I'm Mad as Hell: Long Live Howard Beale

Source: Michael Ballanger for Streetwise Reports 11/04/2019 Sector expert dissects recent Fed and other government actions and discusses his recent precious metals trades. In the 1976 movie “Network,” British actor Peter Finch won an Academy Award for his stunning portrayal of news anchorman Howard Beale, whose on-air descent into insanity, prompted by the social and economic conditions of the times, is now legendary. The iconic scene where Beale, clad in a rumpled raincoat and with wet hair plastered to his head, goes on national TV and implores watchers to go to their windows and scream “I’m mad as hell and not going to take this anymore!” is one of the most awe-inspiring scenes in the history of filmmaking. Should you wish to watch the scene for yourselves, the link can be found here. You know, I must confess that there are days that are becoming all too frequent now, that I feel like a 2019 version of Howard Beale. I watched last Wednesday as Fed Chairman Jerome Powell stood in front of a room full of reporters and masterfully executed the Art of Obfuscation as he convinced the financial markets that $60 billion per month of paper money creation is a) not inflationary, b) not an emergency measure and c) in no way to be considered “quantitative easing” (QE). As if that alone was insufficient in sending me to the closest window, Friday at 8:30 EST, they trot out the BLS non-farm payroll numbers as an upside “beat” thanks largely … Continue reading

Jayant Bhandari: These Three Things Are Destabilizing the World

Source: Maurice Jackson for Streetwise Reports 11/02/2019 In conversations with Maurice Jackson of Proven and Probable, Jayant Bhandari offers his thoughts on geopolitical unrest in the Middle East, Latin America, and elsewhere, and how these issues affect the precious metals markets and the accumulation of wealth. Maurice: Joining us for a conversation is Jayant Bhandari, the founder of the world-renowned Capitalism & Morality, and a prominent, highly sought out advisor to institutional investors. We have a number of topics to address today, from geopolitics to unique buying opportunities in the natural resource space. Beginning with geopolitics, let’s begin in the Middle East. Syria has a number of events that are unfolding there at the moment. Jayant, you and I had a discussion offline prior to our interview, and you had a number of concerns regarding the turmoil in Syria, specifically with the U.S. expatriating their troops from there, and yesterday the U.S. confirmed that they have killed the leader of ISIS. What has you concerned about Syria right now? Jayant: I am actually extremely impressed with what Trump has been doing in the Middle East. He is reducing American influence and presence in the Middle East, which is exactly what you need to do. What you need to do is to let these people be forced into a situation where they talk with each other. It is not the job of Americans to sit in the Middle East and negotiate and arbitrate problems between these people. Now, here is the … Continue reading

Sandstorm Posts Record Q3 Revenue and Gold Equivalent Ounces Sold

Source: Streetwise Reports 10/31/2019 Shares of gold royalty firm Sandstorm Gold traded more than 9% higher today after reporting record revenue for Q3/19. Vancouver, Canada-based gold royalty company Sandstorm Gold Ltd. (SSL:TSX; SAND:AMEX), yesterday announced what it called record 2019 results for the third quarter ended September 30, 2019. The company advised that in Q3/19 it achieved record revenue of $25.8 million, a 49% increase over the $17.3 million reported in Q3/18. The firm also stated that it posted record attributable gold equivalent ounces sold of 17,289 oz., up 21% versus 14,314 oz. sold in Q3/18. Sandstorm advised that in Q3/19, the average cash cost per attributable gold equivalent ounce was $288 resulting in cash operating margins of $1,203 per oz., compared to $248 per oz. and $960 per oz. respectively in the corresponding 2018 quarter. The firm reported Net income of $6.2 million in Q3/19, compared to $2.1 million in Q3/18. The company advised that “Net income was higher when compared to the same period in 2018 driven by an increase in revenue and a $2.0 million increase in gains recognized on the revaluation of the company’s investments; whereby a gain of $2.1 million was recognized during the third quarter of 2019 largely driven by the change in fair value of the Americas Gold and Silver Corp. convertible debenture and Equinox Gold Corp. convertible debenture.” Sandstorm also updated its Full-Year 2019 outlook indicating that “based on the company’s existing royalties, attributable gold equivalent ounces sold for 2019 is forecasted … Continue reading

Calibre Buys Two Gold Mines from B2 Gold

Source: Bob Moriarty for Streetwise Reports 10/31/2019 Bob Moriarty of 321gold presents the investment thesis for this mining firm. If you are smart enough to remember how to fall off a bicycle, you qualify as wise enough to be buying shares in Calibre Mining Corp. (CXB:TSX.V; CXBMF:OTC.MKTS). It’s that easy. B2Gold Corp. (BTG:NYSE; BTO:TSX; B2G:NSX), run by Clive Johnson, is a $4 billion company. They had two gold mines in Nicaragua but have transitioned to mining in Africa and the Far East. Johnson is not above trying to maximize value for his shareholders, so when the decision was made to focus on larger mines in Africa, he looked around for a suitable junior to take over the existing production assets in Nicaragua. There was such a junior right in their own backyard and a deal was cut. Essentially B2 is selling the El Limon gold mine with a 500,000 TPA (tonnes per annum) mill with a partial Q4 guidance of 14,000–17,000 ounces with an AISC (all-in sustaining cost) of US$950–$990, and the La Libertad gold mine with a 2.2 million TPA mill with a partial Q4 guidance of 17,000¬–20,000 ounces, showing an AISC of $930–$960, for about US$100 million in cash and shares. The new owner of the two mines and a couple of extra projects with potential is named Calibre Mining, with a ten-year history of exploration in Nicaragua. B2 is ending up with US$40 million in crisp $100 bills, along with 29% of the shares of Calibre and … Continue reading

Operational Improvements Boost Yamana

Source: Adrian Day for Streetwise Reports 10/30/2019 Money manager Adrian Day updates developments at several resource companies, with one strong buy. Yamana Gold Inc. (YRI:TSX; AUY:NYSE; YAU:LSE) (3.65) has seen another quarter of improving operations, with earnings above expectations, mostly because of strength at El Penon. In the next quarter, expected improvement at Cerro Moro and Jacobina, should continue this trend. The company said it remains on track for its full-year guidance of just over 1 million ounces (gold equivalent). The doubling of the dividend—albeit to a yield still just barely over 1%—is nonetheless a sign of confidence from management. However, cash costs were higher than expected. The balance sheet has improved with the sale of the Chapada mine, with net debt now at $891 million. Cash and available liquidity—mostly the latter—stands at $850 million. The stock responded well to the latest quarterly results, up 8% on Friday. We see continued improvements ahead; we are holding for now. Argentina victory may yet boost Fortuna Fortuna Silver Mines Inc. (FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE) (3.18) is trading at a significant discount to other silver companies, almost entirely because of the Argentina risk. Its third mine in that country will boost cash flow by 50% when fully operational, and is on track for its first pour in the first quarter of 2020. Results at its existing two mines continue to be soft, emphasizing the importance of Lindero. . .and the Argentina risk. Production at San Jose in Mexico was down 12% on estimates, … Continue reading

From the Fed to the Field to New Orleans: Brien Lundin Dives Deep into the Metals Markets

Source: Maurice Jackson for Streetwise Reports 10/30/2019 In conversation with Brien Lundin of the Gold Newsletter and the organizer of the New Orleans Investment Conference, Maurice Jackson of Proven and Probable explores the geopolitical, financial, practical and social issues surrounding investment in the precious metals. Maurice Jackson: Joining us for conversation is Brien Lundin, the president of Jefferson Financial, and he is the host of the world’s greatest investment event—I’m speaking of the New Orleans Investment Conference. Brien Lundin: Great to be with you as always, Maurice. Maurice Jackson: Delighted to have you on today to discuss the current state of precious metals and some opportunities in the junior mining space. Mr. Lundin, what are your thoughts on the current precious metal prices right now? Brien Lundin: Well, gold is going through somewhat of a correction; I guess it’s safe to say it should be going lower. The technicals are actually a head-and-shoulders formation pointing toward the lower $1400s in terms of price. The fundamentals have moved from the investors being focused on the big monetary issues to them being focused on the daily parade of headlines. We haven’t really had those drivers that we had earlier in the summer and the price should be going lower, but it isn’t. We are going sideways basically now. We’ve had gold get hit by a number of headlines that should be bearish. We had a Brexit deal announced last week. We had a ceasefire in Syria announced, we had the makings of … Continue reading

Explorer with Fiji Gold Project Added to Investment Firm's Watch List

Source: Streetwise Reports 10/30/2019 The highlights of this Canadian company’s cornerstone asset are outlined in an Echelon Wealth Partners report. In an Oct. 23 research note, analyst Ryan Walker reported that his firm Echelon Wealth Partners added Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX) to its Watch List after meeting with the company’s management at the recent Precious Metals Summit. Lion One’s flagship asset is Tuvatu, the alkaline high-grade gold project on Fiji’s Viti Levu island. The current existing resource consists of diluted Indicated resources of 1.1 million tons at 8.46 grams per ton (8.46 g/t) gold, based on a 3 g/t cutoff grade. The Inferred resource totals 1.5 million tons at 9.7 g/t, or 468,000 ounces. “Importantly,” Walker pointed out, “about 80% of the existing resource is within just 200 meters (200m) of surface. Yet past drilling was done primarily within 300m from surface and only a small fraction went below 400m down. Accordingly, the Canadian exploration company, earlier this year, launched a four-hole drill program to test for deep feeders to Tuvatu’s existing high-grade resource. Also noteworthy is that a preliminary economic assessment of Tuvatu, completed in 2015, showed robust economics, noted Walker. The report outlined an underground mine producing a total of 352,931 ounces of 11.31 g/t gold over the first seven years. The payback period was estimated to be 1.1 years. This scenario would result in a post-tax net present value 5% of US$150 million and an internal rate of return (IRR) of 79% at a US$1,500 … Continue reading

2020 Outlook Strong for Canadian Gold Producer, Analyst Says

Source: Streetwise Reports 10/30/2019 The reasons behind this opinion are presented in a CIBC report. In an Oct. 24 research note, analyst Anita Soni reported that CIBC expects Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) “to deliver on growth in 2020, continue to generate strong free cash flow and potentially further increase its dividend.” This view, Soni explained, is based on the gold producer reporting an earnings per share (EPS) beat, increasing its dividend, re-generating free cash flow, increasing its 2019 production guidance for the second time and trimming its 2020 production guidance, all in Q3/19. Soni reviewed each contributing factor. Agnico Eagle reported an adjusted EPS for Q3/19 of $0.36, above CIBC’s $0.29 estimate and consensus’ $0.27 expectation. Strong production and revenues of more than $19 million along with lower depreciation led to the beat. Because in Q3/19 Agnico Eagle generated free cash flow again after a time of intensive capital outlay, the company boosted its quarterly dividend 40%, to $0.175 per share from $0.125, Soni highlighted. During that growth period, Agnico Eagle maintained a strong balance sheet. As for production, the gold company also surpassed expectations in Q3/19, achieving 477,000 ounces, noted Soni, against CIBC’s forecast of 463,000 ounces. Based on this and year-to-date performance, Agnico Eagle increased its full-year 2019 production guidance for the second time, to 1.77–1.78 million ounces (1.77–1.78 Moz). Contrarily, the producer cut its full-year 2020 production guidance due to “adverse weather conditions at Amaruq, which delayed dewatering and impacted development,” Soni explained. Agnico Eagle’s … Continue reading

PGE Projects in Brownfields of Montana and Yukon Raise Expectations for Junior Miner

Source: Maurice Jackson for Streetwise Reports 10/29/2019 Recent developments on several of this North American explorer’s prospects are discussed in an interview with Maurice Jackson of Proven and Probable. Maurice Jackson: Joining us today is Michael Rowley, president and CEO of Group Ten Metals Inc. (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE), which is known for platinum, palladium, nickel, copper and cobalt in the Stillwater district in Montana. Sir, we have more exciting news coming from Group Ten Metals’ flagship Stillwater West project, which is becoming recognized for both the scale and grade of its mineralization. Your current exploration and drilling campaign has been in progress for two months now, with numerous holes completed. But before we get to that, Mr. Rowley, please introduce Group Ten Metals and the opportunity the company presents to the market. Michael, I have a map displaying Group Ten Metals flagship Stillwater West project. I believe it’s paramount for [readers] to understand the strategic advantage Group Ten Metals has over many of its peers, and that is brownfields exploration, which is a term that the lay investor may not appreciate. How does Group Ten Metals’ brownfields exploration benefit current and prospective shareholders? Michael Rowley: The term brownfields means operating in a proven mining district, which is distinct from exploring a greenfields district, which has no existing mineral deposits or mines, and may be remote with no infrastructure. The Stillwater West project is a great example of a brownfields asset as it adjoins three operating mines that are among the … Continue reading

Appraisal Well 'Demonstrates Stable Natural Gas Production'

Source: Streetwise Reports 10/28/2019 The test results and next steps are provided in a Mackie Research Capital Corp. report. In an Oct. 21 research note, Mackie Research Capital Corp. analyst Bill Newman reported that Valeura Energy Inc. (VLE:TSX; PNWRF:OTCMKTS) completed the final test of the Inanli-1 appraisal well in Turkey, which, like the first three, showed stable natural gas production. Of the four tests of Inanli-1, the first, or deepest, zone had the “most encouraging” results, noted Newman. It had the highest average flow rate and a low, decreasing water rate. The other three tests flowed gas but more slowly than the first. The final test achieved a maximum sustained flow rate of 643,000 cubic feet per day at its deepest point. “Valeura remains optimistic that certain zones within the Inanli-1 well hold the potential for exploitation through horizontal drilling and potentially through comingled vertical completions,” relayed Newman. Valeura will begin testing the Devepinar-1 appraisal well, located 20 kilometers to the west of Inanli-1. The aim is to “better understand the lateral and vertical reservoir characteristic and hydrocarbon composition of its potential massive basin-centered natural gas accumulation (BCGA),” explained Newman. The analyst added that whereas the potential size of the BCGA is “massive,” further drilling and testing are needed to derisk the play and advance the project to the development phase. Accordingly, Mackie has a Speculative Buy rating and a CA$3.50 per share target price on Valeura, recently down from CA$5.75 per share and versus the CA$0.82 current share price. … Continue reading