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Weekend Show – Joe Mazumdar & Matt Geiger – What The Election Means For Resource Stocks

Cory
November 9, 2024

 

Welcome to The KE Report Weekend Show. It was a busy week with the US election and Fed meeting dominating market headlines. I have to say I’m glad the week is behind us and we can look ahead to the last 2 months of 2024. However the selloff in metals and the stocks was not pleasant.

 

On this weekend’s show we focus on how the election results could impact metals markets. A focus is on the precious metals, copper and critical minerals. We hope you all enjoy the show!

 

  • Segment 1 and 2 – Joe Mazumdar, Editor of Exploration Insights joins us to provide an in-depth analysis of how Trump’s policies might influence the precious metals market, critical minerals, and mining regulations. We also explore potential changes in energy policies and their effects on metals like silver and copper, along with the state of the M&A landscape in the mining industry
  • Click here to visit the Exploration Insights website to follow along with Joe. 

  • Segment 3 and 4 – Matt Geiger, Fund Manager and Managing Partner at MJG Capital wraps up the show by focusing on the junior resource stocks. We delve into historical market cycles, the impact of political changes on resource companies, and the current M&A activity in the mining industry. Matt also shares his thoughts on recent drill results out of Ridgeline Minerals.
  • Click here to visit the MJG Capital website to learn more about Matt’s fund.

Joe Mazumdar
Matt Geiger
Discussion
25 Comments
    Nov 09, 2024 09:45 AM

    Yes but!! Post Trump’s election mortgage rates are going up – possibly heading to 7%. The bond vigilantes may finally start to wake up from their long, long, long slumber. Tariffs, massive tax cuts, no taxes on tips or Social Security income and higher spending will really get inflation going again. Wackos and conspiracy nutcases in charge of massive Government Agencies will spook everybody. Fasten your seat belts – it will be a bumpy ride.

    Nov 09, 2024 09:33 AM

    A stock I have added recently is Provenance Gold Corp. (CSE:PAU) The company holds interests in Nevada and Eastern Oregon USA. You can’t get better all-around property locations. Some of their deposit is oxide gold which makes it easier to process. Their Eldorado Property in Eastern Oregon has been turning up some impressive hits from surface.

    Hole ED-07 from surface to 114metres 3.08 g/t au

    Hole ED-11 from surface to 118 metres 3.278 g/t au

    As always DYODD

    https://www.provenancegold.com/eldorado

    Nov 09, 2024 09:23 PM

    Mazumdar discussion: Thanks for supporting discussions about the impact of a particular party on the future of precious metals. I think Joe did a very balanced job of reflecting potential impact. I just wanted to possibly add some thoughts …not for the purpose of starting name calling etc… just add some thoughts that I am hearing and reading.
    –One of the impacts will be that with the Repubs controlling all the “checks and balances” there will be not challenging or modification to “Citizens United”. Citizens United is very favorable to Laws supporting Corporate Interest and generally wealthy individuals. The previously recognized Transfer of Wealth will continue which will probably help mining and investment and possibly more “monopoly” type situations as they will not be blocked by Regulators.

    — Bitcoin has and will be encouraged as an investment for main street. Some of thought is that as long as Central Banks are buying gold and silver, the General Public will be pushed toward Bitcoin to try to maintain less pressure on gold/silver prices as long as Central Banks are buyers.

    — With the increase in authoritarianism, there is an increased risk of Confiscation and Nationalization of miners. This generally thought to be an unwise action for the industry or well-being of a country, but never-the-less, an authoritarian approach always increases risk of Governmental interest above the citizens. Think in terms of percent probability.

    — Joe mentioned more deregulation and that is a given. We have had about 50 years of it or more and the political setup is the best yet for Corporations, businesses and wealth transfer. Good for mining, I would expect, as well as for Wall Street.

    — Project 2025 will give you a good clue about where they are heading. Bannen came out and claimed that has been their agenda all along. It is highly skewed against the current “Federal” structure and is front end loaded to go after Regulatory Agencies and the DOJ. For those that keep up with the Legal side of things, since DOJ is the only Agency charged with enforcing the Law, Project 2025 will attempt to neutralize all Law at the Federal Level and Regulation leaving Federal Elected Officials pretty well free to do whatever they want and without Law there will be no Constitution. Individuals will be left out of any redress at the Federal level, but this will clear the path for Money Interests, Wall Street and large Corporations to control business activity. This, of course, will expand intervention in markets without regulation or recourse legally. Same thing with recourse against any businesses involved in interstate commerce. Local States and municipalities will still have access to local Courts but their will not be any Issues in Federal Courts as there will not be any Federal Statutes that apply.

    — Tariffs will be added to the Cost of Goods and therefore paid by the buyers. We have not on shored businesses to replace those that we import a lot of things for, so until we do, manufacturers will have to add the costs and inflation to goes to the buyers.

    — EVs, etc: Those are crashing on their own and so are those Manufacturers that went too heavy in that direction. There are many reasons why rapid expansion would not work for no other reason other than the World can’t dig up or find the metals fast enough. Putting that aside, the infrastructure is not there nationally and has to be coordinated. Add to that the large national debt, the transfer of wealth, the corresponding inflation, the over valued stock market, Covid interruption, lack of wage increases to inflation, are just a few of the reasons that EV won’t work including they are over priced, interest rates too high, people are unemployed, underpaid or just flat too many cars for the # of people who can buy one. Jeep, Chrysler, Nissan, Mazda, are in trouble. Toyota, who was smart by developing more hy-brids, have now run into quality issues in their I-4 engines and 8 speed transmissions … meaning with all that is going on with many issues, manufacturers are cutting corners and hurting quality. So there you go…everything that could become a problem for autos, is a problem. Probably won’t hurt miners because demand is still there and probably still can’t be met even when things are cut back.

    — Trump Leadership. He will hire people to do it until they are fired. Hopefully they have expertise in their chosen positions and hopefully they will not be opposition to the Agencies they head. But, they probably will be assigned with the agenda 2025 which plans to end regulatory agencies at the Federal Level. This could be both positive and negative to mining depending on whether “big money” wants to take an unfair interest in a mining project as there will be no Federal Agency or DOJ for recourse. Depends on Who Your Friends Our”.

    — Price Intervention: This will continue and although price intervention used to be illegal, it will continue not to be addressed or acted on. If “those that in power” see a personal reason to intervened in markets, they will do so and the most we can hope for is that at least someone gets a “token fine” but there will continue to be no “criminal option”. I would have to conclude that is favorable to “big money” and only favorable to individual miners if they happen to be at the same place at the same time.
    –State/Individuals to do something: Currently, many issues have been sent to the States to decide. As shown by concurrent votes in several states, “Right to Choice” was voted in in all those that had it on the ballot, but Florida. It appears that the States are expecting the new Administration to issue Presidential Actions or Agency programs that are Unconstitutional. Therefore, since states are familiar with the contents of Project 2025, they are already preparing filings for Federal Court to contest “unconstitutional and illegal” actions expected to come from the new Administration. Although Congress will not have the votes to contest, they still can fight funding issues as they usually require super majorities and by the filibuster that the Republicans used to like. It is unknown how this will affect mining issues, but I could foresee some states still not so happy about doing things on Federal Lands, Indian burial grounds, pollution issues, that could hang up some mining programs that could be very positive to those locations. But…these issues have to be anticipated when there is such a sweeping change to the Constitution, Governmental structure, Funding direction, power, control, personal freedoms.

    — If Agenda 2025 is successful, I think we will expand the # of dissatisfied people that are viewing their government as unresponsive. It appears that some form of some kind of recession or depression is going to happen one way or another. That is never good for the vast majority of people, although with the wealth transfer already taken place, the wealthy won’t be impacted. Therefore, the overall state of the economy, although Masked by false data for years, may have to take its medicine. It could take the General Stock Markets down as expected and miners still do well as Precious Metals are money and commodities are needed. We live in Interesting Times, but dangerous times.

    Nov 10, 2024 10:42 AM

    This just in! President Trump’s plan to dismantle the deep state. DT

    https://www.youtube.com/watch?v=NcMVdh915AE

    Nov 10, 2024 10:03 AM

    Heady days indeed. Interesting how many people are so focused on how manipulated markets are. Try focusing on what you can do to make money in these markets.
    Being overweighted in magna it’s easy to be euphoric these days but it’s still got lots of upside. The whole copper supply shortage issue isn’t going away any time soon regardless what happens with EV market. So many other demand catalysts.
    Really liking the whole potential in all the base/pgm plays. Right now I have aforementioned magna along with emerita,osisko and abitibi with all starting to trend upwards.
    Can honestly say I’m disappointed with where my silver plays are at vs the physical price(which is still low compared to gold) but waiting patiently for that inevitable run higher.
    I do worry that the Trump tariff plan will actually create inflation so rates may not come done as far or as fast as had been anticipated.
    This is the third time I regret not throwing some money at cryptos after the last big sell off. Solana was the one I had my eye on.
    Hope everyone is well and looking forward to another Santa Claus rally after the annual tax loss selling. If any screaming buys come about due to it please post about it.

      Nov 10, 2024 10:10 AM

      When the war in Ukraine is over the price of Platinum in particular and Palladium will soar. Russia and South Africa produce 89% of The World supply. Russia will stop selling to finance the War in Ukraine. Stillwater Critical Minerals Corp. (PGE) should start to get a bid as platinum prices move higher. President Trump wants to end The Wars. DT

        Nov 11, 2024 11:47 AM

        That is an interesting thought DT. It would seem to be a strong possibility and one to watch for.

    Nov 10, 2024 10:25 AM

    EV’s are dead, sure there will be some around as Boomer and Golf carts and there are the gullible crowd that believed the government could mandate electric cars by just wishing them on the public. The whole green agenda was forced on the people much like covid, and the mainstream media controlled by the “WOKE” agenda kept pushing the narrative. Most of the public was fooled but they are starting to see that government can’t solve all the problems by waving a magic wand.

    There is a huge future for base metals as much of The Western World needs to have a big infrastructure build-out, and there are the endless wars that destroyed so much of what people need to sustain themselves. Add in the new Tech economy and America’s need to rebuild its industrial base and you can see how important these metals are. But the market isn’t controlled by government bureaucrats it is controlled by sensible supply and demand.

    Two battery plants subsidized by The Canadian Government have already closed their doors before they got into production. The writing is on the wall, electric vehicles will only be a small part of the equation, new hydrogen technology is coming on fast and although it will have supply chain problems it is nothing along the magnitude of needs for EV’s. DT 🤣

    Nov 10, 2024 10:29 AM

    Breaking News:
    There is no Deep State.
    There is however, corrupt politicians, their appointed assistants and Elite Wealthy controlling elections through Corporations, Central Banking and Citizens United.
    Project 2025 is designed to destroy the Constitution and place power and wealth in the hands of a few.
    Read Project 2025 rather than put forth false claims and labels.

      Nov 10, 2024 10:44 AM

      “There is no Deep State”, you see it all the time people who are educated but can’t think for themselves, being able to regurgitate information on an exam paper does not make you qualified to think for yourself! LOL! DT

        Nov 10, 2024 10:39 PM

        So you admit you haven’t read Project 2025.
        Time to refresh readers that you also aren’t American.
        Please provide facts as Americans are faced with changes to their lives due to severe alterations proposed to our Democracy.
        Provide Facts … Read 2025 if you are serious about advice. Project 2025 has little to do with individual rights. … and a lot to do with transfer of wealth, redirection of legal authority to the advantage of a controlling elite and limitations on personal freedoms.

          Nov 10, 2024 10:49 PM

          Talk stocks and investing here ffs

            Nov 10, 2024 10:12 PM

            Sorry Wolf:
            My 50 or so are not moving yet particularly the silver ones. Magna moving and about 49 others do on alternating days. Account still range bound for almost 2 years. The only way this is possible on a repetitive basis is intervention by those having large funds and can front run daily market activities.
            General Markets are continuing one of the longest up run in history of the markets without a significant correction.
            US debt is unpayable. Interest rates are becoming also too large to pay.
            The Fed is boxed as their balance sheet is becoming overloaded with bad bank assets and they are torn between low interest rates to pump the markets or raising rates and pumping inflation so the debt is not as impactful … and killing personal wealth and the job market.
            There is no serious Regulatory activity that will forestall corruption that seems focused in political leadership and corporate powers. Wall Street banking is unstable and risk has been exercised to being on the edge of failure. Main Stream media avoids digging into the dire economic issues as all roads to lead to corruption at the highest levels.
            So … even though I have many Junior Explorers with good potential, and 15 years ago I might have wanted to participate in fervent discussions concerning their upcoming runs upward … the current state of outside intervention in the markets and the Democracy I formerly lived in,seeme to be co-mingling to thwart any fundamental or technical trends that last long enough to give any reality to trading or talking about. That seems to “force” concern about geo politics and their various impacts on all markets.
            That does make me think Gold, Silver and other critical metals will be valuable in the future. That just depends whether “individuals” will be allowed to share in the wealth.
            I hope that is close to talking stocks.
            (Short Version: How about that Magna. How about one of my other 49 get over +25% without triggering a hit.)

      Nov 10, 2024 10:54 PM

      If you, Lakedweller (Swampdweller?), would study as much as you comment you just might realize how absurd it is to suggest that there’s no deep state. There have always been puppet masters and always will be. Your blindness seems willful because you don’t seem mentally challenged, at least not significantly so.

        Nov 10, 2024 10:16 PM

        I worked 42 years in government service at state and Federal level. The Deep State claims are diversions from those that are committing the crimes. If there was a Deep State, any Administration could fix it internally easily. On the other hand. If the elected and appointed officials are corrupt, the vast #s of professional career employees have no recourse. Yes they can have whistle blowers but name any that have been successful. Was Trump successfully impeached or prosecuted. Has the Supreme Court made rulings that are unconstitutional. Have people turned on Wall Street and been successful. Has a former Governor and Goldman Partner destroy a commodity fund many years ago and never be prosecuted. Are failing banks that have large unsecured accounts of wealthy investors getting bailouts by a broke FDIC. Does JPM snd other banks get to buy the positive assets of failing banks for peanuts and the bad assets go on The Fed as a debt against the tax payers. Is The Fed audited so we know how much long term debt is also being placed against the Tax Payer. Is it the Derp State that bails out domestic and foreign corporations. Is the. Deep State operating the Exchange Stabilization Fund. Did the Deep State pass Citizens United without an appeal Avenue that allows special interest to buy politicians. Was it the Deep State that rigged the appointment of Judges. Was it the Deep State that filibusters or does block voting contrary to the interests of the people. I can go on but you probably quit before starting to read. The above are facts

          Nov 10, 2024 10:23 PM

          42 years………… You must have seen a lot……

            Nov 10, 2024 10:10 PM

            Yes …a lot of dedicated people who made an oath to the Constitution.

            DT: you forgot facts again

            Nov 10, 2024 10:18 PM

            Jerry, you always try to be the diplomat, but we know what you mean! LOL! DT

            Nov 11, 2024 11:55 PM

            Your “appeal to authority” argument is invalid and you should know that due to your age if not common sense. You are dead wrong not only regarding the deep state but also regarding the constitution and your perception that your crowd adheres to it much less respects it. The corporate media is not your friend and you should know that by now as well.

            Nov 11, 2024 11:03 PM

            Matthew: I am surprised that you resort to attacking a poster with unsupported assertions.
            When preparing your elegant charts you rely on factual data …
            And yes, unlike technical charting that must rely on data sourced from the mainstream, much of my knowledge comes from working in the government system at the Stste and Federal Level and directly with all levels of Law Enforcement.
            Common sense would tell you that if a person does not want to be restrained by The Constitution and wants “all those” who have sworn loyalty to the Constitution not to be able to thwart his unconstitutional actions … he would make every effort to remove them from the process.
            Likely he would discredit the group through false rhetoric with no more support than “name calling and false conspiracy claims”. If successful in indiscriminately removing a large swath of capable and Constitutionally loyal employees, he could hire new unqualified employees who would swear loyalty to the dictator, not follow the law, be generally incompetent , thus undermining the Law and legal system.
            If there is a Deep State, it is a group of dedicated citizens that know what is right and what is wrong… and are prone to not to commit crimes because a Politician thinks he wants to do it.
            So if there is a Deep State it has to be proven … if it can be proven they are not acting in accordance with the Law or Constitution , they can be removed for cause “only after” hearings are held where the employee can defend against the “verified evidence”.
            That is a complete different situation than someone simply saying in a “Political Speech” … “there is a Deep State full of very bad people”. That falls way short of Due Process guaranteed under the Consitution. Proof must be provided that can be proven under a legal proceeding.
            The importance of “Due Process” becomes critical when it becomes apparent how the system and civil liberties are challenged without fact for achieving misdirected and unconstitutional agendas.
            Slinging bullshit in order to commit crimes by eliminating the experts in any particular Agency, is an unacceptable form of governing.
            (And no, I don’t know what data should be used to make technical charts if the data provided from recognized valid sources can not be trusted).

    Nov 10, 2024 10:21 AM

    Opportunities in Silver Explorers and Developers – Part 5

    Excelsior Prosperity w/ Shad Marquitz (11/10/2024)

    AbraSilver, Dolly Varden Silver, Blackrock Silver, Vizsla Silver, and Silver Tiger

    https://excelsiorprosperity.substack.com/p/opportunities-in-silver-explorers-c6a

    Nov 10, 2024 10:56 PM

    OOTB
    I will give you a couple of examples:
    I saw the Governor of Alabama convicted for corruption.
    I saw the Speaker of The House of Alabama convicted for corruption.
    I saw the District Attorney of a nearby county convicted of taking bribes and various forms of theft.
    Is that what DT calls deep state?
    Always ask him to back up his claims…then wait
    (Correction: 2 Alabama Governors) Guy Hunt and Don Seigelman

      BDC
      Nov 10, 2024 10:29 PM

      Crime is always with us,
      and most dangerous
      when it is cultish.

        Nov 10, 2024 10:45 PM

        … and violating a public trust.

    BDC
    Nov 11, 2024 11:21 AM

    Gold Money Soon:
    Trinary Monetary Method.