Standout Companies From The Yukon Site Visit
Byron King joins me to recap his recent site visit to the Yukon. He visited a number of different companies and shares some of the standouts.
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(AXU) (AXR) Alexco Resources Corporate Presentation – June 2018:
https://www.alexcoresource.com/site/assets/files/4146/2018-06-13-cp_axr.pdf
Invest #Yukon panel discussion at CMS 2018
The Northern Miner – May 25, 2018 #VIDEO
Panelists: Stephen Mills, Deputy Minister Energy Mines and Resources, Government of Yukon;
Graham Downs, President/CEO , $ATC ATAC Resources Ltd;
Clynton Nauman, President/CEO , $AXU $AXR Alexco Resource Corp.
Building out a World Class $Silver Asset – Alexco Resources $AXU $AXR
Cambridge House International – May 22, 2018
#CorporatePresentation #VIDEO #Yukon
$AXU $AXR Alexco Resource Corp – Clynton Nauman, President & CEO
April 18, 2018 – European Gold Forum – #CorporatePresentation #Video
#Silver #Developer and near-term #Producer #Yukon
https://s3-us-west-2.amazonaws.com/denvergold/videos/egf18/egf18_6.mp4
David Erfle’s Top Mining Picks
Jun 25, 2018 #VIDEO
David Erfle, likes Klondike Gold $KG, ATAC Resources $ATC, and Alexco Resources $AXU.
Speaking from the #Yukon Mining Investment Conference in Dawson City, Erfle tells Kitco News that companies operating in Yukon are “ready, willing, and able” to continue growing.
Every time I review materials about Alexco I get excited. 👍👍
Agreed. They are finishing their declines, and doing some infill drilling in the 3rd quarter, and will announce their production decision in the 4th quarter, but everything is pointing to a go, with commercial production to start in 2019…. (right in time for higher metals prices).
They’ll be the only primary Silver producer in Canada at this point, so that should demand a premium…. especially with some of the political changes in Mexico.
Ever Upward!
In addition, I’m pretty jazzed about Alexco’s neighbor’s over at (MMG) Metallic Minerals (formerly Monster Mining). With Greg Johnson at the helm, their discovery should be in high gear this year.
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Metallic Minerals (MMG) & Group Ten Metals (PGE) – PDAC 2018
AXINO GmbH – Mar 12, 2018 #VIDEO
“Greg Johnson was giving AXINO a summary about both companies, of what has been achieved, and about the next exploration steps.”
Yukon Silver | Metallic Minerals $MMG $MMNGF
motherlodetv – Feb 25, 2018 #VIDEO
“One quick minute with Metallic Minerals’ CEO Greg Johnson talking about Metallic’s silver exploration program at Keno Hill, Yukon”
(MMG) (MMNGF) Metallic Minerals – Corporate Presentation
https://www.metallic-minerals.com/site/assets/files/1917/2018-06-26_mmg_presentation_live.pdf
Wow! Interesting project. Sounds like it’s acarbon copy of Alexco at an earlier stage!
Speaking of Mexico are you planning to reduce your exposure in that jurisdiction?
Yes MMG is like an earlier stage AXU, and both companies are friendly towards one another. Greg Johnson used to be the CEO over at Wellgreen Platinum (now Nickel Creek) before Diane Garrett took over, but his expertise is in geology. He is also currently the boss over at Group Ten Metals (PGE).
One of the MMG strategies is to potentially process their ore at Alexco’s Bellekeno mill due to the proximity, or the other strategy is to grow their resources to the point of attracting a larger Mid-tier or Major to partner with and build their own mill & processing center.
Either way, very keen on their Keno Hill exploration program this year.
As for Mexico, I’m not sure what to do at this point, but I have a very hefty exposure to the Silver & Gold & Base Metals projects in Mexico in my portfolio. For now, I’m more interested in targeting the companies with the most growth potential, and hoping they don’t do anything stupid with nationalization of mines or business crushing taxes.
For now I’m a hold in Mexico and am bullish on the Silver sector over the next 1-2 years, so Mexico is still the place to be for the most part.
However, this just underscores how important it is to be diversified in jurisdictions as well. Besides my positions in Alexco & Metallic Minerals, I also have stock in Dolly Varden, Klondike Silver, and Brixton that are operating in Canada. In addition I have positions in Bayhorse & Aurcana for Silver in the USA, and speaking of (USAS) Americas Silver is diversified in Idaho outside of Mexico. As two outlying Silver jurisdictions I also hold Silvercorp who operates in China, and AbraPlata operating in Argentina.
The more I think about it, I’m fine with the Mexico exposure I have with First Majestic, Americas Silver, Endeavour Silver, Impact Silver, Excellon Resources, Avino Silver, Santacruz Silver, and Orex Minerals. They are worth the candle IMO.
Is Metalic a silver deposit?
Yes. Silver/Zinc/Lead with some Gold as well. Very similar geology to Alexco at Keno Hill.
METALLIC MINERALS DRILLS BONANZA GRADE OF 2,851 G/T SILVER EQUIVALENT AT CARIBOU TARGET ON THE KENO SILVER PROJECT IN THE YUKON TERRITORY
DECEMBER 13, 2017
METALLIC MINERALS ANNOUNCES SURFACE SAMPLES UP TO 12,000 G/T SILVER FROM KENO SUMMIT TARGETS ON KENO SILVER PROJECT IN THE YUKON
DECEMBER 4, 2017
Thanks Ex. Are you selling any of your Mexico exposure given the political risk?
see above.
Thanks. I might run and reallocate some of mine over time to other jurisdictions as I am pretty concentrated in Mexico and less so in U.S and Canada.
Never a bad idea to be diversified in jurisdiction, stage (explorer, developer, producer), and commodity (Gold, Silver, Zinc, Copper, Uranium, etc…)
Cheers!
Lithium’s Top Challenge Is Finding Funds, Not the Battery Metal
By David Stringer and Mariko Ishikawa – July 2, 2018
“Despite bullish forecasts for global demand — especially with accelerating production of electric vehicles — lithium may have a funding problem. Banks are wary, citing everything from the industry’s poor track record on delivering earlier projects to a lack of insight into a small, opaque market. Without more investment, supplies of the commodity could remain tight, sustaining a boom that already has seen prices triple since 2015.”
“Lithium companies will need to invest about $12 billion to increase output fivefold by 2025 and keep pace with the world’s growing appetite for batteries, according to Galaxy Resources Ltd., an Australian producer seeking to build further operations in Argentina and Canada. Developers say that, so far, projects aren’t getting financed fast enough to achieve that leap.”
“Battery producers and automakers “have absolutely no clue on how long it takes to be able to put a mining project into operation,” said Guy Bourassa, chief executive officer of Nemaska Lithium Inc., which spent about 18 months piecing together a complex C$1.1 billion ($830 million) funding program for a mine and processing plant in Quebec. “There will be a big problem — it’s going to be an impediment” to raising supply, he said.
An “inability to access traditional funds has delayed the development of the sector,” said Richard Seville, CEO of Brisbane-based Orocobre Ltd., which began lithium sales in 2015 from northern Argentina, and experienced difficulty boosting output. “These projects aren’t easy — so the banks just don’t want to go there.”
“But boosting supplies may not be easy. By 2020, it’s possible that only a third of planned new capacity will be available at the processing plants needed to convert mined raw materials into battery chemicals, Orocobre says. Lithium demand is also being underestimated, according to Pilbara Minerals Ltd., a producer starting a mine in Australia.”
Some banks are lending. Perth-based Galaxy last year secured a $40 million general purpose debt facility with BNP Paribas SA. BNP declined to comment on its stance on lithium projects. As new developments begin output, banks will be more willing to refinance loans, according to Azure’s Price. Altura, which expects to make its first shipment of lithium concentrate as early as this month, will seek to replace existing debt as soon as August, says Brown.”
“Still, electrifying the world’s vehicle fleet will require vast sums for new mines, and funding will remain a challenge for smaller companies, according to Nemaska’s Bourassa.”
I don’t know anything about Metallica.
Metallica:
HaHaHa!! Funny stuff!
Couldn’t resist.
Could be Metalic’s new mascot! All they need to do is add an “a” to their name.
New Gold bought Metallica 10 years ago Wednesday:
Time marches on 😉
Ex will get it.
For whom the bell tolls….
Interesting Citibank technical analysis of the dollar
The dollar, and therefore gold, could extend their respective moves. I like that gold hasn’t paused or bounced materially on its way down.
The Citibank chart over at King World News shows the history of double tops on the USD being catalyst for big moves down. It seems to me that USD is set to fall (perhaps over the Fourth of July holiday, but it might be falling already today. Time will tell. Just let me know when it is time to back up the truck.
Over at King World Newa. I don’t know how to copy the link on my iPhone
SLV:GLD finally filled the 6/6 gap (no, the last three sessions didn’t do it)…
Nice! I have an order in on Britton. Hopefully it gets filled before the train leaves the station.
I think there is a reason some of these gold equities haven’t moved down with the commodity price… a lot of these junior stocks are getting really close to their market cap = cash on hand. I think that we are to the point where these stocks become “stupid cheap” and you just have to bite the bullet and buy.
Great point about many of the equities trading down to near cash on hand or their book value. There are also many producers that have spent the last few years trimming the fat and they can actually operate at current metals prices, especially if they get a currency exchange upside like the Australian and Canadian miners.
What is really wild is that there are some companies with multiple deposits, or infrastructure in place, or mills/processing centers built, that are only getting value for their cash on hand or maybe one of their assets, and the rest are being completely ignored. Many of the advanced explorers and developers are starting to spin out other companies to try an capture some of that value.
For example Brixton is spinning out their Silver/Cobalt assets (that have prior producing mines & infrastructure in place) because they aren’t being properly valued along with their BC Golden Triangle Thorn project and Atlin Gold, and Montana Silver/Gold Hog Heaven project.
Orefinders, is a very interesting little Gold developer, that have done a interesting transactions to process their old ore at surface using toll mining, and are on track for smaller scale production, but have also decided to spin out their Cobalt/Nickel assets into a new company as they weren’t being valued at all.
Orefinders Signs Plan of Arrangement with Power Ore Inc., its Cobalt and Nickel Battery Metals Spin-off
Toronto, Ontario – April 23, 2018
Then there was the (MLN) Marlin Gold transaction where they spun out their royalty assets into (FISH) Sailfish Royalties, as they were not getting valued correctly inside of Marlin. However, now the streaming deal they had with (GRR) Golden Reign has caused Golden Reign [a developer] to takeover Marlin Gold, and as a consideration, throw off a few more royalties into FISH and to adjust the terms of their streaming deal. It is very complicated to figure out how to value these spin outs and mergers between the 3 companies, but we are seeing more deals like this.
GOLDEN REIGN AND MARLIN GOLD ENTER INTO MUTUAL EXTENSION OF NON-BINDING LETTER OF INTENT TO COMBINE BUSINESSES
June 18, 2018
“Golden Reign Resources Ltd. (TSX-V: GRR), Marlin Gold Mining Ltd. (TSX-V: MLN) and Sailfish Royalty Corp. (TSX-V: FISH) are pleased to announce that they have entered into an agreement to extend the termination date of the previously announced non-binding letter of intent regarding the business combination of Golden Reign’s wholly-owned San Albino-Murra Property in Nueva Segovia, Nicaragua and Marlin’s La Trinidad Mine in Sinaloa, Mexico.”
http://www.marlingold.com/News%20PDFs/2018/2018.06.18_NR.pdf
There was also the 3-way merger of assets from Richmont Mines (RIC) where they spun out some of their mines and production over to Monarques Gold (MQR) during the RIC merger with Alamos (AGI) because they were not being properly valued and would have received almost no value if Alamos had acquired their whole company. Now MQR has given those producing mines a second chance to get more properly valued and gives prior Richmont holders added upside.
Monarques Gold Announces the Closing of the Transaction to Acquire All the Mining Assets of Richmont Mines in the Province of Quebec
– October 2, 2017
Lastly, there have been tragic divestments of assets like the raid on Primero (P) where McEwen (MUX) picked up Black Fox for a song and a dance, where Argonaut Gold (AR) picked off their large Cerro del Gallo development asset, and of course First Majestic (AG) got the big score when they acquired them for the San Dimas mining complex.
We see that when all these assets are combined in a company, they were buried under the debt monster or negative newsflow of strikes and Mexican taxes, but then all 3 Mid-Tiers (MUX, AR, AG) can give those assets much more value as they bring those projects under their wing. However, it isn’t clear that the marketplace even understands still how valuable those Primero assets will be to each company, so there is still plenty of room for rerating.
Ex you are making my head spin!
Soros Sneaking Around to Meet with the President of Spain off the Official Agenda
Sources in Spain have confirmed that the new president, Pedro Sánchez, met with George Soros secretly last Wednesday afternoon in Moncloa. They met around 7 PM for about 1.5 hours. What is strange is that Soros had two other unidentified people with him and the meeting was NOT on the public schedule. Soros has been pushing his Open Society and people do not criticize him because he has too much money. They just smile and say, “You are right.” Then they hold out their hands.
As they say, if you want honesty, fairness, and a straight up deal where you get what you pay for without pretense, go to a brothel. If you want to really get screwed, go to politics where there is plenty of corruption, lies, back stabbing, and backroom deals off the books.
The Next Bull Market Move Interview – Live from London – Rick Rule, President and CEO of Sprott U.S. Holdings Inc. – July 2018
by @bullmarketmove on July 2, 2018
> “Let’s talk about being a contrarian. The word contrarian gets passed around a lot and it seems on paper something very easy to do. You just buy something that no one wants, you wait for other people to buy it, and you sell it at the top. Sounds easy. Is it?”
>> “(laughs) Very hard to do. I’ve been a self described contrarian for many, many years and I struggle with it probably on a daily basis. Most people want to be a contrarian when it’s popular, which is particularly difficult, of course. I don’t have that problem, but like everyone else, I’m motivated with the desire to deliver for my investors on a timely basis. And that makes momentum, which is really observing a self-fulfilling prophecy in the near term, very, very difficult to resist.”
Stewart Thomson:
http://www.321gold.com/editorials/thomson_s/thomson_s_070318.html
Silver: Is The Bottom In?
Jul. 3, 2018
“Many traders and investors would have sold once the white metal pierced through its moving averages, but because our drawdown hasn’t been as much, we held strong. The problem with selling into a steep sell-off is that it can be very difficult to pull the trigger on the long side once the trend changes. This is why the vast majority of traders lose money. The masses wait until the trend does a full 180 and then some. Here, though, is the problem with this.”
“A typical intermediate cycle in the precious metals sector has 2, if not 3, daily cycles. These daily cycles obviously have tops and bottoms. Sometimes these daily cycles also have “half-cycle lows,” which are more profit-taking events mid-cycle. Suffice to say, if silver were to print its intermediate cycle this week, we could easily have a half-cycle low a couple of weeks from now. The masses wait for a confirmed trend change, which means waiting too much time. The problem with waiting too long is that one could get caught in a half-cycle low, which causes the trader to sell once more.”
“In my opinion, one should be buying heavily into this present weakness. ”
Canadian dollar at resistance:
The latest downdraft filled the gap back in late June / Early July 2017. Are there other gaps from earlier that need filled that are “off the chart”?
I think we’ve seen the low but it’s a little early to be sure.
the intermediate cycle is almost guaranteed to have bottomed today, with gold making a swing low. So one would expect a 6-8 week rally at a minimum (even in a bear market).
The base of this rally is extremely “dirty” looking to me, similar to the low struck in July 2017. So whatever gains gets the gang hootin and hollerin here in the next month or two, I expect most if not all of those gains to be wiped out at the next IC low. If you are happy with a 30% rally while incurring so much risk, have at it. And that’s assuming you trade the cycle perfectly, which I am sure many here will claim to do.
I will begrudgingly acknowledge that there are positives on the AG and EXK daily charts. EXK is above the 144, 233 and 377 dma. with the 144 having positively crossed the 233 a while back. AG’s 144 and 233 dma are probably within a week or two of positively crossing. which has typically been a very good sign that a bull trend is in place.
My bigger concern is with the weekly charts though and specifically the 100 WMA for each.
Obrador the leftist (pinko for short) could turn Mexico into a version of Venezuela. Once people get used to the government taxing profitable sectors of their economy it becomes their entitlement. Very difficult to overturn and politicians always hand out more and more freebies to stay in office. The US is lucky they got Trump, but The Mexican drug lords will be looking around for new sources of revenue now that marijuana is going mainstream. Mining could become their pray. In Mexico most people have nothing so they will embrace socialism and soon they will have less than nothing. Investors must be prepared for this new geopolitical risk.
Thanks.
It would be great to hear about Klondike Gold.
Very big money behind them, with a mineralization theory that, if correct, could mean a huge deposit. They’re looking for the upstream/ uphill sources of the >20 million ounces of placer gold found in the Klondike gold fields over the last hundred years or so.
They’re supposed to start announcing some drilling results this month I think.