Coverage Initiated on Senior Australian Gold Miner, a 'Best-in-Class Mining Company'

Source: Streetwise Reports 12/13/2018 A BMO Capital Markets report summarized the investment thesis for this company. In a Dec. 7 research note, analyst Andrew Kaip reported BMO Capital Markets initiated coverage on Newcrest Mining Ltd. (NCM:ASX) with a Market Perform rating and an AU$23 per share target price. The stock is currently trading at around AU$20.67 per share. “Newcrest meets BMO’s criteria for a best-in-class mining company,” Kaip noted, with “strong execution and above average outlook in addition to peer-leading returns since restructuring began four years ago and industry-leading asset base and reserve life.” Company risks include concentration of assets, decreasing gold production at Cadia as of 2020 and heightened jurisdictional risk with Ecuador exposure and surrounding development of Wafi-Golpu, the joint venture project in Papua New Guinea. In light of these issues, Newcrest is “reasonably valued,” Kaip noted. The company could trade at a premium valuation, but that would require it to add to its asset portfolio to increase production and lower jurisdictional risk. Sign up for our FREE newsletter at: Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. 2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange … Continue reading

Explorer Wraps Up 'Significant Season' in British Columbia's Golden Triangle

Source: Streetwise Reports 12/13/2018 Canadian gold resource company wraps up 2018 with drill results that extend the mineralization found at its project in British Columbia’s Golden Triangle. Aben Resources Ltd. (ABN:TSX.V; ABNAF:OTCQB), a Canadian gold resource company, completed its 2018 drilling program in British Columbia’s Golden Triangle. Management released an update on December 13 providing the final results from its 2018 drill program at its 100%-held 23,000-hectare Forrest Kerr Gold Project, located in the heart of British Columbia’s Golden Triangle. This follows a series of announcements on November 19, October 16, August 23 and August 9, releasing drill results at the project. Aben Resources had commenced the 2018 drilling program in June, noting the 2018 program will “encompass a 5000-meter diamond drilling program in approximately 18 holes with the potential for program expansion.” The program was subsequently expanded to 10,000 meters. Source: Aben Resources The Forrest Kerr Project is found in yellow in the image above. The initial focus of the 2018 drill program was to “expand the high-grade precious metal mineralization discovered in 2017 at the Boundary North Zone, located near the center of the Forrest Kerr Property.” In early August, Aben announced assays from the first 2018 drill holes. Hole FK18-10, “the first of eight holes that have been drilled thus far, has four separate high-grade zones with the best zone returning and interval of 38.7 g/t Au over 10.0m, including 62.4 g/t Au over 6.0m starting at 114 meters downhole.” August 2018 Forrest Kerr Drilling Highlights Four … Continue reading

Five Companies to Consider in These Volatile Times

Source: Streetwise Reports 12/13/2018 Despite turbulence in the markets, investors should not be pessimistic because there are plenty of good markets to allocate to, posits Samuel Pelaez, chief investment officer and portfolio manager with Galileo Global Equity Advisors, who discusses trends in the markets and companies he believes are at attractive entry points right now. Streetwise Reports: Oil has been declining over the last two months or so. Would you talk about some of the factors behind this decline? Sam Pelaez: We can split the most interesting factors between, on one hand, the demand side, including the macroeconomy, the Purchasing Managers Indexes (PMIs) and the slowdown in emerging markets and in China. The other would be the supply side. I think it’s a convergence of those two concepts that’s caused some of this most recent weakness. On the demand side, the PMIs are one of the factors we like to look at the most because they give some predictability as to what may come next for resources. The PMI in China particularly has come down all the way to 50 points. The 50 line is the line between expansion and contraction. We are not in a contraction in any of the major economies, but we’ve lost that big tailwind and momentum that we had last year and earlier this year with PMIs in the high-50s. So, naturally, that has a very high correlation with demand for crude and we’re seeing that slowdown on that side. On the supply side, since … Continue reading

Mining Company Boasts 'Good Deposit Moving Quickly Toward Development'

Source: Streetwise Reports 12/13/2018 An iA Securities note reviewed the latest news about drill results and financings for this firm’s Canadian project. In a Dec. 6 research note, analyst George Topping reported that Barkerville Gold Mines Ltd. (BGM:TSX.V) announced “more high-grade hits” at its Cariboo project’s Cow Mountain, however, recent financings have been dilutive to the share price. As such, iA Securities lowered its target price on the Buy-rated company to CA$1.05 per share from CA$1.40. Barkerville is currently trading at around CA$0.34 a share. Topping reviewed results from the 63,000-meter (63,000m) drill program at Cow Mountain. Infill drill holes returned averages of 14.1 grams per ton (14.1 g/t) gold over 1.3m beginning 180m deep. “Today’s results bring the overall raw average at Cow Mountain to date to 11 g/t Au over 1.4m at a depth of 218m before dilution ( about 6.5–7 g/t post mining dilution),” Topping indicated. As for specific assays, one hole, CM-18-124, demonstrated 10.5 g/t gold over 7.8m starting at 209m down. This was down dip of a prior hole, CM-18-034, that showed 9.3 g/t gold over 2.7m. A second highlight hole, CM-18-128, intersected 24.1 g/t gold over 6.5m beginning at a 94m depth. Topping explained the results also exhibit continuity of high-grade mineralization at Cow Mountain in the quartz veins and extensions down dip and down plunge, with vein corridors remaining open. “Continued infill drilling and a higher cut-off grade (4 g/t) should push the resource to a profitable roughly 7 g/t,” Topping noted. The … Continue reading

Gold Company Advances Yukon Project with Resource Update, Construction Progress

Source: Streetwise Reports 12/11/2018 The mine remains on schedule for first gold delivery in the second half of 2019. Victoria Gold Corp. (VIT:TSX.V) has recently provided two updates on its Canadian property: one on the Eagle mineral resource and another on construction work at the project. According to a news release, the updated mineral resource at Eagle encompasses results from 58 drill holes and core holes, all done after the 2016 feasibility study (FS). “The additional drilling at Eagle has converted Inferred ounces to Indicated ounces, increased overall Measured and Indicated (M&I) ounces and maintained grade,” President and CEO John McConnell said. Specifically, the new Eagle estimate reflects 450,000, or 12.4%, more M&I gold ounces than specified in the FS. Also, the M&I resource grade is 2.4% higher, consistent with the grade in the prior FS. Resources in the Inferred category grew by 204,631 ounces. As for construction progress at the Eagle mine, it is 60% complete, Victoria Gold reported in a different news release. The target for first gold pour remains H2/19. Regarding individual components of the overall project, earthwork is mostly done. Concrete work, about 93% finished, should be finished by year-end. Structural steel work is 32% complete and moving at a solid pace. “Mechanical contractors have mobilized to site, and equipment is currently being installed in the gold recovery plant and the secondary and tertiary crushing facility,” noted the release. Those facilities are the focus of the current work. “The progress to date is impressive, and we … Continue reading

A Certain Perspective

Source: Michael J. Ballanger for Streetwise Reports 12/11/2018 Precious metals expert Michael Ballanger discusses the role of silver historically as well as recent moves in the market. Could there have ever been constructed four finer sentences strung together for the purpose of defining eight items related to money and social standing than the following? “Gold is the money of kings. Silver is the money of gentlemen. Barter is the money of peasants. And debt is the money of slaves.” While they sound impressive, and while I understand the reason for their construct, I actually take umbrage with the linkage of debt to slavery because slavery is a man-induced condition whereby one man is responsible for the enslavement of another while debt is often (but not always) a choice made by the individual. If that were a paragraph to which I could be allowed to impart my name, I would say “And debt is the money of sloth”, rather than “slave,” where those that opt for debt over savings wind up with an unfavourable outcome, one connoted by the original sin of “sloth.” Ergo, the alteration. . . “Debt is the money of sloth; barter is the money of peasants; silver is the money of gentlemen; but GOLD is the money of kings.” Now that sounds one helluva lot better because it disassociates the unfortunate “slave” from the term “debt” as one may safely assume that the laborers that built the Great Pyramids of Egypt didn’t owe anyone a dime while … Continue reading

A New Royalty Kid on the Block

Source: Adrian Day and John Newell for Streetwise Reports 12/11/2018 Fund manager Adrian Day discusses a young precious metals royalty company that has accomplished a lot in a short time. Technical analyst John Newell of Fieldhouse Capital Management provides charts. Streetwise Reports: Adrian Day Asset Management holds various precious metals royalty companies. Would you tell us about one young royalty company that your fund holds? Adrian Day: I like the royalty and streaming business model. It’s a low risk model both from the point of view from a company, and also from the point of view of the investor. With larger royalty companies, the advantages of being a royalty company really start to kick in when you get the diversification of royalty revenue streams. Although Metalla Royalty & Streaming Ltd. (MTA:TSX.V; EXCFF:OTCQB) has only been in business for two years, it has done an incredible job building the company in that length of time. In two years Metalla, without wasting money, has three revenue producing assets and about 14 assets in development and close to production. It is now at the point where it pays a dividend, 2.2% at today’s market, which is better than the S&P 500 and the vast majority of mining companies. To me, paying the dividend is a validation that it’s actually a real company. You can’t keep on paying a dividend for very long if you’re not actually earning money. Metalla buys royalties with both shares and cash. When it finds a royalty it wants … Continue reading

Bob Moriarty's Outlook on 2019

Source: Maurice Jackson for Streetwise Reports 12/11/2018 In a wide-ranging conversation, Bob Moriarty of 321 Gold discusses with Maurice Jackson of Proven and Probable geopolitics, economics, Bitcoin, precious metals and more. Maurice Jackson: Joining us for conversation is Bob Moriarty, the founder of 321 Gold and 321, and also the author of two of my personal favorite books, “The Art of Peace,” and “Nobody Knows Anything.” Mr. Moriarty, welcome to the show, sir. Bob Moriarty: It’s very good to talk to you today, and it’s very funny because those are two of my favorite books, too. Maurice: Sir, it’s always an honor to have you on our show. I would like to begin our discussion on your outlook for 2019. What are some topics of interest that we should focus on beginning with the political and economic landscape of the United States? Bob: You’ve got to separate those, and we can do that, from an economic point of view. The trade war is a total disaster. It can only do damage. It already has done substantial damage. I think the everything bubble has popped, and we could see some real fireworks in 2019! The stock market has either topped or will top soon. Gold and silver appear to be bottoming. Platinum is the lowest relative to gold it has ever been. So, I’m literally buying platinum and I’m buying silver right now. I think that we may have a few more weeks of tax loss silly selling in the … Continue reading

Gold Major 'Talks Future': Production, Capex and Costs

Source: Streetwise Reports 12/10/2018 BMO Capital Markets report reviewed the longer-term metrics. In a Dec. 6, 2018, research note, analyst Andrew Kaip reported that Newmont Mining Corp. (NEM:NYSE) gave updates on its 2019 and longer-term outlook, with next year’s numbers being generally “in line” with some variations. Production and capital requirements came in higher and all-in sustaining cost (AISC) lower than BMO’s forecasts. Kaip reviewed and compared the specific figures. For 2019 production, Newman guided to 5.2 million ounces (5.2 Moz), higher than BMO’s projected 5.1 Moz. For 2020 production, the miner forecasts 4.9 Moz and longer term, annually through 2023, 4.4–4.9 Moz. Kaip pointed out that “Newmont’s guidance does not include a number of development projects yet to be approved, which we include, such as Tanami phase two and the next phase of Long Canyon.” Taking those into account, BMO estimates the company can maintain about 5 Moz of production through 2023. As for capital requirements, the mining company guides to $1.07 billion for 2019. This compares to BMO’s projection of $965 million. “Relative to our estimates, Newmont’s capital is lower, but we include a number of growth projects that are currently in its pipeline,” noted Kaip. Management expects capex to drop to $730 million in 2020 and subsequently remain around $500–600 million through 2023. Newmont’s projected long-term sustaining capital requirement of $450–550 million is lower than BMO’s estimate, which is “closer to current spending levels,” Kaip indicated. Regarding costs, Newmont’s 2019 AISC projection is $935 per ounce ($935/oz) … Continue reading

On the Search for a Major Copper Porphyry in Peru

Source: Maurice Jackson for Streetwise Reports 12/10/2018 Bill Pincus, president and CEO of Miramont Resources, speaks with Maurice Jackson of Proven and Probable about his company’s latest exploration efforts in Peru. Maurice Jackson: Joining us for a conversation is Bill Pincus, the president, director and CEO of Miramont Resources Corp. (MONT:CSE; MRRMF:OTCQB), which is developing new opportunities in world-class mining districts. Bill, we have some great news to share with current and prospective shareholders, but before we begin, for first-time listeners, please share who is Miramont Resources, and what is the thesis you’re attempting to prove? Bill Pincus: Miramont Resources is a junior exploration company. We have two copper gold projects in Peru. Both are relatively early-stage prospects. One (Cerro Hermoso) is ready to drill, and one is getting near ready to drill, so what we’re looking for, what our thesis is, we’re looking for large bulk tonnage that has the potential to be very significant type ore deposits. Maurice Jackson: Bill, provide us with some historical context on the region in Peru where Miramont has its projects. Bill Pincus: We’re working in Southern Peru, which is known as one of the world’s great copper provinces. You have the giant mines of Toquepala, Cuajone, Cerro Verde, and Quellaveco is now being developed. These all produce hundreds of thousands of tons of copper metal annually. Our project, Lukkacha, is located right in this belt. We’re about 10 kilometers from one of the newer porphyry projects, by, I believe it’s Anglo American. … Continue reading