What Is Chen Buying? Gold, Cobalt, Phosphate and Biotech. . .

Source: Chen Lin for Streetwise Reports 05/25/2017 With the market in flux, Chen Lin of the popular newsletter What Is Chen Buying?, What Is Chen Selling? is hedging his bets with investments in a variety of companies in different sectors. The market is taking one step back and two steps forward. The momentum is still carrying the market higher, though the internals started to show signs of weakness. The gold market is, in general, moving opposite to the market. If the market continues to rally, gold will come off. I believe gold will likely be range-bound in the near term, until the traditional gold run in the fall. There may be swing trading opportunities while we are waiting. I have been focusing on companies with strong balance sheets and good margins, like OceanaGold Corp. (OGC:TSX; OGC:ASX). Recently it bounced every time it got close to $CA4/share. The grand opening of Haile mine is schedule in mid-June. I have been hearing from investors, who have been chattering that the recent high-end real estate markets from New York to San Francisco have weakened significantly, likely due to the tight currency control in China. A lot of Chinese buyers were not able to get renminbi (RMB) out of China to complete their purchases. I also heard a cash crunch appeared in a few Chinese companies. LeTV is laying off 85% of its U.S. workforce this week, for example. LeTV has its own problems and can’t be used to generalize about other Chinese companies. … Continue reading

Castle Silver Should be Called Castle Cobalt

Source: Bob Moriarty for The Gold Report 05/23/2017 With the price of cobalt increasing, Bob Moriarty of 321 Gold profiles Castle Silver, which has turned its focus to cobalt. Lately I have read dozens of pieces speculating on the timing of a transition of automobiles from human-driven oil based combustion engine-powered to computer-controlled battery-powered machines. We know it will happen and the guesses as to timing are getting closer and closer. What should be obvious is that one of the most important technological advances in history is taking place right under our noses. When the gasoline-powered automobiles first came out few could recognize the impact they would have on the world. While Ford and Lincoln and Rolls made money, buggy-whip manufacturers went out of business. It’s called creative destruction. Ross Perot used to say that every business should burn itself down once a year or so. There is some truth to that; every business needs to reinvent itself on a regular basis. For now, lithium batteries seem to be the power source in the highest demand. That, too, shall change no doubt. The inputs to lithium batteries include naturally lithium, graphite and in most designs of batteries, cobalt. Castle Silver Resources Inc. (CSR:TSX.V) is the spawn of a company that used to be known as Gold Bullion Development, now known as Granada Gold Mine. In 2010 Gold Bullion Development made a significant discovery at the Granada Mine and that project became their primary focus. They spun off the Castle Silver … Continue reading

Don't Waver—Hard Asset Bull Market Still Intact

Source: The Gold Report 05/18/2017 The severity of the commodities bear market from 2011–2015 makes Matt Geiger, managing partner at MJG Capital, confident that the current hard asset bull market will last into 2019 and quite possibly longer. In this interview with The Gold Report, Geiger discusses commodities he is especially keen on right now and several companies that he expects to perform well. The Gold Report: Your firm, MJG Capital, invests exclusively in natural resources. What is your view of the precious metals market? Matt Geiger: We are still in a three- to five-year hard asset bull market that began in January 2016. I believe this due to the severity of the bear market we went through between 2011 and 2015. It was unrelenting. It was deep. We saw companies go out of business, turn the lights out. Management teams scuttled off into the marijuana or tech space. Only the credible players survived the four- to five-year culling period. As Rick Rule famously says, bear markets are the authors of bull markets and vice versa. The length and the severity of what we just underwent gives me the confidence that the upside over this next three- to five-year period is going to be quite spectacular. After a flying start to this year, the sharp pullback we’ve seen since mid-March should be viewed as a test of faith for long-term resource investors. These sharp pullbacks always happen in bull markets; those with the right temperament understand not to panic and … Continue reading

Energy's Day in the Sun Is Coming for Investors

Source: The Energy Report 05/18/2017 Market trends are aligning in energy’s favor, says Louis James, editor of International Speculator, and in this interview with The Energy Report, he discusses several segments of the market that he believes could see large gains. The Energy Report: Would you tell us about your thoughts on energy investing? Louis James: I’m seen as a metals and mining guy. Many people think I’m a goldbug. I think gold is a good thing to invest in and to speculate in right now, but it’s not the only thing. For example, I think oil’s day in the sun is coming. Ideally, you want to buy necessary things when they’re hated, when everybody thinks they are terrible investments. Gold has been range bound and it’s making people nervous. That’s a good thing for buyers. The same thing is true for oil. The Organization of the Petroleum Exporting Countries (OPEC) is trying to tighten production, but the shale producers keep swamping the market. There’s a war going on in the oil space. The failure to rise when they wanted it to has disappointed many energy investors. People are also worried that Tesla Motors Inc. (TSLA:NASDAQ) is going to eat oil’s lunch. All these electric cars are going to put OPEC out of business. Actually, I agree with that idea. I just don’t think it’s going to happen for 10, 20, maybe 30 years. Ten years may be way too fast. It’s going to take a long time for enough … Continue reading

LiCo Energy Metals Seeks Energy Metals

Source: Bob Moriarty for The Gold Report 05/15/2017 With solar energy on the ascendance, Bob Moriarty of 321 Energy discusses LiCo Energy Metals and its lithium and cobalt projects. Over the past couple of years, I have done a number of articles about solar power, voltage conversion and various forms of lithium batteries. Peak oil is very real and the world has done itself a terrible disservice by using oil to power mom-wagons getting 15 miles to the gallon. We have an almost unlimited amount of solar energy, literally for free and we should be using it instead and reserving the scarce and more valuable oil for better purposes. Considering the portable energy value in gasoline, it’s absurd that bottled water costs more money. An interesting company that just became an advertiser is named LiCo Energy Metals Inc. (LIC:TSX.V; WCTXF:OTCQB), interesting in that they are working on both lithium and cobalt. By 2020, 75% of all lithium batteries will contain cobalt and 40% of all lithium is used in the production of batteries. While most investors are familiar with the big run up in prices of both commodities, the actual amount used in a single battery is so small that it’s not an economic issue and the cost of battery storage has dropped by 50% in the past three years. Pundits in the energy business believe that with declining storage prices, solar and wind power will compete with oil by 2020, promising a giant increase in demand for both metals. … Continue reading

UGE International Shines as a Leader in Commercial Solar Market

Source: The Energy Report 05/03/2017 UGE International is solidifying its position as a leader in the commercial solar market. With the price of solar energy continuing to drop, UGE International Ltd. (UGE:TSX.V; UGEIF:OTC), with offices in New York, Toronto and the Philippines, has risen to the forefront of commercial and industrial solar providers. The company designs and installs solar power for commercial customers and then sells them the power; the client does not put up any up-front capital. Among UGE’s recent contracts are ones to install New York City’s first community solar project in Brooklyn, develop plans for microgrid systems in New York City, construct three solar projects for Philippine Spring Water Resources, and design and build a solar carport at The Sheridan College Institute of Technology and Advanced Learning in Ontario. “In the areas where we’ve traditionally operated, like the eastern U.S. or Ontario, the average client is paying around 14 cents per kilowatt hour, but we can sell you energy for 10 cents per kilowatt hour, and that cost is continuing to drop as the technology improves,” UGE’s CEO Nick Blitterswyk told Equedia Investment Research. In early April the company announced its acquisition of Carmanah Solar Power Corp. (CSPC), a Toronto-based provider of on-grid solar services in Canada. “CSPC has a long, proud history, and is a very complementary group that we are excited to welcome to the UGE team,” stated Blitterswyk. “Through this transaction we grow our market share, consolidate a competitor, and gain a strategic relationship … Continue reading

DOE Uranium Reduction Should Help Boost Market

Source: The Energy Report 05/02/2017 Department of Energy Secretary Rick Perry issued a determination that reduces the amount of uranium the department can transfer in 2017 and 2018; the reduction should give a boost to uranium producers. Every two years the Secretary of Energy is required to determine the amount of uranium allowed to be transferred to support the clean-up work at the Portsmouth Gaseous Diffusion Plant in Ohio. On April 26, Secretary of Energy Rick Perry released a determination to permit transfers of 1,200 metric tons of uranium (1,200 MTU) per year, down from 1,600 MTU. According to the Department of Energy, the agency “has been transferring excess uranium in exchange for services at the Portsmouth site for several years, and current law requires that a new Secretarial Determination be made every two years to assess whether future planned transfers would have an adverse material impact on the domestic uranium industries. The last Secretarial Determination for uranium transfers in support of this clean-up work was issued on May 1, 2015.” Rob Chang, an analyst with Cantor Fitzgerald, wrote on May 1 that this development is “positive to the uranium sector as it reduces the amount of uranium that was being dispersed into the market by the U.S. Department of Energy.” Chang noted that the stipulated maximums are “800 MTU of UF6 for the remainder of 2017 and 1,200 MTU for 2018. . .this translates into about 2M lbs and 3.1 M lbs of U3O8 equivalent for those years.” Chang … Continue reading

NexGen Drill Results Continue Expansion

Source: The Energy Report 04/20/2017 Drill results from NexGen Energy’s A3 Zone of the Arrow project have significantly expanded the zone to the northeast and have discovered massive pitchblende. NexGen Energy Ltd. (NXE:TSX; NXGEF:OTCQX) released results from 18 holes from its winter drill program at the Rook I property in Canada’s Athabasca Basin in Saskatchewan. According to the company, hole AR-17-136c2 is marked by “dense accumulations of massive to semi-massive pitchblende mineralization and is the strongest zone of mineralization encountered in the A3 shear to date. This newly discovered area is open to the northeast.” Garrett Ainsworth, NexGen’s vice-president of exploration and development, stated, “Drilling has been very successful in significantly expanding mineralization at Arrow on several fronts. The discovery of massive to semi-massive pitchblende mineralization encountered in hole AR-17-136c2 in the A3 shear looks identical to that found in the A2 Sub-Zone.” The A2 shear zone also shows expansion. Step-out drilling 200 meters northeast of existing drilling has intersected “39.0 m of total composite mineralization including 1.65 m of total composite off-scale radioactivity.” A drill hole 255 meters northeast has intersected “18.5 m of total composite mineralization including 1.6 m of total composite off-scale radioactivity.” On the A2 shear, Ainsworth said, “Further step outs into the northeast gap of the A2 shear have returned additional high grade intervals, where we expect mineralization to continue further northeast and down-dip to drill hole AR-15-50. Scissor drill holes stepping out and within the A2 and A3 High Grade Domains continues to exceed … Continue reading

Jack Chan on What Bullish Sentiment Means for Oil Prices

Source: Jack Chan for The Energy Report 04/15/2017 Technical analyst Jack Chan charts a reversal in the oil markets and outlines his strategy. $OSX is on a major buy signal, which can last for months and years. Speculative sentiment, according to open interests in the Commitment of Traders report, suggests that current sentiment is too bullish to support overall higher prices. What appeared to be a breakout this week was promptly reversed, thus resulting in a trend that is well established on the downside. SummaryThe energy sector is on a major buy signal. A correction is in progress. We have taken profits from our long positions and shall now wait for the correction to complete. 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 bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011. Want to read more Energy Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles with industry analysts and commentators, visit our Streetwise Articles page. Disclosure: 1) Statements … Continue reading

DNI Delivers Profitable Graphite

Source: Bob Moriarty for The Gold Report 04/13/2017 For Bob Moriarty of 321 Gold, the boom in demand for lithium ion batteries also means a boom in demand for graphite, and he is placing his bets on a junior he believes has nothing but blue sky ahead. A lithium ion battery is no more lithium than 6 k gold is really gold. Regulations require gold be the major component of jewelry to be called gold. 6 k gold is really copper and silver, not gold. Same same with batteries, a lithium battery increases the demand for graphite a lot more than it does for lithium. What is called a lithium ion battery contains 10–20 times more graphite than lithium. So a boom in lithium battery requirement is really a boom in graphite demand. Maybe we should start calling them graphite batteries with a little bit of lithium? But both the demand and price of graphite have shot up in recent years with the increase in demand for battery storage. A couple of years ago there were probably seventy-five Canadian juniors all claiming to be the next big thing in graphite. Alas, cold hard economics stopped most of them in their tracks. Canada has some great hard rock graphite projects but they all require a lot of money to get into production. With China being the world’s biggest supplier of graphite, they are quite willing to dump graphite at a moment’s notice. Those who fund mining projects want stable prices more … Continue reading