Hour 1 – This hour is for the metals investor including significant company updates
Considering how boring the precious metals prices are currently it was a very busy of company interviews. This hour of the weekend show is no different as I feature two significant news releases.
Be sure to check out the interviews from the week and all the company updates, linked below.
Please keep the emails coming to Fleck@kereport.com.
- Segment 1 – Marc Chandler, Managing Partner at Bannockburn Global ForEx kicks off the show with a recap of the major market moves this week. We discuss the ECB statement, another +2% drop in the S&P, and the factors continuing to push base metals higher. Click here to visit Marc’s fee blog.
- Segment 2 – David Erfle is next up and turns our focus to the precious metals. We discuss the recent trading action in gold and silver and where David sees prices move over the next few months. We then dive into a recent report David released on Bunker Hill Mining. Click here to learn more about David’s newsletter.
- Segment 3 – O3 Mining (TSX.V:OIII) released news this week on a PEA for the Marban Project. Jose Viszquerra, President and CEO of O3 joins me for further comments on the PEA and the key numbers that investors are focusing on. We also discuss the current drill programs ongoing. Click here to read over the full PEA news-release.
- Segment 4 – Mike Konnert, President and CEO of Vizsla Resources (TSX.V:VZLA – OTCQB:VIZSF) wraps up the show by recapping the 3 high grade silver discoveries the Company has made in the past month. Click here for a summary of the recent news releases out of Vizsla.
The next KE Report webinar is on September 22nd at 1:15pm PDT. I will be featuring Eclipse Gold Mining and Brian Leni will be joining us for his comments on investing in the gold market. This is a great opportunity to learn more about this exploration company focused on the Hercules Gold Project in Nevada and ask whatever questions you have.
Click here to sign up for free. And be sure to send me your questions regarding Eclipse Gold Mining to Fleck@kereport.com.
Exclusive Company updates This Week
- AbraPlata Resources – Recapping lots of news from August and recent exploration drill results
- Novamera update – The new narrow vein mining method, Sustainable Mining by Drilling is being tested in the field
- District Metals – Recapping the work ongoing that is moving toward drilling at the Tomtebo Property in Sweden
- Lion One Metals – A comprehensive look at the high-grade gold results from the wedge hole at the Tuvatu Project
- Libero Copper and Gold – Introducing this copper and gold explorer with drilling ongoing in the Golden Triangle and upcoming in Columbia
- Adventus Mining – 3 drill programs underway with an exploration focus and more information on the CanStar deal in Newfoundland
Keeping an eye on Vizsla,,,looking good I think,,, 🙂
Production, would be a question,….. Sprott being involved is a plus
Agreed OOTB. Vizsla does have the option on the mill if they want to fast-track things into production over the next 2 years.
Thanks EX……for the info.
Getting into production ,……On time..which I believe should should be , before or close to the time, that silver breaks out of the LARGE CUP Long Term Cycle, of $49.
Roger that!
Inflation, Deflation And Other Fallacies
By Alasdair Macleod – Goldmoney Insights – September 10, 2020
https://www.goldmoney.com/research/goldmoney-insights/inflation-deflation-and-other-fallacies
https://youtu.be/5UcXuR7LbmU?t=57
Precipitate gold
Bob Moriarty: The Next Two Months Could Be Catastrophic In American History
by Ceo Technician (@Goldfinger) – September 12, 2020
> Goldfinger: “It’s good to speak with you today Bob. We’ve had a pullback in the precious metals sector. And we’ve had some volatility in the stock market in the last couple of weeks. You basically called for the pullback in precious metals. You were a little bit early, but you got it pretty right on. Where do you think we’re at now in gold and silver? Do you think that we’re still in this corrective process?”
>> Bob Moriarty: “That’s a really good question, and there’s two answers to it. We have absolutely not seen the high in gold and silver. The actions of central banks, and especially the treasury and the Fed, are going to destroy all fiat currencies, and certainly including the dollar. In fact, we’re probably going to go into hyper-inflation. If we turned around tomorrow and gold and silver went up, I wouldn’t be as happy as I would after a good, solid correction that wakes everybody up. Investors vary from being too optimistic to being too pessimistic, and I would really like to see people get pessimistic. Now that doesn’t change anything about the value of gold or silver, it just changes how people look at it. However, with the DSI on both gold and silver, still around 60, that’s very high. I would really love to see it come down to 10 or so. However, I will say the next six weeks or two months could be catastrophic in American history.”
> Goldfinger: “Now, let’s get into some specific companies. There was another question from a reader about ANX, which is Anaconda Mining (TSX:ANX, OTC:ANXGF). He’d like to hear your current views and opinions on Anaconda.”
>> Bob Moriarty: “Anaconda is a sleeper. It has excellent management. It’s in Nova Scotia and it’s in Newfoundland. They are a producing gold company and the only reason they’re not 10 times higher than what they are is because they’re producing under 100,000 ounces a year. They are well aware that their target is to pick up projects, increase production and to get above 100,000 ounces. I own Anaconda and I love it.”
> Goldfinger: “What about some of the other companies that I know you follow? I know Novo Resources (TSX-V:NVO, OTC:NSRPF) has made some progress with acquiring a mill and closed a financing in the last several weeks.”
>> Bob Moriarty: “Well, Novo has closed on the acquisition of the mill. 18 months from now, Novo will be producing somewhere between 100,000 and 125,000 ounces of gold a year and with $2,000 gold, you could not help but to make a lot of money. Their costs will be somewhere between $800 and $1000 an ounce. Investors can do the math.”
> Goldfinger: “What about Lion One (TSX-V:LIO, OTC:LOMLF) or Irving (CSE:IRV, OTC:IRVRF)?”
>> Bob Moriarty: “Lion One continues to have excellent drill results. That’s going to keep going. They’ve brought in another drill. They have the ability to deliver assays on site and that’s very important from their planning point of view. They can drill today and know what the results are tomorrow. Now, they send the pulps to Australia for backup confirmation, but Lion One has an alkaline system. It’s going to be five or 10 or 15 million ounces. They own the whole damn thing. They have a ton of money in the bank and they’re doing really well.”
Some great info,,,,,,,,,,Bobby is always a great read……….JMO
Like to here Bob still positive on Anaconda despite the run they have had.
Likewise. I’m still constructive on Anaconda as well, but have trimmed some back after such a nice appreciation this year. I’m excited for them to move the ball down the field with Goldboro to get it into development, and I was hoping they’d make a move again to acquire Maritime Resources, now that there are different teams involved with both companies that will be less combative. The combined entity still makes a lot of sense.
Thanks Ex. I fully sold out of my one account and partially out of the other. Hoping for a bigger pullback to get back in.
Agreed. If there was a nice pullback in ANX then I’d likely add back to the position I trimmed, but for now just holding as things advance, as Gold prices move higher, and waiting for the next more meaningful announcement (merger, development decision, exploration breakthrough at one of the properties). Cheers!
Equinox Gold Drives Mexican Farmers to Shut Down Los Filos Mine to Protect Their Dignity and their Health
11 September 2020,
“On September 3, 2020, the families of the Ejido of Carrizalillo in Guerrero, Mexico, shut down operations at Canadian mining company Equinox Gold’s Los Filos mine. Goldcorp began building the mine on Carrizalillo’s collective lands in 2006, which it had purchased illegally, leading to the first 83-day work stoppage at the mine by Carrizalillo. Equinox Gold acquired Los Filos when it merged with Vancouver-based Leagold earlier this year. ”
Problem
Moving forward with Equinox Gold, the Ejido of Carrizalillo have stated that they will only sign agreements on a year-by-year basis.
Torex Next?……….Is Mexico going to be a hostile area?
The community of Carrizalillo, as well as other communities in the state of Guerrero, are living and breathing the toxic effects of mining operations. Many of those companies, like Torex Gold and Equinox Gold, orex next
typo,,,,,,,forget “orex next”
Is this a problem with Beaty?
Beaty, and the company, have yet to respond officially to our letter. However, Beaty’s paternalist tone and nonchalance about the serious concerns for people’s health, safety and well-being that we raised in our letter, and about the real threat of repression and violence that communities could potentially face due to this conflict, is shocking, but not surprising. His response makes evident the complete lack of regard that Beaty, one of Canada’s most important mining investors, has for communities and their environments.
Are we seeing some on going problems here?
In Guatemala, Pan American Silver bought the controversial Escobal mine where long-standing opposition to the mine had paralized its operations since 2017.
Good points on jurisdiction risk OOTB. Like every country (be it one in West Africa, in South America, in Asia….), it really comes down to the regional and local level, and Mexico is no exception.
There are certain Mexican states that have a solid history of mining and community support and less gang or cartel intervention, and others like Guerrero state that have been more rough over the years. I would be somewhat concerned for Torex Gold there in Guerrero, and they’ve had flair ups in the past. Also, yes, Equinox Gold has been rather quiet about this issue they are facing lately as they try and work things out, but having the locals only agree to a year by year agreement doesn’t sound very confidence boosting for investors in the company.
Having said that I’m very comfortable investing in many parts of Mexico, and most of the fantastic silver miners are all working in Mexico in various areas. That is where the best Silver deposits are. There are some other good ones in South America, but those have their own challenges of power, water, and local community support as well.
This also underpins the need for investors to diversify across different jurisdictions, and why I believe North American Silver exposure is going to get a major premium in the years to come. Alexco & Metallic Minerals at Keno HIll in the Yukon, or Dolly Varden in the Golden Triangle, Coeur Mining and Americas Gold & Silver operating in Idaho & Nevada, Blackrock Gold in Nevada, Brixton in Ontario/G.T./Montana, Northern Vertex and Arizona Silver in Arizona, Bayhorse Silver in Oregon, or Aurcana Corp in Colorado and Texas come to mind.
EX……thanks for the reply
I just thought,,,Mexico, is kind of a surprise , that one should have to worry about the country as being a problem. But, with that said.
Then I thought, …Ross, is one that investors should not have to worry about.
One really has to do their DD going forward…….just when you thought it was safe to go in the water,,,,,lol 🙂
Agreed. Just when you thought it was safe to go back into the waters… Jaws strikes.
I believe Ross and the Equinox team will ultimately navigate the choppy jurisdictional waters in Guerrero state, but if the locals are pushing back hard then that is always tricky sailing.
That would be called “tackless”….. 🙂
Let’s just hope people don’t sail off the deep end…. In these uncharted waters… 🙂
Ross Beaty:
(NHK) (MIMZF) Nighthawk Files Technical Report for Mineral Resource Estimate on the Indin Lake Gold Project
by @accesswire on 11 Sep 2020
https://ceo.ca/@accesswire/nighthawk-files-technical-report-for-mineral-resource
Great week of shows and info gentlemen. Not sure if this posted already. Certainly sums up the strange times we live in.
“without direct government transfers (stimulus and unemployment paychecks), continued central bank interventions, and massive borrowing from future generations, this “new normal” would have already collapsed.”
+1 Coming out of the 2008/2009 Great Financial Crisis, the bailout of failed banks and insurance companies, and “economic recovery” based on the rise in the high flying mania tech stocks and which pulled up the general stock indexes was absolutely central bank interventions and massive borrowing from future generations.
If the Fed doesn’t keep inflating the bubble and pouring more funds into propping up the markets, the whole thing would have imploded years ago, for a reset. Those natural market forces have been staved off though through intervention, and dead companies were given cash injections to become the wave of Frankenstein and Zombie companies of today –> The Walking Dead.
Hey guys!
Thank you all for your contributions and keeping it going in here. We have been stuck in a range and basically killing some time to see price action and more importantly direction.
Just wanted to touch base in regards to Ex posting about bobs interview. I respect bob and he has more knowledge than most I have seen but we need to call it how it is and the interview is a bit misleading. Bob did not call a turn around or correction a “bit” early. He called it way to early and plenty of profits were left on the table. We need to be open with this as bob himself is critical of others as well when things don’t go his way. Besides that I don’t have a problem with bob as i have learned plenty. I myself have also made plenty of mistakes through the years.
Gold update!
Gary savage continues to suggest the fourth daily cycle will give way to lower gold prices in the region of $1750/1800.. I mean we have been in a multi week correction for sometime and he may very well be right but the problem I have with this now is most Investors seem 50/50 or 60/40 which ever way you look at it in regards to up or down in gold.
I will let you know glens perspective from his lens..as you all know i have two more tranches ready in case we do head further down hence why I only used 2/4 of my tranches when buying at the last low. My point is if it goes down it goes down. But may I say that I was left with a feeling of not enough bullishness In gold top to satisfy my hunger something I think Gary is missing. I believe if we were to go down I would have preferred my neighbor or daughters soccer coach talking about gold and that never happened at that high. I look at price and timeline with elections and I say no way in hell will they initially allow gold to rally when it comes. So I would think gold would get knocked down going Into final day election. My point is that I’m feeling very confident that a fifth daily cycle will produce that high me, Matt and I think ex Jerry and otherS possibly wolf see..my target for many of my miners had higher prices before a “meaningful” correction. I believe gold will rally very soon as covid second phase is kicking up and numbers are going higher blah blah blah…
And if proven correct, gold should launch us into Jerry’s target and possibly much higher before Gary gets his wish of an intermediate cycle low. Interesting times let’s see what gives…
If anyone out there is in my camp and believes that the intermediate cycle top is not in yet can i get your vote?
I’m staying firm with my call that this will be close to a 9-12 month intermediate cycle from low to top to low. If my scenario works out the intermediate cycle low could possibly come in January-March
Cheers to all
Hello Glen,
I am in your camp……..I do NOT, find anything that you mentioned above out of line, rather I THINK, YOU ARE SPOT ON.
I just do not see Gary’s take as being realistic at $1750..JMO
That stinken cup was correct, the handle is screwed up……. 🙂
Btw,….Hope all is well….and stay safe……all the nut jobs are out,,,, 🙂
Thanks jerry..:)
I really appreciate your response. I don’t know what has happened to the rest of the clan? Including matt and his charts which we could use at this particular moment. I hope everyone is doing well.
I’d like to mention that if I ever come across like someone who does not read everyone’s post I ask for forgiveness because I do. There is only so much I can read and respond to. Most of the time what I read I find interesting and really needs no response but I understand some, need that Fred back.
So I thank each and everyone of you who post daily and work your ass off and deliver news that’s worthy or not. I read and like many sometimes don’t respond because it means I’m good with such info..
Jerry your bang on with your cup and handle. I believe your target will be met sooner rather than later..
🙂 The cup has been handed off…..to a more needy crowd,,,, 🙂
THe silver crowd, would do well, to get a handle on the cup chart,,,,, 🙂
Glenfidish – Good comments on the Gold macro pricing potentials. Yes, Gold has been correcting since early August, as have the miners, and mostly through time instead of price. This is normal digestion of such a move higher, but I do still anticipate Gold and Silver and miners moving higher before a more meaningful corrective slump. We’ll see how things look later next week after the Fed addresses the markets on Wednesday, to see if prolongs the correction with lower targets in mind, or if things turn back up for the next move higher.
If Gold needs to pull back down to the low $1800s or high $1700s first, before the next substantial move higher, then so be it, but it’s possible it may do one more run higher in that 5th daily cycle you mentioned before doing that.
Regardless of the metals prices, I still remain firm that the mining stocks have not even come close to pricing n the current metals prices, or even lower metals prices. The Silver miners are still priced like Silver is at $21-$22, not $26-$28, so if it pulled back to there, maybe it would be healthy to retool and build higher more incrementally next time in a stair-step higher. Gold miners are not priced even close to where they were when Gold was last in the $1800s, much less the $1900s.
It has been mentioned a few times on here by us and by other speakers on the daily editorials, but I believe when the 3rd Quarter operations numbers come in during October/November, then some of the producers are going to finally get re-rated higher.
In Q1 the prices were healthy to start, but the selloff started in late February, and escalated into mid-March, barely bumping higher by the end of March. At the end of that quarter, metals prices were in the doghouse still, so operations were not that robust. In Q2, the metals prices started to rise, but the Covid-19 shutdowns affected the vast majority of Gold miners (depending on jurisdiction), and really hammered the Silver miners as Mexico was down from April to June.
As a result, the 3rd Quarter has been the first time the miners actually have been open for business under normal operational conditions, but paired with the the higher metals prices. When these numbers come in and they show how profitable producing at these metals prices have been July – September, especially when so many other industries are posting record losses, we may see more generalist money flows come into the larger & mid-tier producers. Heck, even some of the smaller producers are really going to shine and garner more attention.
As the mining industry, analysts that cover the space, institutional funds and retail investors process the 3rd quarter production numbers and profits, many will then consider how much all the other developing projects may actually be worth at higher metals prices. At that point, I expect to see the Mergers & Acquisitions space pick up more steam again because people still valuing Gold projects at $1300-$1500 will realize we aren’t going back down to those prices any time soon, and at $1700-$1900 these things are going to be cash cows. If gold gets back up above $2000 then forget about it, they are going to go up multiple fold.
Overall, I’m less concerned about the price of the Gold or Silver, even if it pulls back some, but much more focused on the mining companies finally showing an incredibly profitable Q3, and waking up the market as to what these companies can make when the wind is in their sails.
Until then… Ever Upward!
Great points Ex!
You make very valid points I’m regards to pricing witching the miners and third quarter profits. Once the new reevaluations come in and reflect the price of gold, I would expect many more to come join the party. For now markets are forward thinking and the team in here knows this and is well positioned for such advances.
Like you said let’s see what this week brings and as Matthew mentioned on the newer blog. If it’s going to move this should be the week with the fed news.
Cheers mate 🙂
Yes amigo, let’s see how later in the week goes, post-Fed-babble. I wouldn’t be opposed to it the PMs and miners heading higher from here, and correcting later from a higher level. We’ll see how it goes. Wishing everyone prosperous trading.
Hey Glen
I’ve been in the camp that is bullish obviously. I anticipate +$30 silver and a new high for gold before the end of October. Was thinking September at one point(2weeks ago still) but that might have been more wishful thinking. In the mean time I’m playing the run in copper plays.
Wolf,
What a great strategy.. I did venture into some copper plays about two months ago. There doing just fine. Only two stocks. Wish I had loaded up more which is always the case.
Thanks for your thoughts.. I really like your timeline for that top in October.. we would think we have about 4/5 weeks if this daily cycle goes up here. The fifth daily cycle that is. So far hold having a nice day today.
For what it’s worth, I had originally envisioned we weren’t go much higher than $1800 until after the November election. But, that call went the way of the DoDo as I, evidently, did not expect to see what we saw with the strong shot upward in gold and especially silver. I recognize that the upward move aligned pretty well as per your call Glen. So, again, hats off and a big kudos to you on your call, including the top.
I also wouldn’t leave Matt out here either, because he’s been holding fast and beating the drum on higher silver prices.
If it goes down to 1800, then I’m no worse off than what I had initially envisioned. But, somehow, I don’t think we’ll be seeing things drop back to the 1800 level, nor do I think we’ll be seeing a significant rally this Fall either.
Further, as per your comment Glen, I do agree that the tendency would be for gold to get knocked down leading up to the election.
Generally, I think our community is leaning a bit more toward upward price trends than a trend of it heading lower.
I just don’t have the confidence that the PMs will be rocketing upward much higher for now. Though, I do still believe the PMs and stocks have along way to go, and I have not adjusted my investment approach.
Canuck,
Thank you for the kind words… for the record I did not pick the top in gold but did consistently voice direction of movement and my status which lined up as you said with price movement. Matt, Jerry and ex also deserve praise as you said. I try my hardest to be transparent and open and as you know before the facts not after which is what I believe to be most credible. What I’m saying is I try to my best to tell you what I’m doing before gold action.
It’s never to late to turn luck your way. Follow simple rules like I do. I currently believe we are headed higher so I would absolutely not be a buyer here. If we go higher than this would be an opportunity to unload some trades into the high. But at the intermediate low those are few chances we get. Your going to be fine as my friend jerry would say we have a few years to go and higher prices..
All the best
Glen
Rick Rule: The Coming Bull Market For Gold And Uranium
Small Caps – Sep 11, 2020 #VIDEO Interview
“Rick Rule, president and CEO of Sprott US Holdings Inc, joins Small Caps to share his views on the gold and uranium markets and where he sees them heading in the coming years.”
Thanks Cory & Big Al and to the KE Report contributors for another great week of daily editorials and the weekend show.
It is nice to get an update on both O3 Mining and Vizsla Resources. Ever Uowards!