An inside look at Exeter Resource and the gold market
Over the weekend we received a number of comments on resources companies. One comment from Excelsior regarding Exeter Resource caught our eye and we sent it over to Wendell Zerb, CEO and President of Exeter Resource, to address. The comment is below the interview for your reference.
Wendell has been on the road for over a week so we get his take on the investor sentiment toward precious metals.
Click here to visit the Exeter Resource website. If you have any other questions for Wendell please comment below or email me directly at Fleck[at]kereport.com.
Click download link to listen on this device: Download Show
Here is the question from Excelsior…
Exeter Resource I see as an “Advanced Deposit” where they have done a great job of defining their resources, have made good progress permitting it, they have a solid PEA in place, and they have further de-risked the project with their efforts to drill out the water sources and secure the water rights. They are in need of higher precious metals prices and a larger company to buy them out to kick-start development.
I appreciate the topic being raised and to hear directly from the company and have all the respect in the world for the team at Exeter and enjoyed hearing Wendell’s response. This is one of the perks of tuning in the KER each day 🙂
It sounds like they are just waiting for the final water rights approval from the Chilean water authority, but don’t have a clear timeline, so they are exploring the other alternate sources for water, and this will allow them to finalize their Feasibility studies.
As for the comments about needing higher precious metals prices, I understand that there is the higher grade oxide zone near surface that allows them start economically at $1300 gold, and respect that answer……. However…… my opinion is shared by many others in the PM investing space that if they had better grade or economics at $1000-$1100 Gold then they would have been able to just pay for the alternate water source sooner and may not have embarked on such an aggressive water drilling campaign in the first place.
This is the reason, along with the water, that larger companies (Barrick), who are very much aware of their project, (and have been for some time) didn’t move in to scoop them up or JV the project with them yet earlier in this process.
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For example – I listened to Rick Rule discuss how he like Exeter over a year ago on a discussion about optionality, but that they needed higher metals prices before they’d be more attractive to the marketplace.
Here is a more recent note from a contributor at CEO referencing a BNN interview Rick Rule gave where he addressed Exeter:
—> James -“#BNNlive Rick Rule – Exeter Resources $XRC – Very large very low grade deposit in Chile. High Capex project. Rick really really likes as an optionality play. An out of the money call on gold. Kind of stock that could be a 20 bagger in the next cycle. Wants to see them cut back on spending and would possibly buy more. 1 from #index, 7 Mar 2016”
**Here is a comment from Eric Coffin from the Hard Rock Analyst (a great analyst, newsletter writer, and sponsor of the Metals Investor Forum)
— >nHRA-Coffin – “LOL. Yeah, I remember meeting the guys from Exeter back in the day. David and Yale were friends. Yale was showing Dave Caspiche and telling him how much the Bay Street guys loved it. Dave laughed and said “Christ Yale, that’s not a deposit, it’s a feaking soil anomaly!”
—- > dirkdiggler (a very sharp investor and contributor at CEOdotca) – “#XRC: The capex to put the entire resource into play is simply too outrageous. I believe they have a revised economic study that concentrates only on the high grade sweet spots……significantly lower capex / opex, and still a respectable resource, I believe. #index, 13 Oct 2015”
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Here are some other comments out in the marketplace from the last year or so from precious metals investors:
@tommy (the man behind CEO dot CA) – “$XRC tough big low grade gold project in Chile and substantial cash position with previously successful management .. Not sure what’s the latest there? ”
“Skin_inthegame – Sat down today with Exeter Resources. Their water discovery reduces costs per ounce by about $50. This is a substantial discovery, if permitted is worth more than their current market cap (they believe). With majors near them this makes them a takeout target, but who knows how long the permitting process will take? Could be 6 months or it could be 18, if at all. Crazy that the discovery of water may be more attractive than their 42 million oz AUEq deposit, to some. $xrc is in wait it out mode right now and are well funded ($24 million est.) to do so. This isn’t investment advice and please dyodd. Very high risk.
from #index, 5 Nov 2015″
— > anonymous Lol the more impactful number is the size of water found, rather than the size of resource. $xrc
—–> @Wannabeinvestor – ” I did play this name earlier in the spring. It’s a massive AuEq deposit, but up in the Andes. Think Brent Cook’s colleague Joe M said smth along the lines of ‘who’d be interested to acquire a hard-rock deposit up in the Andes?’. Looks like a great optionality play, but is this an M&A target? So I sold and bought $SSP and $VIT instead.”
—- > @barracuda i’m thinking that some type of bid is getting rumoured for $XRC or maybe just Rick Rule’s “optionality” coming into play
29 Jun, 2016,
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Again, I am a fan and have been a shareholder in the past with Exeter. It is very likely that after they release their feasibility study, things may pick up on what the strategy will be moving forward.
I’ll throw readers and Exeter a bone by posting a good Seeking Alpha editorial where this author offers his opinions on which companies have the bandwidth to acquire or partner with Exeter, and has a number of good things to say about their management team and outlook for the long haul:
*** I have to point out this passage though, where this analyst also states “the project will require higher gold prices to make it economical.” 🙂
Rising Gold Price Will Unleash Exeter Resource Corp.
Jul. 18, 2016
Another very similar gold miner stock is Exeter Resource Corp. (NYSEMKT:XRA). Exeter owns the Caspiche mine in Chile, which has a massive 40 million ounces of gold Measured & Indicated Mineral Resources. But the gold is in the form of lower-grade sulfide ore that is expensive to mine and process, so the project will require higher gold prices to make it economical. If and when it does become economical, though, 40 million ounces is a lot of gold that the mine can produce.
Exeter stock has done quite well this year too: it has gone from $0.321 on January 19 to $1.38 as I write on July 15, a 330% gain. But it has the potential to catch up to stocks like VGZ and THM, which gained over 600% — plus I expect all of these stocks to continue to rise, along with the gold miner sector in general, as the young gold bull market continues to grow.
http://seekingalpha.com/article/3989082-rising-gold-price-will-unleash-exeter-resource-corp
I just saw this on Seeking Alpha while I was in the Exeter filter:
Exeter Resources Is A Prime Takeover Target
SomaBull
Value, tech, gold & precious metals, gold
“Exeter Resources (XRA) owns the Caspiche project, which is massive gold-copper deposit located in Chile. It currently has a resource base of 43 million gold equivalent ounces. When Exeter released a Pre-Feasibility Study on Caspiche in 2012, it estimated the average annual production over the nineteen year mine life would be 696,000 ounces of gold, 244 million pounds of copper and 844,000 ounces of silver.
Those are huge production figures. So why does Exeter only have a market cap of $45 million? Because the price tag to build the project was equally as huge, coming in at $4.8 billion. That’s all investors care to remember about the company. The demand for large scale gold/copper projects has evaporated since gold and…”
Will Kinross’s Water Troubles In Chile Break Exeter Resources?
Apr. 12, 2016
http://seekingalpha.com/article/3964777-will-kinrosss-water-troubles-chile-break-exeter-resources
Thanks Cory for having them on. I posted both good endorsements and the criticisms of Exeter to be a fair in looking at the strengths and weaknesses.
I appreciate hearing from Wendell and the Exeter team and wish them all the success in the world!
I figured this was worth posting a little more from the editorial above since this whole editorial is dedicated to Exeter Resources:
$3 And Change Per Ounce Of Gold In The Ground
The metric for Exeter that really stands out for me is the company’s valuation per ounce of gold in the ground at its current market cap. At the present market value of about $125 million, Exeter is being valued right now at only $3.13 per ounce of gold in the ground. Yes, the decimal point is in the correct place, you are reading it right, that’s three dollars and change per ounce of gold in the ground.
Those kinds of valuations existed for a number of gold miners back in the depths of the bear market lows in 2015 or in January of this year, but for the most part those valuations have risen substantially by now. It is a rare opportunity to still be able to buy a gold miner with a large deposit at such a price.
Clearly the market does not yet believe gold prices will rise high enough to make Caspiche economical. But as the examples of Vista Gold and International Tower Hill Mines show, this bull market can change its mind and re-price stocks like Exeter in a hurry. I expect Exeter Resource Corp. to be the next gold stock to really pop in the next leg up of this bull market.
Issues And Risks
To be sure, as with any gold miner, there are issues and risks. With a number like 40 million ounces, one always wonders if there are really that many mineable ounces in the site. But the fact that 20 million of the ounces are in the more reliable Measured Mineral Resources category, rather than the Indicated category, provides some confidence that at least most of the stated resource is actually there. If it turns out that the mine produces 30 million ounces rather than 40 million, it is still a very lucrative project, given Exeter’s current extremely low valuation.
And of course Chile is a riskier jurisdiction than Canada, the U.S., or Australia. That may be one reason why VGZ and THM have popped more than Exeter to date. Still, major companies do a lot of gold and other mining in Chile, and the Caspiche project will be a very attractive target for a major when the gold price continues to rise.
A Seeking Alpha article in April by Hebba Investments pointed to the issue of access to water resources in the Atacama region of northern Chile where the Caspiche project is located. The author concluded, “We think that this issue is overblown and will have little effect on Exeter Resources’ potential.” The author pointed out that the high gold prices that will make Caspiche economical, will also give Exeter more options for access to water resources.
Rick Rule has mentioned Exeter several times as an example of an “optionality” play on the gold price, exactly the investment thesis I am making here. At the same time, on several occasions Rule has cautioned about the company’s high capital expense and lack of capital efficiency. To some extent, a high capital expense comes with the territory when a project requires higher gold prices to be economical. If the project had a lower capital expense, the stock would never be available for $3 per ounce of gold in the ground like it is now! At the same time, Exeter’s latest new corporate presentation, just produced this month, shows that the company is aware of the capex issue and is developing options to address it by mining a smaller, higher-grade portion of the deposit to begin with:
Bottom Line
The investment thesis for Exeter is very simple: If the gold price continues to rise, sooner or later the Caspiche project will become economic. When it does, its 40 million ounces of gold in the ground will be re-priced very many times higher than the current $3.13 per ounce valuation. As soon as an economic project is in sight, one of the major gold miners will eagerly buy out this company at a substantial premium. Even a relatively modest value of $30 per ounce of gold in the ground would produce huge gains for this stock.
Many of the concerns and risks that the project may have, Exeter may not have to deal with. A major will take it off their hands for a nice price, and they will deal with the issues later. In the meantime, current investors can make very large outsized gains between now and the time of the buyout by a major gold miner.”
http://seekingalpha.com/article/3989082-rising-gold-price-will-unleash-exeter-resource-corp
It is clear the marketplace (wrong or right) at least has the IMPRESSION that higher metals prices are needed to make the Caspiche project viable.
If they disagree as a company, then that is where they need to work on changing this perception in the marketplace.
Cheers!
I wanted to add that it was very encouraging to hear Wendell cover the strategy they have to go after the starter pit in the oxide zone and heap leach process it and then take the pit down lower into the high grade core.
They have had a good amount of time to figure out the best strategy and options available, so I have all the confidence that they’ll find a way to make it success for all stakeholders.
Ever Upward!
Exeter Resource Corporation – Precious Metals Summit – Beaver Creek 2016
Wendell Zerb, President & CEO
(TSX: XRC)
Eric Coffin is a very interesting man is all I can say.
He is. I have a great deal of respect for Eric, and his recommendations have made me a great deal of money over the years. His Metals Investor Forum with Brent Cook, Joe Mazumdar, Gwen Preston, Scott Gibson, and Brien Lundin are a great source of information.
I think the comments above he posted from his late brother David are partially in jest, because “in general” the Caspiche project is considered HUGE but relatively lower grade in the marketplace. As he mentioned David and Yale were good friends, until David’s passing and there was mutual respect there.
Regardless, there are a range of comments in the marketplace, and while Rick Rule and Joe Mazumdar have been critical of aspects, they all recognize the world-class value of the project, the sheer size at 42+ Million ounces of Gold/Copper, and the fact that at one point it will be developed (likely by a Major like Barrick taking it over).
I remain a big fan Big Al.
EX…..Great job on probing the company.
Thanks OOTB….The Claw…..The BOOT….The Long…..From Moscow…
I like Exeter a great deal, and have been a shareholder in the past, and have a great deal of respect for their team. I also am sensitive to the fact that they are sponsors here on the KER as well, and the goal is to get the word out about their project.
Hopefully as other potential investors dig into their story a little closer, they’ll see the opportunity with Exeter as well.
However, just blowing sunshine up someone’s rear end isn’t as helpful as pointing out where the perceptions traps may be in the marketplace. Sometimes it is good to see how the marketplace is responding to a company, as people come at things from different angles, and may raise some valid points. Feedback can help a company know if only part of their message is getting out, or where they need to be more vocal.
This all just happened with Orezone with their resource estimates changing. Everyone and their grandmother came at them with criticism, they realized the marketplace completely over-reacted, and at that Beaver Creek Precious Metals Summit, they addressed all the concerns head-on, showed evidence of how things weren’t as bad as the perception, and I had a great deal of respect for their response to the investing marketplace.
That is why I like to throw different companies up on the chopping block on the blog once in a while to see the good, the bad, the ugly, the undervalued, the misconceptions, the hidden gotchas or the hidden opportunity.
Lately when LPG has dug into some of the companies I’ve posted on it has been a real education for me as he is much more brilliant that I’ll ever be at tearing into a company’s financials. Sometimes it can be a bummer if someone digs up an issue and calls your baby ugly, but it can be very helpful as well.
In contrast to that, there are also times where people knock a company, management team, country, or asset class, without a good grasp on the situation and can become clear that they don’t truly understand the lay of the land. In situations like that it presents a teachable moment to anyone reading or listening that may have incorrectly made the same erroneous assumptions.
It’s fun analyzing where the unseen potential is, looking for flies in the ointment, and shucking through the investing bucket of oysters looking for the few pearls.
Hello Capitan Shad,
A few things, quickly.
1) Quote: “Lately when LPG has dug into some of the companies I’ve posted on”
-> Sometimes I had to dig after you mentioned a company, sometimes I had already looked at a company 😉
2) I don’t consider myself as “tearing into a company’s financials”…but I do pay strict attention to financials indeed (A-L-W-A-Y-S)
3) I don’t listen too much to sexy press releases. (I like to say: “we’re dealing with numbers, we’re not dealing with poetry”) 😉 so financials help to remove some of the press releases noise/”we are a wonderful companyl” sometimes.
4) I look at financials with a few objectives in mind, chiefly:
(a) FILTERING: finding red flags which enable me to strike out a company right away
(b) VISUALIZING FUTURE CAPITAL STRUCTURE: trying to figure out what the future can be based on the current capital structure, the current operations, and what they might be in the future.
To put it simply, I try to mentally visualize what the financials might look like in a few years, based on their current status and various possibilities/outcomes for the future of the company.
This is critical for me in trying to assess how much I think a company can be “worth” for me in a few quarters or few years down the line.
–> So what I perform is pretty simple in essence.
Best as always,
LPG
Thanks LPG – A few quick things back.
1) Quote: “BTW, you didn’t tell us: “where TF do you find/do you hear all these companies ???” – LPG
-> I got the impression there they you hadn’t looked at those companies 😉
2) When I say “tearing into financials,” it wasn’t a criticism, it was a complement.
I could have said dissecting the financials, or pouring over the financial. Just saying “reviewing financials” sounds boring. It is a good idea to (A-L-W-A-Y-S) pay strict attention to the financials of course. Agreed.
3) Quote: “I don’t listen too much to sexy press releases. (I like to say: “we’re dealing with numbers, we’re not dealing with poetry”), so financials help to remove some of the press releases noise/”we are a wonderful company” – LPG
-> I agree that is about numbers not poetry, but I honestly can’t remember one press release saying “we’re a wonderful company.” I watch 6 different news sited for press releases, and skim over 100’s per week, but I may have missed that one 😮
-> What I do find by reading press releases are some of those companies you’ve never heard about, or updates on developments, or key drilling intercepts (I am much more interested in their NUMBERS on drilling, how many holes, over what distance, and what percentage per ton). Those are very important numbers, that can often change a company overnight (think Nexgen energy for Uranium when they drilled those bonanza grade intercepts and launched their stock up multiple-fold.) You don’t typically find that info of you are only digging through book value, enterprise value, etc…. or when it shows up on reports like those, it is old news.
The other advantage to reviewing press releases is to stay on the leading edge of Mergers & Acquisitions so one can react quickly to the news (and keep track of the arbitrage trades that I’ve made a small fortune with the last few years and most were oblivious to – like the points that Jayant Bhandari and Gwen Preston have mentioned a few times).
Often times in press releases companies are changing guidance for better or for worse and this gives investors that follow them a distinct advantage over investors that only pull quarterly reports or annual filings on Sedar. I’d rather get the jump on the rest of the analyst community, and already be in position when they finally catch up to a substantive change in a company 1-2 months later 🙂
The development updates in a press releases can also offer many clues as to stalls/problems with a project, or unnoticed and unseen potential with a project. If you aren’t following the releases then it can catch investors by surprise. (Think Rubicon)
Investors that only look at technicals or only review financials miss these things until later in the cycle with that company, and thus they miss out on gains or experience gains accordingly. I prefer being proactive and making decisions on the info in real time, instead of when it becomes more obvious. Some investor like Brent Cook, like to make sure they have the proof of concept first before then step in, but then they’ve often missed some of the easy money and intial explosive gains, but it is less risky. To each their own, it depends on risk tolerance.
4) I completely agree 100% with you comments in #4 and that what you perform is “simple in essence” but it isn’t easy, and it is specialized knowledge that most don’t have so it is valuable.
Best to you as well amigo.
Capitan Shad
Since I know you have already followed Newmarket Gold in the past, here is a press release for you ya. (Don’t worry there is no poetry, but there are some good drill numbers to review). 😉
Newmarket Gold Reports Additional Drill Results From Lower Phoenix Gold System at Fosterville Gold Mine
Drill Results Gold Australia
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 20, 2016)
Well…. some may consider their drill results poetry (lol).
Capitan Shad,
Thanks re: NMI.
I receive their press releases in my inbox – which I check carefully before any market open. 😉
Best as always,
LPG
Good work sir. I just didn’t want you to wait until their quarterly report. Looking out for ya man. 🙂
Capitan Shad,
1) Sometimes I’ve already come across companies you mention. Most of the time, no. Hence my “where TF” question indeed. 😉
2)Re: ” “tearing into financials,” it wasn’t a criticism,”
I didn’t take it as a criticism, no worries.
3) Re: ” I honestly can’t remember one press release saying “we’re a wonderful company.” ”
–> Sometimes, it’s not “we’re a wonderful company” that is mentioned per say, but it’s about the way things are presented in the press release OR things that are omitted.
Lately, for ex., I came across a company that I really wanted to like. But something bothered me… I knew something was missing. Then I realized I didn’t know the size of their property. In a few of corporate documents, there was no mention of the size of the property. I told myself: “it can’t be a mistake. It must be that the property is small”. I finally managed to find the figure in one of the documents… and the figure was, to my taste, too small. I passed on the investment.
Remember this say in the sector: “a gold mine is a whole on the ground w. a liar sitting on top.” (broadly).
The sector is hot. Anyone w. a few Oz on the ground will want to monetize that.
Also, I am under the impression that you don’t think I pay too much attention to press releases. Actually, I do: that’s why I read them before the market opens for all the companies for whom I received them directly.
What I mentioned is that:
” I don’t listen too much to SEXY press releases. […] so financials help to remove some of the press releases noise/”we are a wonderful company” ”
–> I guess it depends how you interpret “sexy”.
But to re-emphasize, I do do read them as part of my investment process.
4) It’s “simple” but not necessarily easy indeed. However, I note it’s not THAT difficult.
One doesn’t need to be a corporate finance genius to figure out a few things when pulling financials.
Anyone committed (capital wise) to this sector OR who has been committed to this sector for a few years and invest based on so-called “fundamentals” should be able to pull some quarterly financials and understand a few things here and there and look for red flags.
If one invests solely based on charts, then obviously, this is not necessary. As you know, fwiw, I personally do both (F.A and T.A).
Best,
LPG
Great thoughts LPG. I appreciate the follow up remarks and we’re definitely on the same page. Keep on keepin’ on.
Have a great week in the markets sir.
BTW – Monster Minerals just changed their name to Metallic Minerals Corp, and just added the prior CEO of Wellgreen Platinum as their new CEO & Chairman. Steps in the right direction!
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Metallic Minerals Corp. Appoints Greg Johnson as CEO and Chairman
September 19, 2016, Vancouver, B.C.,
Metallic Minerals Corp. (TSX-V: MMG; US OTC: MMNGF) (the “Company”) is pleased to announce the appointment of Greg Johnson, as Chief Executive Officer, Director and Chairman of the Board.
Mr. Johnson has over twenty-five years of experience in the mining industry with an exceptional track record in exploration, development and financing of large scale projects to create value for shareholders. Prior to joining Metallic Minerals, Mr. Johnson held the positions of President and CEO at Wellgreen Platinum and South American Silver, and was a co-founder and executive at NovaGold Resources. Mr. Johnson began his career with Placer Dome (now Barrick Gold), where he held various senior roles in domestic and international exploration. Mr. Johnson has developed broad experience in the capital markets and has been involved in raising over $650 million in project financing. For his role in the discovery and advancement of the 40-million-ounce Donlin Creek gold deposit in Alaska, Mr. Johnson was a co-recipient of the PDAC’s Thayer Lindsay International Discovery Award. In addition, Mr. Johnson has been recognized for his work in sustainable development and community engagement and was awarded the Robert E. Leckie Award by the Yukon Government for excellence in environmental stewardship.
Mr. Bill Harris, representing the Board of Directors, stated, “We are excited to welcome Mr. Greg Johnson to lead Metallic Minerals and to build a new management and technical team focused on realizing the value and potential of our exploration portfolio. Mr. Johnson has the demonstrated experience and vision that we believe will allow us to successfully advance our projects and maximize shareholder value going forward. Specifically Mr. Johnson brings years of experience in the north, especially the Yukon, Alaska and British Columbia. He was a key member of the management teams that led the discovery or expansion and advancement of a number of world-class precious and base metal deposits in the region including the Wellgreen PGM-nickel, Galore Creek copper-gold-silver and Donlin gold projects.”
speaking of Wellgreen Platinum…..
Wellgreen Platinum Ltd. – Precious Metals Summit – Beaver Creek 2016
Diane Garrett, President & CEO
(TSX: WG)
Always a ” teachable moment” around here 🙂
+1
Absolutely – thanks., A
Always glad to share ideas with the good folks here at KER.
Have a prosperous day Archdeacon (!) Andrew.
Osisko Mining drills 3.1 m of 391 g/t Au at Windfall
2016-09-19 09:10 ET – News Release
Mr. John Burzynski reports
OSISKO INTERSECTS 391 G/T AU OVER 3.1 METRES AT WINDFALL
Osisko Mining Inc. has released new results from the continuing drill program at its 100-per-cent-owned Windfall Lake gold project located in Urban township, Quebec. The current drill program is being expanded to 150,000 metres and combines definition drilling above the Red Dog intrusion, expansion drilling above and below Red Dog and exploration drilling on the greater deposit and overall property area. Six drills are currently on-site, and an additional four drills will be added to the program in the coming months. A total of five new drill holes is reported in this release and is presented in greater detail in the associated table.
Significant new results include: 391 grams per tonne gold over 3.1 metres (uncut) in DDH OSK-W-16-728 (14.7 g/t Au over 3.1 metres cut); 15.9 g/t Au over 8.9 metres in DDH OSK-W-16-706-W1; 10.6 g/t Au over 10.9 metres in DDH OSK-W-16-706-W1; and 5.75 g/t Au over 16.5 metres in DDH OSK-W-16-706-W1.
In case you missed this Mr. Moriarty:
http://ronpaulinstitute.org/archives/featured-articles/2016/september/19/why-are-we-sending-38-billion-to-rich-and-powerful-israel/
Like Hillary, Trump would be baffled by such common sense.
Evans-Pritchard on China:
http://www.telegraph.co.uk/business/2016/09/18/bis-flashes-red-alert-for-a-banking-crisis-in-china/
Riverside Resources Samples Up to 1.47% Copper at Thor Porphyry Copper Project, Sonora, Mexico; Begins Next Stage of Exploration
Copper Mexico
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 20, 2016)
Royal Gold Increases Royalty Interests at Cortez Crossroads
DENVER–(BUSINESS WIRE)–
“Royal Gold, Inc. (NASDAQ: RGLD) (“Royal Gold” or the has agreed to acquire a 3.75% Net Value Royalty (“NVR”) covering a significant area of Barrick Gold Corporation’s Cortez gold mine, including the Crossroads deposit (“Crossroads”) from a private party seller. The Company will pay consideration of $70 million to the seller…”
Seabridge Gold Announces Updated Preliminary Feasibility Study Completed for KSM Project
Gold Reserves & Resources British Columbia PEAs & Feasibility Studies
TORONTO, Sept. 19, 2016
Newmont’s aggressive expansion plans
Frik Els | about 5 hours ago
Mexus Gold US (MXSG)FORM 10-K/A | Amended Annual Report
Sep 19 2016
http://seekingalpha.com/filing/3228172?uprof=45&utoken=45367700671014d860a163e327c403c5
Here’s what 50 million extra tonnes of iron ore will do to prices
Cecilia Jamasmie | about 2 hours ago
http://www.mining.com/heres-50-million-extra-tonnes-iron-ore-will-prices/
Five Years of Deficits Will Keep Zinc Price on the Boil
Frik Els | about 4 hours ago
http://www.mining.com/five-years-deficits-will-keep-zinc-price-boil/
Bulls are back at Beaver Creek
Richard Roberts at Beaver Creek – September 15, 2016
“The drought, or “nuclear winter”, had well and truly lifted at the 6th annual Beaver Creek Precious Metals Summit this week as 750 delegates and 130 companies descended (or more accurately, ascended) with renewed verve on the event in Colorado skiing country.”
Cost-conscious Major Miners Look to Agility of Junior Explorers
COMMODITIES | Tue Sep 20, 2016
http://www.reuters.com/article/us-mining-exploration-juniors-idUSKCN11Q17A
Looking at the Volatile Relationship Between Gold and Gold Miners
Here is why investors can expect gold mining share prices to make a comeback.
Kim Iskyan Kim Iskyan Follow Sep 20, 2016
Platinum Group Metals – Maseve Mine (Update): The Company Accessed Mining Block 11 In Mid-August
Sep. 19, 2016
Ex you’ve really gone to town with your posts in this segment. Many, many thanks, A
Thanks. I’ll throttle it back, but thought investors may like some of those updates. There is never a dull moment in the mining industry.
Up above, I briefly mentioned NexGen, and have been off on a tangent, but decided to work up a quick chart. It looks like it is bouncing off the 200 day EMA and the Slow Stochastics and RSI are oversold and turning up. I’d think that 50 day EMA will be next resistance to test. While I’m here I’ll just post it in case anyone else has any interpretations. Cheers!
http://stockcharts.com/h-sc/ui?s=NXGEF&p=D&yr=1&mn=0&dy=0&id=p52907638011
I see what you’re saying on the daily chart, Exc, but the weekly chart still looks heavy to me, particularly the MACD.
http://stockcharts.com/h-sc/ui?s=NXGEF&p=W&yr=4&mn=0&dy=0&id=p12367885658
Yes, when I look at the weekly it does look bearish, and yes the MACD has widened, but the slow stochastics just crossed and they move first and the MACD is a lagging indicator. It may just be a short term pop before another larger drop, but I’m trading the pop and well sell into strength on the daily, and be mindful of the weakness on the weekly.
Thanks GH!
In looking at it on longer term charts, there is the distinct possibility that it could have just put in a large head and shoulders pattern, which would lead to a nasty drop in the longer term. Going to have to keep an eye on this one. I may sell a partial position into the bounce.
P.S. – I just remembered to check in on KNT (K92) That we discussed last Thur/Frid.
On September 16, 2016 at 7:47 am,
Excelsior says:
“So for KNT it is at next support at the 200 day EMA @ $1.08. K92 will still need to prove itself by breaking above the 34 day EMA to the upside when it does bounce and go back up to test that next time.”
“As a clarification I was using the 200 day EMA at $1.08, but after reading his [Matthew’s] response more carefully he was discussing the 200 day SMA at $.93. Both are levels worth considering for where support will come in, but first stop is $1.08.”
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So far so good with K92 bouncing as expected at the 200 day EMA. Not surprisingly, KNT went down and tagged $1.08 and bounced, but it hasn’t had a ton of conviction. I’d get more bullish if it can pierce through the 34 day EMA resistance.
I included all 3 moving averages (34, 200 EMA, 200 SMA) for illustrative purposes.
http://stockcharts.com/h-sc/ui?s=KNT.V&p=D&yr=0&mn=4&dy=0&id=p10419731679
Excelsior – your response?!