Stick with Our Fab Four for Continued Outperformance

Source: Fincom Investment Partners for Streetwise Reports 01/11/2018 While miners have bounced off their December lows, what is in store for 2018? Fincom Investment Partners profiles a handful of companies it believes have an opportunity to double in 2018. December’s annual tax ritual provided a number of opportunities. While miners have bounced off the December lows, the year is just getting started, so now what? Going forward, we prefer shares offering fundamental value improvement, which may increase share price in both a rising gold environment, and, if it so happens, another flat or soft year. These stocks have an opportunity to double in 2018 even if the mining sector remains flat. Silvercorp Metals Inc. (SVM:TSX; SVM:NYSE). Bet you did not know that in the last (available) quarter (Q317), Silvercorp earned more money than Helca, Coeur Mining, First Majestic Silver, SSR (formerly Silver Standard), Tahoe, Endeavour Silver and Klondex COMBINED. A Canadian company, its high-grade silver mines in China produce a strong zinc/lead by-product, thus earnings have been excellent. We have the company at about an 8X current year PE. With $100 million in cash and no debt, SVM’s $438 million market cap easily makes it the best value in silver mining. In terms of China operations, by now, all skeptical doubts are finished. We believe there is less risk as a tax-paying operator in China, than about anywhere in Latin America, Africa, etc. Following the company for several years now, we have found management solid and conservative. We cannot say … Continue reading

Optimum Entry Point for Gold and Silver Stocks

Source: Clive Maund for Streetwise Reports 01/11/2018 Technical analyst Clive Maund discusses why he believes a massive new sector bull market is about to begin in gold and silver. When you are following the markets closely day after day it can be easy to lose sight of the big picture. So with the “everything bubble” getting closer to bursting, leading to universal mess and mayhem, there could not be a better time to look at the long-term picture for gold and silver, in order to see whether they are going to salute and go down with the ship, as they did in 2008, or constitute a lifeboat and a profitable means of escape for more fortunate investors. I am therefore pleased to be able to report that it will almost certainly be the latter, for reasons that we will now elucidate on the respective long-term charts for gold, then silver. On gold’s latest 18-year chart—a time period selected to show the prior 2000’s bull market in its entirety—we can readily see that a potential Head-and-Shoulders bottom has been forming since 2013, and the probability that this is the genuine article, the “real deal” is vastly improved by the dramatic increase in upside volume over the past two years as this base pattern has approached completion, which has driven volume indicators strongly higher over the past year, such that, rather incredibly, the Accum-Distrib line is already close to making new highs, which is a very bullish indication indeed. It’s pretty much … Continue reading

Brownfield Leverage and Blue-Sky Greenfield Zinc Exploration in British Columbia

Source: The Critical Investor for Streetwise Reports 01/09/2018 As zinc continues to rise, The Critical Investor profiles an explorer consolidating claims in southeastern British Columbia. Kootenay Arc; Jersey Emerald Project 1. Introduction Every now and then certain junior mining companies succeed in consolidating a large group of claims or even multiple projects on very favorable terms, often creating very interesting continuous land packages with ongoing areas of exploration potential, greenfield and/or brownfield. This kind of transactions are usually out of the realm of larger, well-known parties, as prices shoot up the second their involvement becomes apparent. One of these junior mining companies is Margaux Resources Ltd. (MRL:TSX.V), a relatively new player on the zinc front. The company consolidated a lot of land and historic mines in an area called the Kootenay Arc, and set out to look not only for zinc, but also for tungsten and gold. This year has already seen quite a bit of exploration activities on various projects, so it is time to discuss the current status of the company and its projects. All presented tables are my own material, unless stated otherwise. All pictures are company material, unless stated otherwise. All currencies are in U.S. dollars, unless stated otherwise. 2. The Company Margaux Resources is a mineral acquisition and exploration company focused on zinc, gold and tungsten resources in the richly mineralized Kootenay Arc region of southeastern British Columbia (B.C.), Canada. The company has quietly consolidated a portfolio of previously producing properties in the last three … Continue reading

Gold Project Could Be One of the 'Top Five Producing Mines in Australia'

Source: Streetwise Reports 01/09/2018 As this gold explorer continues to test its Australian property, an updated preliminary feasibility study is expected this quarter. Vista Gold Corp.’s (VGZ:NYSE.MKT; VGZ:TSX) principal asset is the Mt. Todd gold project in Australia’s Northern Territory, where the company is undertaking metallurgical testing. At the end of November, Vista Gold announced that its test work has led to improved gold recoveries; automated sorting and a two-stage grinding circuit would “enable the project to achieve a finer grind size, higher gold recoveries/higher gold production, and lower processing costs with no material increase in project capital.” Heiko Ihle, an analyst with H.C. Wainwright & Co., noted in a Nov. 28 update on Vista Gold that his firm expects “a reduction in grinding, leaching, and tailings handling costs due to lower volume of material processed, and reiterate[s] the potential for these changes to reduce the above costs by around 10%.” “We expect the improvement in recoveries to translate to greater production and profitability at Mt Todd,” Ihle wrote. The company is now updating the preliminary feasibility study (PFS), which it plans to release this quarter. “We continue to expect an updated PFS for Mt Todd to be completed in 1Q18 and expect the study to reflect a project that can provide value to shareholders at the current gold price, rather than a potentially higher price in the future,” Ihle noted. Fund manager Adrian Day of Adrian Day Asset Management, wrote in Global Analyst on Nov. 20 that “the updated … Continue reading

Getting Bullish on Gold

Source: Rudi Fronk and Jim Anthony for Streetwise Reports 01/08/2018 Rudi Fronk and Jim Anthony, cofounders of Seabridge Gold, discuss gold’s recent moves and potential signs of a bull market. Gold is up nine of the last 12 Januaries with an average gain of over 4%, and the trend has continued in 2018 with gold reaching an intraday high of $1,327 so far this year. From December 19 of last year, gold rose 10 trading days in a row. Is this another rally destined to disappoint investors or the resumption of the gold bull market? To make a reliable bullish case, gold must first break decisively over $1,360 (the 2017 high) and then $1,375 (the 2016 high). So, the question can’t be answered yet. But there are some encouraging signs. Gold posted a 14% gain in 2017, its best annual increase since 2010. In mid-December 2015, gold bottomed at $1,051 per ounce. In mid-December 2016, it bottomed at $1,128 per ounce. For 2017, the bottom was on January 3 at $1,162. That’s a trend of “higher lows,” which is a solid indicator of a turn in the market. Breaking out above the July 2016 high of about $1,370 per ounce would generate a “higher high,” a strong sign to us that gold is in a new long-term uptrend. Gold’s long-term moving averages are in bullish alignment for the first time since 2012. The last time the alignment structure flipped to bullish was in 2002, which confirmed the beginning of a … Continue reading

Jack Chan's Weekly Precious Metals Update

Source: Jack Chan for Streetwise Reports 01/08/2018 Technical analyst Jack Chan charts the latest movements in the gold and silver markets, noting a falling dollar is supportive for metal prices. Our proprietary cycle indicator is up. Gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term. Gold sector is on a short-term buy signal. Short-term signals can last for days and weeks, and are more suitable for traders. Speculation is in bull market values. USD: a falling dollar is supportive for metal prices. Silver is on a long-term buy signal. SLV is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders. Speculative longs are bouncing back sharply from the lowest level in years. Summary Precious metals sector is on major buy signal. Cycle is up, suggesting that the multi-month correction is now complete. COT data is supportive for overall higher metal prices. We are holding gold related ETFs for long-term gain. Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold … Continue reading

A Top Lithium Pick for a Red-Hot Market

Source: Ron Struthers for Streetwise Reports 01/08/2018 With lithium remaining a hot commodity and EV sales expected to grow exponentially, Ron Struthers of Struthers’ Resource Stock Report profiles his top lithium stock. The lithium/graphite and cobalt space was one of the hottest sectors in 2017, along with marijuana and block chain technology. The lithium ion battery (LIB) for electric cars (EVs) and grid storage is coming of age and the technology has reached the acceptance level and is now headed for its strongest growth phase in the typical “S curve” of innovation. There is going to be a lot of new lithium, graphite and cobalt mines found and developed in the next few years and those that are successful will make a lot of money for their shareholders. I seen it explained this way that I thought was quite good: We are in a generational shift 2 to 7,000: 2 is the number of the batteries in your father’s remote control, more than 7,000 is the number of lithium batteries in Tesla Model S. It takes 63 kg of LCE (Lithium Carbonate Equivalent) to build a Tesla Model S 70 kWh battery. This new technology wave in the auto industry is going to create huge demand for a handful of different metals, in particular for the LIBs. This next chart from Bloomberg shows the projected demand and makes today’s consumption of these metals minuscule. All of us here in North America hear about Tesla, but it is just the tip … Continue reading

Investment Opportunities with Stock Warrants

January 6, 2018 By: Dudley Pierce Baker Founder – Editor Common Stock Warrants Finding investment opportunities is an on going process and keeping abreast of the news and new offerings is a time consuming process. But that is what we do. Sectors of significant interest to investors: Marijuana and Cannabis Resource companies – gold, silver, copper, royalty companies, etc. Banks and Financial Institutions Biotechnology Pharmaceuticals And many, many more…. There are stock warrants trading on hundred’s of companies, some of which you may be familiar, but many that you have probably never heard of. For example, have you heard of Canada Jetlines Ltd? This is a new airlines in Canada that has literally taken off and the shares and stock warrants soared to highs last week. The common shares which traded at a yearly low of C$0.17, hit a high of C$1.15 last week, a potential gain of 576%. The stock warrants which traded at a yearly low of C$0.02, hit a high of C$0.60 last week, a potential gain of 2,900%. The leverage factor is 5.03 to 1 which means the warrants outperformed the common shares by a factor of over 5 times. Another example which I highlighted last week was Aurora Cannabis and the stock warrants. Aurora Cannabis – How High Is High? In this case the leverage factor was 4.31 to 1, meaning the warrants outperformed the common shares by a factor of 4.3 times and the warrants gained 1,608%. My last example for you occurred in … Continue reading

Analysts Increase Target Prices on Cobalt Pure-Play

Source: Streetwise Reports 01/06/2018 With electric vehicle demand booming, cobalt is a hot commodity, rising about 130% in 2017. This TSX.V-listed company offers one of the few ways to gain pure-play exposure. Cobalt 27 Capital Corp. (KBLT:TSX.V; CBLLF:OTC; 27O:FSE) is one of the few avenues for pure-play investment exposure to cobalt, as the company holds an inventory of physical cobalt as well as streaming agreements. The company recently closed a bought-deal offering, selling 8.1 million common shares at CA$10.50 each for gross proceeds of approximately CA$85 million. The exercise of an overallotment option has brought the total gross proceeds to CA$97.8 million. The company is using those funds to purchase 822 metric tonnes of physical cobalt at an average price of US$36.28 per pound. These purchases bring Cobalt 27’s total inventory to about 2,982 metric tonnes of cobalt. Cobalt, an essential battery ingredient, has had a stellar year, rising about 130% in 2017, and demand is expected to continue to grow. Cormark Securities analyst MacMurray Whale gave the base case for cobalt in a Dec. 19 initiation report on Cobalt 27: “Cobalt demand is booming from rising EV adoption and need for cobalt in the current battery formulations. Production is constrained: 99% of cobalt is produced as a co-product, two-thirds comes from the politically turbulent DRC and 84% is processed in China. We expect total demand will rise to more than 300,000 t by 2025, driving prices higher.” He also noted that gaining exposure to cobalt is not easy, as … Continue reading

Melt-up, Up, and Away

Source: Michael J. Ballanger for Streetwise Reports 01/05/2018 Precious metals expert Michael Ballanger likes what he sees for gold in 2018’s first week of trading. While the moniker for this missive is “Gold and Gold Miners,” I just sit back in absolute AWE as the global equity investors (otherwise known as “Stock jockeys”) have decided that “cash is TRASH!” and despite a massive “miss” in the employment numbers this morning, within seconds of the release, the spin doctors manning the equity trading desks deemed that number “bullish” because it is less inflationary and may cause the Fed to “pause.” So dollar-yen rallies, the USD index has a minor pop, gold sells off, and stocks come out of the gate up another 0.25% with all of the bubblicious bravado of a high school quarterback getting his first win. The chart of the S&P shown below is a classic illustration of what occurs when global central banks open up the monetary spigots and flood the world financial markets with unchallenged credit and liability-free liquidity. It is this “inflationary spiral” that enhances “the replacement value of equities” and sends literally everything skyward. Since the two biggest collateral risks to the banks are real estate and stock buyback loans, it is no surprise that this tsunami of phony, counterfeit currency of all colors indiscriminate of flag has not only mitigated those risks but also floated the underlying collateral into the ozone layer. Don’t forget that even Ben Bernanke admitted that no one could predict … Continue reading