literally is Mr. Copper. David Lowell finds giant deposits. If he is riding, you need to belly up to the betting window. I haven't met every single geologist in the world so I won't list my five best. I have to keep at least one slot open, but certainly one of the best gold projects discovered in ...read more
  • China, Gold and the US Dollar

    China, Gold and the US Dollar

    Source: Clive Maund for Streetwise Reports 08/15/2017 Clive Maund analyzes where the price of gold will go when China backs the yuan with it.The Neocon–Zionist drive for world domination is set to be brought to a screeching halt by something as simple as gold. This article is not politically motivated—the writer has no political agenda or affiliation—and the motivation for producing it is to enable you to understand the pivotal role that gold will play in thwarting the Empire's imperialist ambitions, and how this means that the price of gold—and silver—will skyrocket, and sooner than many think possible. When you know that this is set to happen, and you understand the key reasons why, you will be able to position yourself to profit greatly from this profound and seismic global shift. First we will consider briefly the ambitions of the Empire and its current situation. Although transnational in scope, the Empire’s main geographical centers of power are the United States, Israel, whose power is out of all proportion to its size, and the old center of power Britain, which serves as the "Right Hand Man" or "Number One." The goals of the Zionist part of the Neocon–Zionist alliance are the creation of a greater Israel, to use their words "stretching from the Euphrates to the Nile," and in pursuit of this goal they have already destroyed a significant part of the Arab world employing a "scorched earth" policy utilizing the U.S. military, which they control, and which is designed to wreck the economies of neighboring Arab States, leading to their subjugation. Their ultimate prize is Iran—once they have overcome Iran, the hugely indulgent and self-important Arab Sheiks in Saudi will be unceremoniously kicked out of their palaces and probably left to the mercy of the mob. At this point most Arabs will be turned into an army of indentured servants who exist to serve their Masters in the Greater Israel—the only other choice they will have will be to flee to the emerging Caliphate in Europe, where Germans have already become second class citizens in their own country, since immigrants have more protection under law than the indigenous population. The ambitions of the Neocon element of the Neocon–Zionist alliance are much more succinctly stated as world domination, pure and simple—the control and exploitation of all the peoples of the world. The key question in all this is from what or where does the Neocon–Zionist alliance derive the power to pursue these goals, which they are getting ever closer to achieving? How does a country of just 300 million people (the U.S.) come to control most of the planet with a massive military machine and hundreds of military bases spread across the globe? How can it afford to do this? The answer is simple—it has turned the rest of the world into a sweatshop that produces unlimited goods and services for the Empire in exchange ...read more
  • Silver Producer Moves Newly Acquired Argentinean Projects Forward

    Silver Producer Moves Newly Acquired Argentinean Projects Forward

    Source: Streetwise Reports 08/15/2017 Andrew Kaip, an analyst with BMO Capital Markets, reviewed this senior mining company's Q2/17 financial highlights and project milestones. According to an Aug. 9 research report, Pan American Silver Corp. (PAAS:TSX; PAAS:NASDAQ) achieved an earnings per share beat in the second quarter. "Adjusted EPS of $0.18 was substantially higher than our forecast of $0.07 and consensus of $0.10 on the back of higher revenue and lower costs," Kaip wrote. The silver company's Q2/17 operating cash flow of $43M was in line with BMO's estimate of the same amount "as a result of negative working capital adjustments and deferred taxes," reported Kaip. Free cash flow of $1M, however, missed BMO's expectation of $3M. Pan American had $161M in cash as of June 30, 2017. During the quarter, Pan American produced 6.3 Moz silver and 38 Koz gold, both in line with estimates, Kaip said. "Revenue beat our estimates on higher-than-expected silver and copper sales," he added. Pan American reiterated production guidance and lowered its cash cost guidance to $5.50–6.50/oz from $6.45–7.45/oz "as a result of solid cash performance in H1," wrote Kaip. As for capital expenditures, the report indicated the silver producer plans to spend $12.5M on development of Joaquin and COSE, its newly acquired projects in Argentina, and $5M on finishing the Dolores expansion. "Presently, the company is advancing two major expansions at Dolores and La Colorada, expected to grow its production profile in 2017," the analyst said. With respect to those efforts, Kaip's research also revealed the advancements Pan American made during Q2/17: 1. At Dolores, it finished "construction of the pulp agglomeration plant and commenced commissioning. Initial underground stope mining is expected to begin before year-end," Kaip noted. 2. At La Colorada, it reached production of 1,800 tpd in June, said Kaip, and "development of the underground mine is advancing ahead of plan." About BMO's investment thesis for Pan American, Kaip said, "PAAS remains a higher-quality name amongst silver miners, but we believe recent share performance incorporates the execution of its Mexican expansions and the steady three-year production outlook. Beyond these milestones, the company offers limited catalysts, as longer-dated projects require firmer timelines and deliverables to establish a meaningful pipeline." BMO Capital has a Market Perform rating and $17.50 price target on Pan American Silver. The company today is trading at around $15.96. Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page. Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or ...read more
  • 11 Opportunities in Gold, Uranium and Diamonds

    11 Opportunities in Gold, Uranium and Diamonds

    Source: Streetwise Reports 08/14/2017 Former journalist James Kwantes, editor of Resource Opportunities, provides a tour of promising junior mining opportunities, from the extremes of northern Canada to the tropics of French Guiana.The Gold Report: The U.S. stock market has been in a bull run for a number of years. What are your thoughts on the market and what it means for precious metals? James Kwantes: Since Donald Trump was elected president, but also for years before that, large-cap U.S. stocks have been a "can't miss" for investors, who have been rewarded for chasing returns. It seems very toppy to me, but that doesn't mean it couldn't go on for a while still. In 2000, in the big tech boom, the market caps of the two or three largest technology companies equaled the market cap of something like every mining company in the world. We're at that level again. We're starting to see weakness in the U.S. dollar, and that's positive for gold. These things are cyclical. Gold looks like it's ready for the next longer-term breakout and we're heading into a period of seasonal strength. We're starting to see signs of strength in the junior market as well. TGR: Would you talk about a couple of companies that you like in the precious metals area? JK: Let's start with the Yukon, where I recently did some site visits. When you fly into the Yukon, you see placer mining operations, where miners pull gold out of the rivers and the gravels. They look like big gravel pits from the air, and some of the operations are very large. Placer mining is a big industry in the Yukon—about 20 million ounces (20 Moz) of placer gold has been pulled out since the Klondike Gold Rush days in the late 1890s—but the Yukon has never really had a large bedrock gold mine. So the hard-rock source for all that gold is a kind of holy grail in the Klondike. Last year, Goldcorp Inc. (G:TSX; GG:NYSE) bought Kaminak Gold Corp. and its Coffee project for $520 million. That sparked another gold rush, an exploration rush, that is seeing many of the world's largest gold mining companies do joint venture deals with companies that have Yukon projects. TGR: What are some of the companies you are excited about in the Yukon? JK: There's an interesting company called Klondike Gold Corp. (KG:TSX.V). It owns a large land position around Dawson, the epicenter of the Klondike Gold Rush, that includes some of the most productive placer mining creeks where a lot of gold is still being pulled out. Klondike Gold owns the claims above many of the best creeks. Klondike is systematically exploring an area called Lone Star, which was the site of one of the only historical bedrock gold mines that produced high-grade gold. Klondike has hit about 2 kilometers (2 km) of gold mineralization along a structure that CEO Peter ...read more
  • Jack Chan's Weekly Precious Metals Update

    Jack Chan's Weekly Precious Metals Update

    Source: Jack Chan for Streetwise Reports 08/13/2017 Technical analyst Jack Chan charts the latest moves in the gold and silver markets.Our proprietary cycle indicator is up. The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term. The gold sector is on a short-term buy signal. Short-term signals can last for days and weeks, and are more suitable for traders. Speculation is rising from a multiyear low. Speculation is supportive for overall higher prices. Silver is on a long-term buy signal. SLV is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders. Speculation is rising from a new multiyear low. Speculation is supportive for overall higher prices. SummaryThe precious metals sector is on major buy signal. The cycle is up. COT data is supportive for overall higher prices. We are holding gold-related ETFs for long term gain. Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011. Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page. Disclosure: 1) Statements and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation or editing so the author could speak independently about the sector. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. 2) Jack Chan: We do not offer predictions or forecasts for the markets. What you see here is our simple trading model, which provides us the signals and set-ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion. We also provide coverage to the major indexes and oil sector. 3) This article does not constitute investment advice. Each ...read more
  • North Korea Showdown: Pivotal Turning Point

    North Korea Showdown: Pivotal Turning Point

    Source: Lior Gantz for Streetwise Reports 08/13/2017 The next two weeks could be a make-or-break period for President Trump, says Lior Gantz, founder of Wealth Research Group.We're witnessing a classic political attention diverting operation. Like many before him, President Trump is provoking a foreign affair crisis in order to take our minds off of the problematic U.S. domestic economic and political tensions and focus on matters the government can blame on others instead of themselves. As you know, Trump's administration and political capital are at stake in September as he pushes to pass a bill regarding the wall, the infrastructure plan, the budget, and the debt ceiling. These topics will play a major role in determining the fate of natural resources, commodities, safe havens and cryptocurrencies. The pressure is on as we approach a year in the President's term in office. Complete Rundown of Upcoming Events: 1. North Korea Conflict: The war of words between President Trump and North Korea's Kim Jong Un is not slowing down at all. Trump denied that his remarks—where he warned that North Korean threats would be responded with "fire and fury"—had gone too far. Instead, he commented that he may not have gone far enough—that's clear propaganda. Trump is a master negotiator, so we know this is part of an elaborate strategy, but Ray Dalio, the world's largest hedge fund manager, along with Dennis Gartman, one of the best commodity analysts ever, and even PIMCO, the bond investment conglomerate, and Jeff Gundlach, the bond god, have all increased gold allocation themselves and advised clients to do the same. Gold has closed the week at $1,289 with silver being the top-performing precious metal, up 5.18%. Courtesy: U.S. Global Investors You're going to love this: gold exploration budgets are finally on the rise. Wealth Research Group updated you just a few days ago saying that for gold stocks to finally kick into 6th gear, we need discoveries and takeovers—we're starting to see both. 2. Volatility is Back: It was no more than a week ago when Wealth Research Group alerted that the VIX is about to spike and that betting on rising volatility is a phenomenal short-term trade. Our call was dead-on. Courtesy: Stansberry Research September is historically the worst-performing month of the year for the U.S. stock market, so we could be in the midst of a correction already. Some 200 stocks in the S&P 500 had fallen 10%+, which means nearly half are in correction mentality. 3. Industrial Metals: China, as opposed to the United States, doesn't have to endure a long, drawn out political debate on things that matter—they simply execute. Their infrastructure plans are huge and have driven aluminum prices to over $2,000 per ton for the first time in three years. In fact, most metals are in an uptrend. Courtesy: U.S. Global Investors This is significant, and it means that ...read more