Hour 1 – Key Considerations For The Markets and Company Updates
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Another mixed week for the markets. With little happening in the resource sector in terms of price moves we stick to company updates. Be sure to checkout our site for a number of updates throughout the week. These are also linked below.
Besides the company updates we look at the US market mixed picture and how the tech sector continues to outperform. We also get a comment on the uranium sector from our good friend Chris Martenson.
Please keep in touch by email me with any companies or guests you would like to see on the show. I try my best to keep up to date on all the emails I get but I always make sure to follow up with the companies and guests recommended. I can be reached at Fleck@kereport.com.
- Segment 1: Chris Martenson, Co-Founder of Peak Prosperity shares his thoughts on the uranium sector and the overall cryptocurrency investment narrative.
- Segment 2: We get a comprehensive update from Falco Resources. Vincent Metcalf and I discuss how the development of the Horne 5 deposit is progressing as well as the recent drill results at the Donalda target.
- Segment 3: Fund manager Dana Lyons points out that active managers are more than 100% invested and how the tech sector is benefiting.
- Segment 4: After my site visit last week to the Revival Gold properties in Idaho I chat with the President and CEO Hugh Agro. He addresses some of the questions that came up during the visit.
Company News and Interview
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Click download link to listen on this device: Download Show
Click download link to listen on this device: Download Show
Click download link to listen on this device: Download Show
Thanks for the show. I always enjoy hearing Dana Lyons market perspective.
Thanks for the conversation on uranium, but respectfully it was too general to be very helpful. Thorium is probably decades away at scale (if ever), so not really on the radar in the next few years. Don’t let it throw you off the trail.
The uranium industry and supply chain is very opaque and one has to dig into the details to figure out which companies have something and how close we are to the market beginning to really accelerate.
The answer seems to be “pretty close”, for many reasons, both obvious like Cameco probably having to put MRiver on care & maintenance and subtle like the fact that the price for SWU that enrichers can get has tanked from ~$140 to ~$40, which will tighten supply….don’t know what SWU is or why it’s important? Neither did I 🙂 That’s why we need to dig into some details. It’s been a key downer on price as a secondary supply source.
Two good Twitter accounts for lots of detailed uranium info and links to videos, Ibank reports, etc. are: @Quakes99 and @JRPelchat
Also Cory I’d suggest you check into Mike Alkin, @FootnotesFirst on Twitter (and some good YouTube presentations & interviews) as a potential interviewee on uranium and other good investing topics.
My $.02. Hope it helps because uranium could provide life changing profits over the next few years if we get it even pretty close to correct.
Good stuff, Jay T.
Thanks
Thanks to Cory and the special guests for the weekend show.
It was good to get the exploration and development updates on Falco.
Cheers!
Gold Trades to the Lowest Price of the Year
Gary Wagner – June 22, 2018 #TechnicalAnalysis #Charts #Video
https://thegoldforecast.com/video/gold-trades-lowest-price-year
Not a very rosy picture for Gold, with the Death Cross eminent, but exactly what one would expect in the post Memorial Day “Sell in May and go away” seasonality patterns which kick off the “Summer Doldrums”.
Hardly any interest in the miners, posting traffic down on most resource blogs, and many NLWs noting their subscriptions are down over the last few months as many are completely uninterested in the Gold/Silver/PM miners.
Personally this is my favorite kind of set up with low Sentiment readings to watch for a low point to add to positions. If the metals keep pulling back and the miners get hit any worse than they have, I’ll have to feel around under the couch cushions and see if I can find any other loose change to throw at the Jr miners. 🙂
Ira Epstein’s Metals Video (6/22/2018)
#TechnicalAnalysis, Gold, Silver, Copper, Platinum
Precious Metals: Key Tactics Now
Morris Hubbartt – Jun 22, 2018
Super Force #PreciousMetals #Video #TechnicalAnalysis
Crude Oil Leaks Into Floodwaters After Train Derails In Iowa
Jun 22, 2018 – Associated Press
https://www.argus-press.com/news/state_news/article_e3a5fcae-29ed-5016-8b04-b599c9601bbd.html
This highlights the risk of shipping oil via train versus in the much safer (and often more cost efficient) pipelines. This is the reality that escapes most activists and protesters that try and stop pipelines, and they are only hurting everyone by forcing more oil on trains and tankers around the planet, which have far more likelihood of spill, wrecking, or in the case above derailing into water. What a mess…..
As an Albertan I can tell you your point above falls on deaf ears and enrages those who see through the BS. Albertans will be blamed for this somehow as we are blamed for most of the world’s messes. Just another day…
BTW… equalization payments from Alberta to the rest of Canada remain unchanged even after the price crash and economic difficulties Alberta is having. Nice that we go in debt annually so Quebec can sponsor their athletes and provide next to free daycare compared to us. Alberta -$20B to Quebec +$12B.
Yes, agreed Dan, calgary — most will still feel self-righteous protesting the pipelines, and feel they stopping those evil corporations, and as you mentioned the small percentage that understand the pipelines are actually safer, more economic, and more environmentally friendly will be enraged when they see needless wrecks and spills.
I don’t believe Alberta will get blamed for the wreck above, band yes it is shame the payments weren’t adjusted more post Oil crash in 2016 through present. Prices are only now starting to recover in the high $60’s – $70 price range but the oil patch went through a rough spot the last 2-3 years.
The floodwaters from the Little Rock river were the issue eroding the tracks, but the train operator BNSF Railroad could get blamed, although this was more an act of nature. Still if there was a flooded river shouldn’t that have at least been anticipated on their route? Very unfortunate event.
I honestly feel for the people that have to deal with the mess no matter the fault.
Germans rally against the country’s reliance on Coal
Valentina Ruiz Leotaud | about 11 hours ago
(DNN) (DML) Denison President & CEO Appointed to Board of Directors of Canadian Nuclear Association
June 25, 2018
https://ceo.ca/@newswire/denison-president-ceo-appointed-to-board-of-directors
Whereas this spill highlights the danger of not consuming Whiskey fast enough 😉
Hope they can salvage some of it. Have a great weekend!
Kentucky Bourbon Warehouse Collapses, Spilling 9,000 Barrels of Whiskey
The Associated Press (Bruce Schreiner) – June 22, 2018
https://www.bloomberg.com/news/articles/2018-06-22/portion-of-kentucky-bourbon-warehouse-collapses
Automakers spending $255B on EVs a ‘pile-up of epic proportions’
Frik Els | 2 days ago
http://www.mining.com/automakers-spending-255b-evs-pile-epic-proportions/
“The scramble by automakers to secure supply of battery materials has spiked the price for lithium, cobalt, nickel, rare earths and even copper”
Bitcoin still up 127% year over year, but the fall from the Bubble peak in Dec 2017 of $19,346.60 to the present price at $6,146.06 has been a brutal $13,200.54 crash of 68%.
Remy: $Bitcoin Billionaire – Remy rides crypto to the moon.
ReasonTV – Dec 21, 2017
I sold my HIVE back in early January with a nice gain. I remember wondering at the time if it was the right thing to do. I am glad I did.
Yeahk I sold some of my HIVE position on a trade, but held onto some, and that portion has halved in price which is painful, but not unexpected in such a volatile space of crypto mining.
I am actually considering adding back the position I traded to lower my cost basis, once I see Ethereum bottom, but believe it may still be a while of slogging downward first.
There has absolutely been a sector-wide crypto implosion since the end of last year (with a few coins that had fits and starts), and the crash was overdue. The reason I didn’t sell out of my crypto miners is that I thought they’d take a bit of corrective move, but that they would hold up better than the coins. (more like the royalty model compared to the metals/miners) The reality is that they provided leverage to the upside and downside, but that is great for trading as the volatility provides lots of mini-rallies and corrections.
I’d like to see the sentiment get even worse in the crypto space with more people officially throwing in the towel and for things to get buried in oversold indicators, and then I’ll be adding back to a few different crypto miners for a relief rally.
Thanks for you view Ex. I feel like the whole sector is like the dot coms of the late 1990s.There might be some winner that emerge from the rubble, but I think it will take a lot of time before this market is rational so I’m staying out and watching from the sidelines
Yes, most will belly flop and go up in smoke, but a few of the cryptos will survive as the winners. What I like about the miners is they have some flexibility in which coins they mine, and/or they can acquire the necessary equipment if they need different rigs.
For the most part though, I agree the greater fool theory is still in effect with most crypto pricing.
Bitcoin did dip down below $6K to $5,786.86 but has now bounced back up to $6173.
My question on HVBTF is whether or not it will fill the gap on the weekly. It is still not oversold on the weekly. I think it has more to go. The 200 week moving average may offer some support and a bounce, but I don’t think it will be sustained. I am thinking it might keep going down until closer to the end of the year. Keep me posted if you are seeing things change, but I think the gold and silver miners have better looking charts and are far more beaten down.
REALIST NEWS – DigiByte Interview
Manipulation of Gold & Silver by Bullion Banks – David Brady
As a former spot currency trader for a major international bank, I have had first-hand experience of central banks directly intervening in currency markets in massive size, repeatedly. You’ll hear a lot of people say market manipulation is a conspiracy theory, despite the fact that it has been proven in court several times in various assets classes and especially in precious metals. Books have been written about Gold and Silver manipulation for decades. Central Bankers have admitted it publicly. Now it has become so obvious that it’s predictable. I know because I made 500% in less than 24 hours on Friday last on a 1-week SLV 15.50 strike put option I bought on Thursday at 2pm. I bought that put expecting the Bullion Banks to come in and hammer the metals, given the typical signals I was seeing ahead of each time they slam Gold and/or Silver lower. Moreover, I began warning people on Twitter a week ahead of time that this could happen (note the dates posted):
https://www.sprottmoney.com/Blog/manipulation-of-gold-silver.html
3 AMIGOS (SPX/GOLD, LONG-TERM YIELDS & YIELD CURVE)
June 22, 2018 Gary – Notes From the Rabbit Hole
https://nftrh.com/2018/06/22/3-amigos-spx-gold-long-term-yields-yield-curve-updated/
$ZNX ZincX Beats $AZ Arizona Mining
Bob Moriarty -Jun 22, 2018
“ZincX shares are selling for $.35 CAD. That gives the company a market cap right now of $58.2 million CAD or $43.9 million USD. If South32 paid the right price for Arizona Mining (and it’s all in cash) and they paid 2.31% of the metal in the ground value, it’s a simple math problem to say that ZincX with a similar silver/lead/zinc project should be worth 2.31% of $8.56 billion USD or $197 million US or $262 million CAD.”
“That makes ZincX very cheap. Cardiac Creek is 100% owned. Arizona Mining uses a figure of 3% for an average NSR. ZincX has no NSR. There are a whole bunch of differences between the two companies all of which are more favorable to ZincX.”
“ZincX just released a PEA on June 20th giving very interesting numbers. Shares in ZincX are up almost 50% in a week since the South32/Arizona Mining announcement. I think they are going to go a lot higher. I’m not the only person doing the math.”
http://www.321gold.com/editorials/moriarty/moriarty062218.html
(ZNX) (CZXMF) ZincX Resources Mobilizes Exploration Crew to the Akie Property to Commence the 2018 Exploration Program
@fscwire on June 25, 2018
https://ceo.ca/@fscwire/zincx-resources-mobilizes-exploration-crew-to-the-akie
(GFG) (GFGSF) GFG Completes Acquisition of the Sewell Property Adjacent to its Pen Gold Project West of Timmins, Ontario
@nasdaq on June 25, 2018
https://ceo.ca/@nasdaq/gfg-completes-acquisition-of-the-sewell-property-adjacent
Good article on the gold and silver stocks everyone here should read.
https://rambus1.com/2018/06/24/weekend-report-state-of-the-markets-gameplan/
Spanky needs to read that thrice!
Thanks for sharing Charles.
That was a great overview by Plunger on the Rambus blog. Lots of eye-popping charts and great macro overview.
Thanks for show