An Exclusive Company Introduction To Generation Mining
Kerry Knoll, Executive Chairman and Director of Generation Mining (TSX.V:GENM – OTCQB:GENMF) joins us to introduce the Company’s palladium-platinum-copper-gold Marathon Project in Northwestern Ontario. We start by reviewing the economics highlighted in the Feasibility Study released on March 4th. We also unpack the options available to secure the capex needed, as the Company moves towards a construction decision. Next we discuss the potential paths forward, based on how Sibanye decides to proceed with its option to back into a 51% stake in the project over the next 5 weeks. Lastly Kerry outlines how things are progressing with the 8,000 meters of drilling aimed to expand the resources, and the goals of this exploration program.
If you have any follow up questions for Kerry regarding Generation Mining please email us at Fleck@kereport.com or Shad@kereport.com.
In addition to the Palladium and Platinum, the project boosts a heft Copper exposure as well, which, at current price levels, could cover much of operating costs of the Marathon project, essentially giving plenty of revenue upside to the PGMs and Gold.
heft = hefty (as in, hefty Copper exposure…)
Speaking of Copper….
Filo Mining Reports 1,081m at 0.88% CuEq; including 352m at 1.16% CuEq at Filo del Sol
GENM is so undervalued….NPV at current metal prices is over $2B and the market cap is only about $170 million….
Great point Pete!
We are seeing a lot of those kinds of market dislocations in the development stage companies at this time. Lot’s of room for these kinds of stories to get re-rated higher over time when folks wake up to their intrinsic values.
I understand the focus of this site being small companies and appreciate the excitement of finding a big strike and enjoy the commentary here. However, I prefer to follow companies that are already producing and have cash coming in. An example is Yamana. Taylor Dart just wrote about AUY on SA and how they are increasing their Abitibi land holdings, producing more gold there and becoming more of a tier one company. AUY has a decent dividend and their options market is liquid, offering more possibilities for making money. That’s just more my style. Producers can make big strikes too.
Yes, agreed Terry. Personally, I have some of my larger weightings to the producing Gold, Silver, and Base Metals companies, but some of them are too large to want to come onto shows like this, as they are not as interested in retail investors and focus mainly on institutional investors or Hedge Funds. In a bull market though, many of the producers will have very nice outperformance to the metals, and even over some of the smaller juniors, depending on the company.
>> As for the companies that we have featured here on the KE Report:
One area we’ve worked all year on expanding into is into a few more of the smaller producers and near term producers.
In 2021 we have had Gold and Silver producers on the show like Caliber Resources, Northern Vertex, Golden Minerals, Excellon Resources, Impact Silver, and new producers like Pure Gold, Novo, Magna Gold, Mako Mining (just today in fact), in addition to companies that are just a few months from production like Minera Alamos (last week), Aurcana Silver (last week), Thor Explorations(last week) & Gold Mountain (last week).
For a long time the vast majority of the companies featured here were only the earlier stage exploration drill plays or development stage companies, and we still feature plenty of those and will continue to do. We are working on not only growing the production and near-term production stories that come onto the show, but also branching out into wider number of commodities like Copper, Nickel, Palladium/Platinum (like Generation Mining on this editorial), Uranium, Lithium, Zinc, etc…
In addition to featuring more companies, at more stages of mining (and more royalty companies), and across more commodities, we are also trying to feature other small cap stories like Oil companies, Food companies, Technology companies, and may even bring on a few Cannabis, Crypto/Fin Tech, or Biotech companies.
We are doing our very best to bring in new ideas for investors to review, trying to respond to all the different ideas people email or message us with, and there are only 2 of us. There is a very busy schedule behind the scenes with many calls and ideas we review every day and week, and not all of them make it onto the show for various reasons, just like not everyone we reach out to responds back or feels the show is the right fit.
Please keep the great ideas and suggestions coming in, and we really are doing our best to provide a balanced approach between generalist commentators, fund managers, newsletter writers, technical analysts, thought leaders in different sectors, along with up & coming successful retail investors. This is all in addition to the company segments, and it takes quite a bit of coordination and communication to make it all come together.
Ever Upward!
Ex, you and Cory are doing an excellent job and it’s important that you continue to expand out to other sectors since the PMs will eventually some day reach a quiescent period as they have in the past. Then investing in good stocks of companies of sectors about to rev up after it appears no one loves them will give Kereport added legitimacy.
Thanks Doc. I appreciate those comments and agree. We’ve had a few discussions about that already, that in a cyclical business, it’s good to be diversified to a degree.
That way, when one sector is correcting, then another is trending higher, and it attracts a wider range of investors, with a little of something for everybody. Cheers!
As gold price is falling, it’s a good time to load up on producers, or sell some puts and ease in that way.
I forgot to mention Sprott owns 8%+ of
STN:AX
Agreed Terry. If we do see a further corrective leg down this month, then there are a few producers I wouldn’t mind adding to, that I had trimmed the positions in previously.
Have you considered GDX options?
Yes BDC, I watch those everyday..GDX, SLV, SILJ, etc. but prefer the lower priced miners for some reasons. For example could have sold AUY $5 June24 put and collected 2%+ on your money, 9 days out. I like that.
Awhile back there was this: https://postimg.cc/t7TQgnZV
Speaking of copper, it’s about to take a beating—-the chart now shows pricing to be at risk. I sold a big holding of CPPMF a little while back. WRN will probably also pullback here but I’ll keep my position since they are also strong in gold. Some of the AG commodities also are pulling back. Gold in all likelihood has farther to fall but it will be nothing to worry about. June should show gold closing lower then May and July will be another important month.
When the news broke about Rio Tinto taking a strategic stake in Western Copper & Gold, I trimmed the position back some, and also trimmed back position sizing in a few other copper stocks a little like Kodiak, Dore, Sierra Metals etc… but some copper stocks I’ve added to recently like Excelsior Mining, Granite Creek, Triumph, US Gold, and Northwest Copper.
Set up last week. Missed yesterday: https://postimg.cc/3ybz7yZT
Recalibrated: https://postimg.cc/bDDWvz62
Possibly great buy point.
Ex: DC = location.
All in archive: https://postimg.cc/user/saturationedges
MaxSat(6) possible for Emerita (EMOTF) today.
Moved 2nd gray line: https://postimg.cc/9w7gtJT8
Hopefully it won’t matter!
It was very nice to have Generation Mining on for an introduction to the KE Report audience, with them being the most advanced Palladium development project in North America, at the Feasibility Study phase, and with a pathway to production projected to be in 2024, long before any other project can get up and into production based on the current lay of the land in the Palladium sector.