Doc’s Starting To Buy Uranium Stocks!
Doc joined me today to first outline why he is now starting to buy American based uranium companies. After the Section 232 announcement last week these stocks got hit hard. We also discuss the gold market and some of the techincals Doc continues to focus on.
Is There Finally Certainty For The Uranium Market? (Ep. 66)
Mike Alkin Show – Jul 15, 2019
“After 18 months (that felt like dog years), President Trump finally ruled on the Section 232 petition on U.S. uranium imports.”
“The president had wide latitude on his ruling… He could have chosen the Department of Commerce’s recommendations, come up with his own solution, or opted to do nothing at all.”
“The petitioners were hoping for a 25% quota… But the commander in chief rejected the petition—against the recommendation of Commerce Secretary Wilbur Ross.”
“As is often the case, the headlines don’t depict the whole story. ”
“Rather than imposing restrictive quotas, the president commissioned a working group to conduct a thorough review of the whole nuclear fuel cycle…”
“The group’s findings could have many implications for the uranium market. ”
“Arthur Hyde, a partner at Segra Resource Partners uranium fund, joins me today to discuss the implications of the Section 232 ruling and our thoughts on the working group.”
Nice to see US #Uranium Mining companies $URG $UEC up today and that $UUUU was mostly holding steady after the big selloff and rough Friday on the Section 232 news.
#Nuclear fuel companies in US like $LEU and $LTBR were also positive on the day.
Some of the uranium #AussieStocks like $BOE.AX $VMY.AX $ACB.AX $DYL.AX $TOE.AX were also peppy on the day when many Canadian U stocks sold off. Initially Canadian U stocks had surged on the Friday news.
Overall an interesting day of re-balancing and further digesting of the news and market perceptions in the Uranium and Nuclear Energy sector.
(UUUU) (EFR) Energy Fuels Commends President Trump on his Decision to Reinvigorate the Nuclear Fuel Supply Chain and Looks Forward to Working with the Trump Administration to Support the U.S. Uranium Mining Industry; First Land Cleanup Contract Signed
by @newswire on 15 Jul 2019
“Mark S. Chalmers, President and CEO of Energy Fuels stated: “In our Section 232 Petition, we asked for relief specific to the uranium mining industry. Not only did the President recognize the threat to national security and the need for relief for the uranium mining industry, he also acknowledged that the national security threat to the whole nuclear fuel cycle, not only uranium miners, must be studied and addressed, in order to revitalize the nuclear energy industry. We commend President Trump for recognizing the crucial importance of nuclear energy, the importance of the entire nuclear fuel supply chain and the importance of the domestic uranium mining industry as a key component of that chain. We are confident in our belief that the President will support actions to provide U.S. uranium miners with the relief they require in a plan that will revitalize the entire nuclear fuel cycle, nuclear power generation and that ensures national security. We are excited to stand ready to assist in any way we can in seeing the President’s plans brought to fruition.”
“Energy Fuels has more uranium production capacity than any other U.S. producer, and is uniquely positioned to play a significant role in any such plans. Energy Fuels owns and operates some of the lowest cost in situ recovery (“ISR”) and conventional uranium mines in the U.S. ”
(AEC) (ANLDF) Anfield Energy Engages BRS Engineering to Complete a PEA for the Charlie Uranium Project
(URG) (URE) Ur-Energy & (UUUU) (EFR) Energy Fuels Respond To Trump’s Uranium Sourcing Memo
Tanzeel Akhtar , Benzinga Staff Writer – July 15, 2019
“More than a year after Ur-Energy Inc. and Energy Fuels Inc jointly filed a petition under Section 232 of the Trade Expansion Act of 1962, President Donald Trump issued a memorandum on uranium imports. ”
“I agree with the Secretary that the United States uranium industry faces significant challenges in producing uranium domestically and that this is an issue of national security,” Trump said.
Ur-Energy CEO Jeffrey Klenda said in a Monday statement that, while the company hoped for a different outcome, it appreciates the White House’s consideration of the petition.
“We firmly believe a healthy nuclear fuel cycle, beginning with a sustainable uranium mining industry, is imperative to national security. As the Trump administration broadens its review of ways to revive and expand domestic uranium production, we will continue our work alongside the administration and with our customers to find solutions to correct the dysfunctional market. We will continue to examine all alternatives.”
Energy Fuels CEO Mark Chalmers said the companies asked for relief for the uranium mining industry in their petition.
“Not only did the president recognize the threat to national security and the need for relief for the uranium mining industry, he also acknowledged that the national security threat to the whole nuclear fuel cycle, not only uranium miners, must be studied and addressed, in order to revitalize the nuclear energy industry.”
UEC Comments on the Presidential Memoranda Issued on Uranium and Establishment of the U.S. Nuclear Fuel Working Group
July 15, 2019 – Uranium Energy Corp (NYSE American: UEC)
UEC Chairman and former U.S. Energy Secretary, Spencer Abraham commented: “The Trump Administration is to be commended for elevating the topic of U.S. uranium mining to the top of our national security and energy security agenda. At a time when we have bi-partisan support for the clean, baseload energy that nuclear power provides, it is crucial that the domestic supply chain is available for over 50% of our nation’s carbon free electricity generation. We will certainly make ourselves available to assist the newly formed U.S. Nuclear Fuel Working Group in any way possible.”
https://www.uraniumenergy.com/news/releases/index.php?content_id=776
US Uranium Meltdown: Market Error Is Golden Opportunity
Lobo Tiggre – Tuesday July 16, 2019
Keith Neumeier:
Wow!! What a great drill hole from Brixton today. Stock up 80% on the news.
Good exploration results are still being rewarded.
(BBB) (BBBXF) Brixton Metals Drills 554.70m of 1.97 g/t AuEq, Including 135.96m of 1.35 g/t Au, 0.31% Cu, 133.62 g/t Ag or 5.00 g/t AuEq Including 6m of 3.56% Cu, 3.37 g/t Au, 257.77 g/t Ag at its Thorn Project
by @nasdaq on 15 Jul 2019
https://ceo.ca/@nasdaq/brixton-metals-drills-55470m-of-197-gt-aueq-including
Updated Corporate Presentation for Brixton Metals:
http://brixtonmetals.com/wp/wp-content/uploads/2019/06/BBB-JUNE-2019-1.pdf
Bitcoin.Black Remote Viewing Stunning Results
I get “report unavailable”
Nice mention of Equinox Gold (EQX) on Kitco
by @tibutch on 15 Jul 2019
“In the junior producers’ space, the bank said that it likes Equinox Gold (TSX.V: EQX), increasing its price target to $1.85 a share.”
“Equinox has transitioned from developer to multi-asset producer, with the acquisition of Mesquite in 2018 followed by commercial production at Aurizona announced on July 1, 2019,” the analysts said. “We continue to expect a re-rate in 2019 as the company improves its production profile, a trend that should continue into 2020. The scarcity of quality, mid-tier, multi-asset producers creates a niche market for Equinox to target.”
https://ceo.ca/@tibutch/nice-mention-of-equinox-gold-eqx-on-kitco
Great info . inside the article………..jmo………..thanks…..
Where the Road to Investment Success Begins with Rick Rule
by @Leni on 15 Jul 2019
https://ceo.ca/@leni/where-the-road-to-investment-success-begins-with-rick-rule
@Goldfinger – “Want to see what 17,000 grams/tonne silver looks like?”
“this also has 10% lead 8% zinc and 1 gram/tonne gold. At Alexco core shack in Keno Hill #Yukon. $AXR $AXU”
http://cdn.ceo.ca/1eiq23a-9B624B24-4EF7-4429-9061-5B38E227278B.jpeg
Gotta love it…
http://tocqueville.com/wp-content/uploads/2019/07/2Q19gold4-1024×650.png
Silver bears won’t know what hit’em just as stock bears didn’t almost 40 years ago.
Found this at 321gold…
http://tocqueville.com/tocqueville-gold-strategy-second-quarter-2019-investor-letter/
Gold prices settle at nearly two-week peak
July 15, 2019 – MarketWatch By Myra P. Saefong & William Watts
https://www.marketwatch.com/story/gold-edges-higher-to-start-week-2019-07-15
T-Commodity @TCommodity
Gold remains a buy on dips (chart via BOFA)
Doc, I’d rather buy NSRPF than uranium. I’m not buying NGD up here but am holding what I bought @ .78 as it could still be a 20 bagger if gold goes to 5K or 8K and Blackwater opens. Renaud Adams is a good CEO.
https://www.zerohedge.com/news/2019-07-15/global-debt-hits-246-trillion-320-gdp-developing-debt-hit-all-time-high
GLOBAL DEBT………….HUGE………..320% of GDP…..
BB, as mentioned earlier, I’ll take a position in NSRPF soon. It has a little to fall yet,however, I don’t want to get too cute.
Doc – I don’t see NSRPF dropping below the May low and it looks to me like the breakout will happen in early August. Do you see the same thing?
Next stop for SILJ is $10+
https://stockcharts.com/h-sc/ui?s=SILJ&p=D&yr=1&mn=8&dy=0&id=p05033480635&a=639264264
Here’s 10 years of XAU that I first posted last September:
https://stockcharts.com/h-sc/ui?s=%24XAU&p=W&yr=11&mn=3&dy=0&id=p17402156814&a=618520531
Priced in Alexco, Impact is a weekly chart “buy” and is up 37% in the last month:
https://stockcharts.com/h-sc/ui?s=IPT.V%3AAXR.TO&p=W&yr=3&mn=11&dy=0&id=p81568051905&a=601238586
Interesting chart of AXR and IPT, and it does look like Impact has the edge technically for the short to medium term.
Personally I own both companies for different fundamental reasons, and like their projects, exploration upside potential, and both have solid operational teams.
The real action in Alexco will be in Q4 of this year when they finally announce their production decision. They should be rather peppy after that, and moving into the first half of 2020 as they ramp up into commercial production next year.
I expect IPT to be more torqued to changes in the metals price in the medium term, but both are solid silver horses to ride in the coming move in the sector.
SILJ has been trapped in a pitchfork for years:
https://stockcharts.com/h-sc/ui?s=SILJ&p=D&yr=1&mn=11&dy=0&id=p30756455286&a=569140876
Word of caution…….
http://www.321gold.com/editorials/taschler/taschler071619.pdf
Jerry, I am not concerned about this breakout failing but it is reasonable to worry about the possibility of a larger pullback than any of us wants right now.
Matthew…..again, I would agree…..
Anyone on the board have any thoughts on the chart of FXI (iShares China Large-Cap ETF)? Looks like might be a cup and handle pattern. It fell below a 50% retracement although not by much which I believe is a key component to the chart pattern. It is above the 50 and 200 week moving averages although it looks like it might need some more time to consolidate. Monthly looks about the same as the weekly although it looks like there is a much larger cup and handle in play going back to 2015. Seems like a breakout might be several months away yet.
Brixton pushed through the February peak this morning. Impressive.
The SLV:GLD bullish hammers that I pointed out recently were correct in “forecasting” the strength we’re seeing. The ratio is up sharply this week…
https://stockcharts.com/h-sc/ui?s=SLV%3AGLD&p=D&yr=1&mn=3&dy=0&id=p94306704833&a=672678565
Impact Silver’s recent strength also foreshadowed silver’s strength.
SLV:GLD:UUP weekly:
https://stockcharts.com/h-sc/ui?s=SLV%3AGLD%3AUUP&p=W&yr=3&mn=9&dy=0&id=p16046085326&a=676464248
This looks like a great time to trim some large cap miners and buy some tiny caps:
https://stockcharts.com/h-sc/ui?s=%24GDM&p=D&yr=1&mn=2&dy=0&id=p87530605005&a=673663556
I just bought another $10K of PSLV@5.78
I know the miners have more leverage but when silver goes to $200/oz I’ll cry all the way to the bank.
There’s nothing wrong with that. Silver is a lot safer than any miner.
Well gold miners should go up about 3 times as fast as gold does, just like silver bullion, but with silver bullion I don’t have to worry about President Obrador or crooked or stupid managements. Of course I have lots of miners too to cover all the bases.
I like a lot, thank´s
Next resistance for a breather?
It reached some Schiff fork resistance today at .38 so the breather could already be underway but the bigger picture looks so good that I doubt it will last long.
https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=0&mn=9&dy=9&id=p62355121818&a=661530517
The next significant resistance is well above the current level:
https://stockcharts.com/h-sc/ui?s=IPT.V&p=W&yr=3&mn=11&dy=0&id=p60716202204&a=676659698
Here’s a rising resistance that is currently in the .48 area:
https://stockcharts.com/h-sc/ui?s=IPT.V&p=W&yr=4&mn=0&dy=9&id=p26676443365&a=676382921
Thank’s Matthew,
👍 Great editorial. Thanks for all your efforts 😎
The odds are good that the gold-silver ratio has topped for a very long time.
https://stockcharts.com/h-sc/ui?s=GLD%3ASLV&p=D&yr=1&mn=1&dy=0&id=p73412605255&a=577228753
Hey Matthew – Do you have any updated thoughts on USAS? Looks like it is starting the next leg higher.
It looks great. That quick MACD re-buy (and other indicators) shows underlying strength and the possibility of significant additional gains…
https://stockcharts.com/h-sc/ui?s=USAS&p=D&yr=1&mn=0&dy=9&id=p74839602628&a=676667084
A move to 2.92 would not surprise me.
https://stockcharts.com/h-sc/ui?s=USAS&p=D&yr=1&mn=1&dy=0&id=p43957343980&a=557186847
I do not currently own it, btw.
The weekly chart looks powerful so I would not be too concerned about that overbought RSI reading. The real bull is here so it can get much more overbought and stay that way for longer than most expect. Of course that’s “can” not “will”…
https://stockcharts.com/h-sc/ui?s=USAS&p=W&yr=3&mn=7&dy=0&id=p15072942831&a=613602175
Thanks for the update Matthew. Next to IPT it is my second largest silver miner holding. I took a scalp of ISVLF today to invest some more in Kootenay. I wanted to catch it before it got away from me like Brixton did. I might also pick up more Brixton if it pulls back some more.
So you’re the one! I’ve also been a buyer of Kootenay lately, including today.
Someone is showing an interest in it. Volume spike today seems like it is getting ready to blast off.
Speaking of spiking volume, take a gander at AG:
https://stockcharts.com/h-sc/ui?s=AG&p=D&yr=1&mn=3&dy=0&id=p7151263651c&a=578542926
AG remained massively weekly overbought for 5 months in 2016(!)…
https://stockcharts.com/h-sc/ui?s=AG&p=W&yr=4&mn=2&dy=0&id=p73753307845&a=593668922
Unfortunately I don’t own any. I owned for a brief time in 2016, but sold out. Never got back in, but I know there assets and management are great. Let me know if there is an opportunity you see in the future to get in.
Kootenay will move when the market is convinced that silver is going higher.
https://stockcharts.com/h-sc/ui?s=KTN.V&p=W&yr=8&mn=3&dy=0&id=p17485020266&a=670511036
I agree that it could consolidate a bit longer, but I don’t see it going much if any lower. If it does I plan to buy some more.
I agree. It’s probably not going lower.
Dolly Varden is looking pretty interesting too so I bought some more of that name as well today. So many to choose from.
Doc, I get where you are coming from with the chart of uranium. But uranium will not stagnate here, it’s up a dollar today. Cameco needs to buy over 10M lbs. this year still. Utilities are at inventories of about 2-2.5 years. Many utilities have uncovered supply and were waiting for S232 to end. Now that it has ended they are going to come back in a gigantic rush. When they buy these contracts they are for about 2 years out (2021), they can’t take their time here because they don’t have the inventory to wait much longer.