BHP Joins Forces with Prospect Generator to Explore Mexican Copper Project

Source: Maurice Jackson for Streetwise Reports 05/16/2019

Dr. John-Mark Staude, president and CEO of Riverside Resources, sits down with Maurice Jackson of Proven and Probable to discuss his company’s just-announced exploration funding agreement with BHP.

Maurice Jackson: Joining us for a conversation is Dr. John-Mark Staude, the president and CEO of Riverside Resources, Where Knowledge is Golden.

Riverside Resources Inc. (RRI:TSX.V; RVSDF:OTCQB has some breaking news coming from its corporate offices in Vancouver that shareholders should note. In the last interview, Dr. Staude, you addressed the five C’s that will be catalysts in 2019 for Riverside, and one of them was copper, which will be germane for today’s discussion. Dr. Staude, you have some groundbreaking news. What would you like to tell shareholders?

Dr. Staude: Riverside is so excited! We’ve now completed an exploration funding agreement with BHP. This agreement is at least two years long, with funding of at least a million dollars a year, for grassroots exploration, with additional funding by BHP to develop porphyry copper in Sonora, Mexico. It’s exactly the type of business that we like to do, getting majors to fund the work, having the prospect generator model in action, and into a great commodity like copper. Fabulous news for Riverside. We’re right on track. 2019–2020, a great year ahead.

Maurice Jackson: This is fantastic news! Today’s press release is a true testament on the business and geological acumen of Riverside. I’m confident shareholders, as well as myself, are celebrating on the company’s monumental accomplishment. Let’s delve into the details of the agreement with BHP. BHP has a market cap close to $125 billion. Why did it commit on a two-year, $2 million agreement with Riverside?

Dr. Staude: I think the key thing is Riverside has the capacity, the expertise in Mexico to go and find growth projects. The world doesn’t have enough growth, good new exploration opportunities. And this way, we expose BHP to Mexico, where our knowledge, our team on the ground can be rapidly working in a turnkey process that is a win-win for Riverside and BHP. We’ve been in Mexico for a decade. We’ve been able to develop projects. So this is a perfect fit of our expertise with BHP’s capital and its knowledge and put it together to make the program successful.

Maurice Jackson: Dr. Staude, provide us with an overview of the program.

Dr. Staude: The program is three stages. 1) The first stage is generative. That’s where BHP puts up the money, and we go about identifying good projects. Two types, one that we acquire, the other is that we stake. 2) Then there’s an add-on capital that comes in that adds additional work, and we go to a defined project stage. That is a stage where there will be drilling and spending of up to $5 million, and BHP needs to spend $5 million. 3) After $5 million has been spent on any …read more

St. Barbara's Acquisition Offer for Atlantic Gold Highlights 'Valuation Gap'

Source: Streetwise Reports 05/16/2019

The valuation gap between Australian and Canadian producers, highlighted by a recent takeover offer, is reviewed in a BMO Capital Markets report.

In a May 15 research note, BMO Capital Markets analysts Brian Quast and Andrew Kaip wrote that St. Barbara Ltd.’s (SBM:ASX) recent offer to acquire Atlantic Gold Corp. (AGB:TSX.V) exemplifies that “the valuation gap between Australian and Canadian producers creates an environment ripe for consolidation.” He added that “we view the consolidation of Australian and Canadian midtier miners as being inevitable.”

The analysts pointed out that today’s valuations favor Australian gold producers, which are trading at a premium to Canadian producers on a price to net present value basis and a price to cash flow per share basis. As such, the Australian companies are nicely positioned to make accretive acquisitions of Canadian assets. Conversely, Canadian producers have been struggling recently.

A perfect example of this theme playing out, the analysts indicated, is St. Barbara’s bid on May 14 for Atlantic Gold at a 41% premium to that day’s closing price. “The deal values Atlantic Gold at 1.3x net present value 5% at spot, above peer valuations at 0.7x,” Quast wrote. The premium is higher than that in recent takeover transactions of junior gold producers, he added, due to Atlantic Gold’s Touquoy being a low cost, high margin gold mine with growth potential.

The BMO analysts gave a shortlist of companies that could seize on the current market opportunity. The Australian companies, Evolution Mining, Northern Star, Kirkland Lake and Saracen Mineral Holdings, could be potential acquirers.

Possible Canadian targets include New Gold, Pretium Resources, TMAC Resources and Wesdome Gold Mines.

“From our analysis, we see that, overall, Australian gold producers have several options to expand in Canada in transactions that would be accretive to shareholders on the basis of net asset value and/or cash flow,” the analysts concluded.

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Disclosure:

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Pretium Resources. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional, and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this …read more

Explorer Releases High-Grade Assays at Montana PGE Project

Source: Maurice Jackson for Streetwise Reports 05/15/2019

Michael Rowley, president and CEO of Group Ten Metals, speaks with Maurice Jackson of Proven and Probable about the results of recent drilling at the Stillwater West project that delivered Platreef-grade mineralization.

Maurice Jackson: Joining us today is Michael Rowley, president and CEO of Group Ten Metals Inc. (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE), which is known for platinum, palladium, nickel, copper and cobalt in the Stillwater district in Montana.

Reader should note, Group Ten Metals is on hot streak as far as quantity and quality news flow! The company continues to deliver exciting results and information from the target areas identified at the 25-km flagship Stillwater West Project. And what we are seeing is not just mineralization, but rather, high-grade mineralization. The team must be eagerly anticipating the upcoming exploration season. We just featured Group Ten Metals on our program on the 20th of April and we invite you visit that discussion on our website provenandprobable.com.

Mr. Rowley, sorry if I stole some of your thunder, but I’m quite impressed with the progress your team has and continues to make on the behalf of shareholders. The company released a press release on May 7 regarding high-grade mineralization results from the Iron Mountain target. Before you take us there, for first time listeners please introduce us to the Stillwater West Project and the opportunity it presents for shareholders.

Michael Rowley: Thank you, Maurice, glad to be back. The enthusiasm is appreciated, and we share it. We are indeed on a hot streak, and Stillwater West is driving that.

Group Ten is the one of two companies that are active in the Stillwater Complex in Montana. The other one is Sibanye-Stillwater, a company that was created when South African gold miner Sibanye bought Stillwater Mining in 2017 for $2.2 billion. That company operates three mines on one deposit—called the Johns-Manville or J-M Reef deposit—and it is the highest-grade PGE deposit in the world, and one of the largest, hosting 80 million ounces of platinum and palladium at over 16 grams per tonne grade. If you think about that for a minute, we get excited when gold deposits have 10 million ounces at a couple of grams per tonne. The J-M Reef deposit is eight times that size and also eight times that grade. And it is open for expansion. It is a truly fantastic deposit, and it speaks to the amount of metal that is in the layered magmatic system at Stillwater.

Group Ten has a very large land position that adjoins Sibanye-Stillwater across about 25 kilometers and covers the lower portion of the Stillwater Complex, and we also have claims above there in the layered geology.

In addition to the land position, we have also compiled a terrific database including about 12,000 meters of physical core, plus geochemical and geophysical surveys, and have attracted a world-class team that is familiar with …read more

Nevada Copper Moves into the Sweet Spot of Investing

Source: Bob Moriarty for Streetwise Reports 05/14/2019

Bob Moriarty of 321 Gold profiles a company with a Nevada project that is expected to begin production by the end of the year.

I’ve written about Nevada Copper Corp. (NCU:TSX; NEVDF:OTC) in the past. The world has only a ten-day supply of copper on hand and that all by itself should move the price of both copper and Nevada Copper higher. Alas, in the short term the price of copper has declined.

The company maintains that they remain on track to actual production in Q4 of 2019. A recent article in mining.com revealed a major step forward as they showed a $115 million line of credit from a German bank, a $40 million private placement and off-take agreements with two European metal companies for a working capital agreement worth an additional $35 million.

The sweet spot of investing is to buy into a company just as they ease into production. The sweetest spot in investing is when the commodity that company produces is also increasing in price. I won’t attempt to forecast any price for copper, I’m not that smart but clearly copper is cheap right now.

We are seeing the earth tremors suggesting a sea change for the stock market and for resource companies. Investors in the two flavor of the day investments, marijuana and Bitcon, are soon going to learn the perils of buying at market tops. Wise investors will be seeing safe haven in the unloved and cheap markets such as resources as $250 trillion worth of used toilet paper disappears into bitcon heaven.

Nevada Copper has a tiny market cap of about $262 million. With a change in the copper market and going into production investors will be looking for the sweet spot of investing and Nevada Copper will come into its own.

Nevada Copper is an advertiser and I own shares bought in the open market. Do your own due diligence.

Nevada Copper
NCU-T $0.395 (May 13, 2019)
NEVDF-OTC 662 million shares
Nevada Copper website.

Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Nevada Copper. My company has a financial relationship with the following companies mentioned in this article: Nevada Copper is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned …read more

Partnership in Mexico Passes Major Hurdle Toward Becoming World's Most Productive Silver Mine

Source: Streetwise Reports 05/14/2019

Investment professionals around the world are cheering the go-ahead decision for the Juanicipio silver and gold mine in the Fresnillo Silver Trend district in central Mexico.

In April, Fresnillo Plc (FRES:LSE) and MAG Silver Corp. (MAG:TSX; MAG:NYSE.MKT) jointly announced that both boards approved the Juanicipio project and construction work is expected to be completed in late 2020. A dozen investment firms that specialize in analyzing precious metal mining companies rated MAG Silver Corp as a Buy.

Fresnillo and MAG Silver are partnered in a joint venture called Minera Juanicipio. The average annual production at their Juanicipio project is calculated at 11.7 million ounces (Moz) silver and 43.5 Koz gold, with an initial life of mine of 12 years. The productive period could be extended since the metal veins are rich, prospecting reports reveal.

“We expect MAG Silver to be largely funded to reach production.” – Raymond James

Macquarie Research advised, “With Juanicipio now officially being constructed, we would be adding to or establishing a position in MAG Silver for exposure to a best-of-breed asset …read more

Why Is the CEO of Golden Triangle Junior Scottie Resources So Excited?

Source: Peter Epstein for Streetwise Reports 05/14/2019

Brad Rourke, CEO of Scottie Resources, speaks with Peter Epstein of Epstein Research about his company’s major land acquisition in British Columbia’s Golden Triangle.

Scottie Resources Corp. (SCOT:TSX.V) is a lesser known Golden Triangle (northern BC, Canada) gold junior, who’s ship may have just come in…. Typically, when the word, “blockbuster” is used, it refers to drill results. In this case I refer to Scottie’s recently announced option on a sizable (>1,500 hectares) piece of property (the Summit Lake claims) surrounding its existing 100%-owned Scottie Gold Mine property {see map below). Even before this announcement, Scottie seemed like a natural takeout target for Ascot Resources (TSX-V: AOT), [C$160 million market cap]. (Note: the company announced the intention to raise C$1.0 million in an equity capital raise on May 13th.)

Ascot acquired IDM Mining and its Red Mountain project in March, and the Silver Coin property from Jayden Resources and Mountain Boy Minerals late last year. Furthermore, Ascot just upsized a capital raise to $15 million. Subject to TSX approval, Scottie will own or control a contiguous land package [the Bow, Scottie Gold Mine, Summit Lake and Stock claims] totaling nearly 8,800 hectares = ~21,750 acres. Yet, that approximate 8,800-hectare position is less than half the company’s total of more than 18,500 hectares.

Scottie Resources has another 10,000 contiguous hectare block adjoining, directly west, of IDM’s (now Ascot’s) property. One need only glance at the map to see that the chances of Ascot wanting to take out Scottie have likely soared. Before picking up these new claims, management was excited about its 472 hectare Bow property, the subject of this April 26th press release. Below are some historical drill hole intercepts from the Bow property, which is contiguous with the Scottie Gold Mine property. Imagine if the company could find more intercepts like those on the newly expanded property that’s now roughly 18x the size of Bow.

This “blockbuster” land acquisition opens up much more than additional hectares; it enhances the probability of putting the project into production on a standalone basis. It opens up the possibility that other mid-tier or major precious metals companies might want a piece of the action, regional players like Pretium, NovaGold, Seabridge, Imperial Metals and GT Gold Corp. Or companies outside the district that want an entry into the world-class Golden Triangle. Giants Teck Resources and Newmont Goldcorp Corp. already have direct interests in the district.

The following interview of Brad Rourke, president, director & CEO of Scottie Resources, was completed by text, email and phone in the week ended May 10th. As always, please see disclosures at the bottom of the page.

Peter Epstein: Please give readers the latest snapshot of Scottie Resources.

Brad Rourke: Our focus is on the past producing, high-grade Scottie Gold Mine property in Canada’s Golden Triangle, in northern British Columbia, which operated for nearly 4.5 years from 1981–1985. …read more

A Mind Reader's Guide to the Global Markets Galaxy: 'Surreal'

Source: Michael Ballanger for Streetwise Reports 05/13/2019

Sector expert Michael Ballanger muses on the effects of Twitter and political maneuvers on the markets, and specifically on a favorite gold explorer.

I have a confession to make: There are no free markets anymore; there are only interventions. Of course, I bow to Gold Anti-Trust Action Committee (GATA) cofounder Chris Powell, who coined that brilliant phrase a few years ago, because it was certainly my exposure to GATA in 2005 that changed my perception of the insidious role of the bullion banks in controlling price and sentiment.

That, in fact, has since been expanded to include not just gold and silver but LIBOR, Fed funds, corporate bonds and, finally, stocks. The delivery method used to be one of the hired mouthpieces on CNBC, like former reporters Charlie Gasparino or Maria Bartiromo, but both have moved on and were replaced not by reporters with a “scoop,” but rather central bank governors themselves. This has been the case for most of the pre- and post-global financial crisis period—up until the election of the current president, who has, along with several cabinet members such as Larry Kudlow and Smilin’ Stevie Mnuchin, discovered that sending out messages to either roil or calm markets is best carried out via Twitter.

The Donald derailed the current stock market “melt-up” on Sunday, May 5, when shortly after noon he sent out a tweet telling the world that the U.S.–China trade deal was “dead” and that he intended to raise tariffs to 25% on Friday, May 10 (which he did). The impact of the POTUS pronouncement was a $1.3 trillion haircut in global market values, and while it looked as though Friday was headed for a major crash I sent out a tweet asking: “Will Smilin’ Steve Mnuchin be the voice that turns the market?” This was in response to a CNBC headline plastered in super-large font across the TV screens where Mnuchin was quoted as saying that trade talks today were “constructive.” I also included the time that Mnuchin made the statement via Twitter, which was shortly after 11 a.m. and within one hour—one hour—of when the S&P tacked on 35 points, at which point I tweeted out this: “Now we have the (sickening) answer. . .”

Everywhere I turn, what was once the “invisible hand” of government intervention and interference has lost its cloaking device and is now in full view of any and all that were trained in the era of free markets. To use the term “surreal” is understatement of the highest order.

You have to understand that I am not a mind reader and I am certainly anything but a shaman (content to occupy all time and space through connectivity with my ancestors), but if I can smell collusion and interference and intervention and send out humorous tweets predicting a 55-point reversal in the S&P from 11 a.m. to 4 …read more

Silver Miner's 'Poor Q1/19 Results Drive Quick Management Action'

Source: Streetwise Reports 05/10/2019

The company’s first-quarter results and its reaction to them are outlined in a ROTH Capital Partners report.

In a May 6 research note, analyst Joe Reagor reported that ROTH Capital Partners lowered its target price on Endeavour Silver Corp. (EDR:TSX; EXK:NYSE; EJD:FSE) to US$2.90 per share from US$3 after adjusting its estimates following release of the company’s Q1/19 financial results. Endeavour’s current share price is about US$1.86.

The reduced target is due to the “poor Q1/19 financial performance” of the company, which impacted ROTH’s estimated valuation.

Reagor described Endeavour’s Q1/19 results as “mixed but skewed to the negative side.” Revenue was a beat at $29.1 million versus ROTH’s forecast of $28.4 million. However, earnings per share at $0.02 fell short of ROTH’s expectation of $0.10.

Unhappy with the weak first-quarter numbers, Endeavour’s management took “swift action,” Reagor noted, instituting measures to cut costs and improve performance. For one, the executives took a pay cut, and the Vancouver administrative staff members are working fewer hours. Also, the company assigned a new senior mine planning engineer who will review and revise mine plans to optimize operations. The company should significantly benefit from these changes, the analyst added.

ROTH maintained its Buy rating on Endeavour.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and …read more

In Q1/19, Royalty, Streaming Firm 'Delivers Even in a Poor Gold Market'

Source: Streetwise Reports 05/10/2019

A summary of the company’s first quarter results were provided in an iA Securities report.

In a May 9, research note, iA Securities analyst George Topping reported that with a strong Q1/19, Franco-Nevada Corp. (FNV:TSX; FNV:NYSE) “continues to demonstrate that it can deliver even in a poor gold market.”

Topping highlighted that the company achieved a beat during Q1/19 with respect to gold equivalent ounces (GEOs) added to its portfolio, EBITDA and cash flow per share (CFPS).

GEOs totaled 122,000 (122 Koz), exceeding iA’s forecast of 105 Koz and representing a 16% quarter-over-quarter (QOQ) increase. Outperformance in Latin America and Canada drove this result.

EBITDA came in at $141 million, compared to consensus’ estimate of $132 million. CFPS was $0.72 whereas consensus had projected $0.65 per share.

Q1/19 revenue for Franco-Nevada was $180 million, up 13% QOQ.

The recovery continues at Candelaria, and Cobre Panama is “coming online,” Topping noted. As Cobre Panama ramps up to steady state production over the next five years, GEOs for Franco-Nevada should grow by an average of 6–7% annually, iA Securities estimated.

In other news, Topping indicated, the company’s current chair, Pierre Lassonde, will leave the position as of Franco-Nevada’s 2020 annual general meeting.

IA Securities has a Buy rating and a CA$115 per share target price on Franco-Nevada, whose stock is currently trading at around CA$94.78 per share.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to …read more

Fund Manager Reveals His Top Ten Precious Metals List

Source: Streetwise Reports 05/09/2019

Ralph Aldis, portfolio manager at U.S. Global Investors, in this interview with Streetwise Reports, talks about movements in the gold market, why precious metals producers are doing better than explorers and developers, the funds that he manages and companies on his buy and sell list.

Streetwise Reports: Ralph, gold has been trading within a relatively narrow range around $1,300 over the last several months. What’s your outlook for the metal?

Ralph Aldis: Longer term, I do think we’re going to see a higher gold price. As for the near-term factors that have been a hindrance, many experts have a fairly positive view that this could be the right time for gold given current global geopolitical conditions where you don’t know what could happen, especially with the rise of Populist leaders.

But I think the current overshadowing factor on the gold price has been Venezuela. Recently there was a news story that Venezuela was said to have already sold $400 million in gold in spite of sanctions imposed. When that story hit the wires, there wasn’t really any real news out there on gold, but it would be my opinion that the news caused the gold price to drop around $11/oz. I believe it shows that, to some extent, sanctions are not working. Stories like Venezuela moving 8 tonnes of gold from its central bank around April 9-10, when gold was trading at $1,308, immediately preceded gold price declines over the next five days towards $1,275/oz. I don’t think it’ just a coincidence that gold has seen selling pressure around these headlines.

I believe that longer-term most investors are positive on gold, but it’s very clear we have had a distressed seller in the market. In fact we’ve had a couple in the past year; Turkey also comes to mind as a big seller. Against this backdrop we’ve seen five months of gold buying from China. Opportunistic buyers, when they see distressed sellers like Venezuela, are not going to rush to give sellers top dollar. So, when you see anything related to Venezuela and selling gold, it seems the bids just drop off. Obviously, Venezuela has been able to sell gold even though there have been sanctions. The U.S. has been trying to stop that, but Venezuela has been able to get gold into the market. I think that has been the biggest recent headwind for gold.

It’s instructive to remember that in 2018, Turkey was in a similar position. It had a big currency crisis, and it was selling down its gold reserves. Every week its gold reserves were dropping, using gold sales to defend the Turkish lira. Fast forward to 2019, Prime Minister Erdogan’s AKP party suffered defeats in the March 31 elections in big cities like Ankara and Istanbul, the biggest and richest city in the country. Erdogan is already calling for a new election because he didn’t get …read more

Pundits Weigh In on Bob Moriarty's 'Basic Investing in Resource Stocks'

Source: Streetwise Reports 05/08/2019

The consensus is Bob Moriarty’s book imparts valuable knowledge and can save investors from making costly mistakes.

Bob Moriarty, veteran resource investor and founder of 321 Gold and 321 Energy, is known for speaking his mind, something that he does on his websites and in his books.

His latest book, “Basic Investing in Resource Stocks: The Idiot’s Guide,” has made Amazon’s best seller list for commodities trading. In this book, Moriarty dispenses advice for people interested in investing in the resource sector, an area where he has over 50 years of experience.

Pundits have been reading and sharing their opinions on the book.

Fund manager Frank Holmes, CEO of U.S. Global Investors, notes that “perhaps what I admire most about Basic Investing is how refreshingly open it is. Bob doesn’t mince words, and he’s more than willing to share what he describes as his own past errors so that readers might learn from them. (To be perfectly honest, though, the longer anyone spends in the capital markets, the more likely it is that he or she will make a bad bet or 10. No one gets it right all of the time.)”

Holmes finds the book is “rich with practical advice on trading precious metals and resource stocks. Timing is key on both sides of the trade, and Bob uses a number of tools to help him make as large a profit as he can. Obviously you want to buy low and sell high, but sometimes that’s easier said than done.”

“Bob sees gold ‘as a solution to our continuing financial chaos. It worked for much of history and nothing says it won’t work again,'” Holmes stresses, quoting from the book:

“If you don’t own some gold (or silver or platinum or palladium or rhodium) that you can lay your hands on, you may regret it. Precious metals are the most secure insurance policy that you can buy to protect your financial house, even as it begins to burn down.”

“Hard truths, practical guidance, invaluable insight. It’s all there in Bob’s book, which, I should add, is also a delightful, often humorous read,” Holmes concludes.

Jayant Bhandari, an investor and the organizer of the annual Capitalism & Morality seminar, notes in the Canadian Mining Report that investors have lost a lot of money in the resource sector in the last few years. “This shouldn’t have been the case had investors paid attention to the work of Bob Moriarty. Exactly when the sector was losing money, Mr. Moriarty was investing in resource stocks—of the likes of Novo Resources and Irving Resources—that made him 10 to 20 times his investment. In some cases, more,” Bhandari writes.

He notes that Moriarty “provides a common-sense approach to investing in the resource sector.”

“Mr. Moriarty advises people to have the courage—once they have studied their homework properly—to have contrarian thinking, even if it goes completely against the emotions of the market,” Bhandari …read more

In Era of Geopolitical Chaos, Investors Should Look at This REE Company

Source: Rick Mills for Streetwise Reports 05/07/2019

Rick Mills of Ahead of the Herd explains why he believes investors should take a look at one company whose rare earth elements project could provide a secure supply of desperately needed metals and could have a “potential gross in-situ metal value of CA$7.6 billion.”

Because of the heightened global climate of aggression, chaos and fear the need for the protection of strong militaries is heightened.

Put simply, the world is a dangerous place:

Russian troops taking over Crimea and a Russian troop build up on the Russian-Ukrainian border

Russians in South America and Russian Arctic military build up

Terrorism

North Korea returning to the bad not-so-old days of flinging its nuclear capable missiles everywhere

Clashes between the U.S. and Chinese navies

Chinese aggression towards Taiwan

India and Pakistan long-simmering tensions

The possibility of another financial crisis (Brexit, unsustainable global debt)

Trade wars, cold wars and water wars

Nuclear capable Iran and Saudi Arabia

The current U.S. administration’s non-traditional way of doing things is upsetting ‘normal’ world order

There is evidence of ever-increasing aggression and militarization among the three largest military powers in the world right now: the U.S., China and Russia.

All of this means the United States needs Security of Supply: the U.S. needs sources of critical metals that can decrease its dependence on hostile foreign powers like China and Russia, basket-case economies like Venezuela and Zimbabwe, and failing mining states like South Africa.

Here is a list of 23 minerals the U.S. Geological Survey identified in 2017 as being critical to U.S. national security and the economy. Rare earths are central to the whole spectrum of defense technologies that are vital to every military.

The U.S. is almost 100% dependent on China for supply of its rare earth oxides, metals, powders and alloys—without rare earths mined and processed in China, America would be unable to manufacture military hardware.

We’ve written about this before.

The $392-billion F-35 Lightning II Joint Strike Fighter program was close to being canceled about seven years ago but for intervention by the Pentagon to prevent further delays. Reuters reported in 2014 that the chief U.S. arms buyer allowed two F-35 suppliers, Northrop Grumman Corp and Honeywell, to use Chinese magnets for the plane’s radar system, landing gears and other hardware.

“The first assay results of the bulk sample program at DEFN’s Wicheeda Project have been released…they’re spectacular.” – Rick Mills, Ahead of the Herd

Through a program called the United Launch Alliance, U.S. rockets are powered by Russian engines. Our Cold War enemy for 30-odd years, which ironically started the space race with the 1957 launch of Sputnik, all use RD-180 engines made by NPO Energomash, a Russian state-owned company.

Fortunately, regaining control over the high technology sector and national defense is becoming “mission critical” for the U.S.

At Ahead of the Herd we’ve identified a project in central British Columbia, Canada, that has all the elements in place for a successful rare earth …read more