Hour 1 – Trade vs US Markets and Comments On Specific Metals Stocks
It was a week dominated by trade and tariff talk. As Friday hit we saw additional tariffs implemented on good from China as a deal was not reached. This continues to be the overwhelming story for investors as the lack of clarity is keeping everyone guessing as to how this will all play out.
Be sure to go back and listen to the daily editorials focusing on the trade issue as well as the company interviews (there were a lot of them this week) that were posted on the site.
- Segment 1 – Marc Chandler, Managing Partner at Bannockburn Global ForEx recaps the trade news and market reaction throughout the week. We also look at the pullback in the USD this week.
- Segment 2 – Dana Lyons weighs in on the buy the dip mentality for the US markets and the sectors that could add a boost to the broad averages.
- Segment 3 – I switch the focus to the resource sector with John Kaiser, Founder of Kaiser Research. We look into three stocks that have drill programs this year following up on positive results from last year.
- Segment 4 – Erik Wetterling, Founder of The Hedgeless Horseman wraps up the first hour with comments on how he is managing his portfolio in this sideways metals market.
Exclusive Company Interviews This Week
- Lion One Metals – Near Term Production and New Exploration Potential
- Anaconda Mining – Updates On Q1 Positive Cash Flow and High Grade Drill Results From The Argle Deposit
- Maple Gold Mines – Testing New Exploration Targets This Year
- Osisko Metals – Updates On The Bathurst Exploration Program, High Grade Results From Pine Point, and OTCQX Listing
- First Cobalt – Updates on the refinery startup and answering your questions
Interesting Amazon news:
VANCOUVER, British Columbia, May 09, 2019 (GLOBE NEWSWIRE) — FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the “Company” or “First Majestic”) is pleased to announce the unaudited interim consolidated financial results of the Company for the first quarter ended March 31, 2019. The full version of the financial statements and the management discussion and analysis can be viewed on the Company’s web site at http://www.firstmajestic.com or on SEDAR at http://www.sedar.com and on EDGAR at http://www.sec.gov. All amounts are in U.S. dollars unless stated otherwise.
FIRST QUARTER 2019 HIGHLIGHTS
Silver equivalent production of 6.3 million ounces, down 3% compared to Q4 2018
Pure silver production of 3.3 million ounces, up 2% compared to Q4 2018
Revenues for the quarter was $86.8 million, up 17% compared to Q4 2018
Mine operating earnings of $10.3 million, up 214% compared to Q4 2018
Cash flow per share was $0.12 per share (non-GAAP)
Cash costs were $6.34 per payable silver ounce (net of by-product credits)
All-in sustaining costs (“AISC”) were $12.91 per payable silver ounce
Net earnings of $2.9 million (EPS share of $0.01)
Realized average silver price of $15.73 per ounce
Strong balance sheet with $91.5 million in cash and cash equivalents
In a May 9, research note, iA Securities analyst George Topping reported that with a strong Q1/19, Franco-Nevada Corp. (FNV:TSX; FNV:NYSE) “continues to demonstrate that it can deliver even in a poor gold market.”
Topping highlighted that the company achieved a beat during Q1/19 with respect to gold equivalent ounces (GEOs) added to its portfolio, EBITDA and cash flow per share (CFPS).
GEOs totaled 122,000 (122 Koz), exceeding iA’s forecast of 105 Koz and representing a 16% quarter-over-quarter (QOQ) increase. Outperformance in Latin America and Canada drove this result.
EBITDA came in at $141 million, compared to consensus’ estimate of $132 million. CFPS was $0.72 whereas consensus had projected $0.65 per share.
Q1/19 revenue for Franco-Nevada was $180 million, up 13% QOQ.
The New Normal Is Here — and It’s About Time…
Management teams are able to max out their option packages with vehicles called:
DSU – Deferred Share Unit
RSU – Restricted Share Unit
PSU – Performance Share Unit
All of which, by the way, require no skin in the game – THEY GET THESE FREE.
As debt continues to build, shareholders will be receiving less free cash from operations.
Look, this isn’t meant as a rant.
So much of our industry is run by individuals that don’t have a sound understanding of mathematics…
The real cost of capital for resource companies just got a lot more expensive. If the Oracle of Omaha just slapped OXY with 8% preferred shares and a ½ warrant at a 9% premium to the market, the resource sector across the board will be paying higher rates moving forward.
New low in comments that last two weeks on Cory’s great weekend show & gold/silver ratio is 88:1 this morning………me thinks the bottom is in!
THanks for show, guys. Hi, Skeeta.