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Are juniors gold stocks presenting a good buying opportunity currently?

Cory
October 29, 2020
Comments (60)

Erik Wetterling, Found of The Hedgeless Horseman joins me to discuss junior gold stocks broadly as the majority have sold off from the highs back in August. The combination of new shares hitting the market and lack of assay results from the labs plus a generally distracted investor all contribute to the selloff over the past few months.

Click here to visit Erik’s site.

Exploration stocks Gold stocks
Discussion
60 Comments
    Matthew
    Oct 29, 2020 29:40 AM

    Yes, the juniors are presenting a good buying opportunity. But will there be a better opportunity soon? Maybe. And relative to gold, probably not.

    https://stockcharts.com/h-sc/ui?s=%24GDM&p=D&yr=1&mn=11&dy=0&id=p24000716874&a=630922644

    bonzo
    Oct 29, 2020 29:56 AM

    Today I finally bought shares in AUIAF and NFGFF which I’ve been eyeing a while now.
    Does anyone else here own them?

      Marty
      Oct 29, 2020 29:07 PM

      I own both, AUIAF entry@ 1.80 US, THEN AGAIN in Mar@ 1.22, 2100 shares, and NFGFF @1.66 – shares 700

    cfs
    Oct 29, 2020 29:28 AM

    I do and I know Eric Sprott does.

      bonzo
      Oct 29, 2020 29:38 AM

      And so does BM. I already had some NFGFF via my shares of Novo, but I have never owned Aurania till now. I like Keith Barron and they have over half a million acres and 51 good drill sites. Bound to find something…

    cfs
    Oct 29, 2020 29:31 AM

    Aurania just closed its financing raise today, I think.

    CFS
    Oct 29, 2020 29:37 AM

    2020-10-29 09:26 U:AUIAF News Release Aurania Resources Announces Closing of C$11.5m Offering
    Toronto, Ontario–(Newsfile Corp. – October 29, 2020) – Aurania Resources Ltd. (TSXV: ARU) (FSE: 20Q) (“Aurania” or the “Company”) announces that the Company has closed its previously announced overnight marketed public offering of units of the Company (the “Units”), including exercise in full of the over-allotment option (the “Offering”). A total of 2,679,500 Units were sold at a price of C$4.30 per Unit (the “Offering Price”) for gross proceeds of approximately C$11.5 million. Each Unit is comprised of one (1) common share in the capital of the Company (each, a “Common Share”) and one-half Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall entitle the holder to purchase one Common Share at C$5.50 at any time until October 29, 2022. The Offering was completed pursuant to an underwriting agreement dated October 1, 2020 among the Company and Cantor Fitzgerald Canada Corporation, as lead underwriter and sole bookrunner, and a syndicate of underwriters including Canaccord Genuity Corp., Echelon Wealth Partners Inc., Eight Capital, Haywood Securities Inc., and Raymond James Ltd (collectively, the “Underwriters”).

    In connection with the Offering, the Company has paid to the Underwriters a fee of C$690,312 and issued to the Underwriters 160,770 compensation warrants (“Compensation Warrants”). Each Compensation Warrant is exercisable into a Unit at the exercise price of $4.30 per Unit until October 29, 2022.

    Anticipated use of the proceeds of the Offering are for exploration expenditures at the Company’s Lost Cities – Cutucu Project in Ecuador, initial exploration in adjacent Peru and for working capital and general corporate purposes. As stated in its September 14, 2020 press release, the Company has commenced drilling on the Tsenken N2 copper-silver target and plans to continue its drill program in southeastern Ecuador throughout the coming months.

    OOTB Jerry
    Oct 29, 2020 29:46 AM

    CFS………..posted 321 article…..I though it was a good one .,,in the other sectionhttp://www.321gold.com/editorials/moriarty/moriarty102920.html

    OOTB Jerry
    Oct 29, 2020 29:47 AM

    CFS………..posted 321 article…..I thought it was a good one .,,in the other sectionhttp://www.321gold.com/editorials/moriarty/moriarty102920.html

      OOTB Jerry
      Oct 29, 2020 29:48 AM

      sorry for the double post, …..I tried to make typo correction during transfer….

    Matthew
    Oct 29, 2020 29:13 PM

    GDM at fork support and near Fibonacci fan support:
    https://stockcharts.com/h-sc/ui?s=%24GDM&p=D&yr=1&mn=0&dy=0&id=p52694372448&a=577064562

    Matthew
    Oct 29, 2020 29:42 PM

    GDX turned up at speed line and pivot supports:
    https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=0&mn=9&dy=0&id=p17972878612&a=832566945

    Matthew
    Oct 29, 2020 29:06 PM

    I increased my PAA stake by 55% near the lows today (a little luck doesn’t hurt)…
    https://stockcharts.com/h-sc/ui?s=PAA&p=D&yr=0&mn=7&dy=0&id=p52403674857&a=824765117

    Matthew
    Oct 29, 2020 29:20 PM

    KTN jumped 11.43% in the final hour on very good volume…
    60 minute chart:
    https://stockcharts.com/h-sc/ui?s=KTN.V&p=60&yr=0&mn=1&dy=0&id=p73224982800&a=833036739

    David
    Oct 29, 2020 29:08 PM

    Freegold : + 15%
    Sky Gold: + 14%
    Golden Goliath: + 11%
    Lion One: + 10%

    Matthew
    Oct 29, 2020 29:23 PM

    That’s funny, Sky Gold and Golden Goliath finished unchanged in Canada (TSX-V).

      David
      Oct 29, 2020 29:38 PM

      I used to notice differences in Ex’s daily performance and mine. I think he buys some of his through the Canadian exchanges. Made me start thinking that the algos may be different and then play catch up. With my alternating stocks day to day, it also made me wonder if they are running programs to the extent that markets are totally fake. Who knows. They don’t make sense so….

      David
      Oct 29, 2020 29:21 PM

      The Sky Gold “price” was correct for end of day but the 14% was wrong on my Schwab account. OTC Markets and a random reporting site showed the price of .105 was actually a 6-7% loss. That means there are errors in Schwab price tracking. I usually pick up errors if I trade a stock as I check the price on OTC Markets against Schwab. Yesterday Schwab showed Condor up 500% when it wasn’t up at all. That one was obvious. Clearly I can’t trust Schwab prices. Thanks Matthew for calling attention to the descrepancy.

        Matthew
        Oct 30, 2020 30:18 AM

        David, a friend of mine uses Schwab and has had the same problem. I don’t know why they can’t or won’t sort it out. Maybe too few of their clients trade such stocks. If so, that will change in the years ahead and it will probably mark the top in the miners when they finally fix the issue!

          David
          Oct 30, 2020 30:16 PM

          I think you are right that they are not used to having such a concentration of OTC stocks tied to canadian companies. Most are penny stocks by definition which they probably don’t like either because of the fraud. If the price of miners weren’t determined by a government sponsored phony paper market, many miners would gain more credibility and more managed money.

    Glenfidish
    Oct 29, 2020 29:44 PM

    Hi David,

    I’m not quite into analytics, but what my binoculars tell me is being in the cad and being in cad miners wins all day!

    Glenfidish
    Oct 29, 2020 29:49 PM

    I’m not sure for others but for me and my miners, I have been able to re-enter at much lower prices since June! That is a huge profit for me.. patience wins in the end. There’s a saying that i learned long ago. Piano Piano.. eventually you are rewarded.

    David
    Oct 29, 2020 29:32 PM

    Glen:
    Thanks. I was going to look at this issue before. Matthew and Ex mentioned Interactive Brokers as a possibility. I think there are going to be tax and fee differences that I need to consider. Schwab also has a problem with reporting any price info if either the US or Canada have a holiday that the other doesn’t. Even of the OTC is open and trading, Swab gives no price info but footnotes it as incomplete. You can still trade but you can’t get alerted if a stock is running up or down unless you go to another site. I have raised the issue several times with them but they will not acknowledge the problem.

    Chris
    Oct 30, 2020 30:18 AM

    Can anyone tell me what silver junior they are discussing around minute 9? I can’t understand what they’re saying? Thanks

    David
    Oct 30, 2020 30:17 AM

    Another day of the same. Some up and some down. Just traded places with those yesterday. What’s the excuse today…China and Russia destroyed by a nuclear war or is it that the Senate went on vacation. Probably one of those.

      OOTB Jerry
      Oct 30, 2020 30:32 AM

      Same old game till after Nov 2………should see some action….I would think…anything can happen at this juncture.

    Ebolan
    Oct 30, 2020 30:20 AM

    With my trading…I’ve become the headless horseman. 🙁

    OOTB Jerry
    Oct 30, 2020 30:30 AM

    Dang ………another Friday……….Fridays are good……gold up…. 🙂

      CEO of nuthin
      Oct 30, 2020 30:36 AM

      I don’t know if it’s just my perception or if it’s reality, but watching the sector for 18 years (mostly watching – very little doing) it seems that during a PM Sector bull market, Fridays are Fun but during a bear market, Fridays are Fugly.

    OOTB Jerry
    Oct 30, 2020 30:37 PM

    However, the gold bullion should still perform well regardless of which party takes control of the White House, given that historically, gold has rallied in the years following an election for both Democratic and Republican victories.