Golden Arrow Resources Buying Back 10% of Outstanding Shares, Exploration Temporarily Halted by Pandemic

Source: The Critical Investor for Streetwise Reports 03/27/2020 The Critical Investor takes a look at recent actions taken by this gold explorer. The coronavirus pandemic together with the Saudi Arabia-Russia oil production increase took its toll on the equity markets the last few weeks. The commodity markets in particular got hit too, as main end-user China got hit by a halt in manufacturing plants across the economy. Precious metals like gold rose initially, but after the virus spread globally it got sold off ruthlessly like any other asset class. Golden Arrow Resources Corp. (GRG:TSX.V; GARWF:OTCQB; G6A:FSE), as a gold explorer, didn’t come out completely unharmed either, as the following chart shows: Share price Golden Arrow Resources 1 year time frame; Source The drop in the share price for Golden Arrow is relatively comparable to that of SSR Mining, the company Golden Arrow holds roughly 1 million shares of (and which are the bulk of tangible assets at the moment): Share price SSR Mining 1 year time frame; Source At a current market capitalization of just C$14.3 million, Golden Arrow trades below the value of its SSR Mining holding, which attributes to C$16.2 million. Besides this, Golden Arrow has a modest cash position and its exploration assets among which is the promising Indiana gold project in Chile, so it is safe to say that the company has reached decent support levels technically and fundamentally speaking. Management decided this was the case as well, and came to the conclusion that … Continue reading

No, You Do Not Hear the Fat Lady Warming Up

Source: Bob Moriarty for Streetwise Reports 03/27/2020 Bob Moriarty of 321gold comments on where he believes the economy is heading. Those who never predicted a financial collapse in the first place are now edging closer to the swamp to dip their toes into the water. Now they are suggesting, perhaps we could have a recession.” Forget that. You cannot have every supply chain in the world chopped in two and have a recession. A depression was baked into the cake before the Corona popped out of the six-pack. The US government dumping a $6 trillion dollar bailout for their buddies that has more pork in it than the butt of a two-ton pig is the proverbial pissing up a rope. We are in a depression. The entire financial system, education system, medical system, political system, hell, the entire artifice needs a total reset. What do we get? More of the same. Well, if the government created the workspace for the depression by unlimited debt and financial chicanery, you are not going to fix it with more of the same. Americans are unlike any other people on earth. At heart they want to trust their government. Granted, the Democrats understand that the Republicans are at the heart of all evil. And Republicans know full well that the Democrats caused all of the problems in the country but both agree that if only we elect their pet fools, all would be well with the world. No other country on earth actually trusts … Continue reading

Jayant Bhandari: Forget Toilet Paper. You'll Need Cash, Gold and Silver, and Smart Investments to Survive COVID-19

Source: Maurice Jackson for Streetwise Reports 03/26/2020 Jayant Bhandari, in conversation with Maurice Jackson of Proven and Probable, outlines dire consequences for Third World countries as a result of coronavirus, and mentions a handful of investments now at bargain prices. Maurice: Today we will discuss the Coronavirus and a number of buying opportunities for your portfolio. Joining us for conversation is Jayant Bhandari, the founder of Capitalism & Morality, and a highly sought-out advisor to institutional investors. Sir, the world is a much, much different place since our last interview in January. May I ask, where are you these days? Jayant: I am currently in India. I came here about two weeks back immediately after the end of PDAC in Toronto. Maurice: For those of us in the West, can you provide us with some insight on how the overall sentiment is there regarding the coronavirus, and what type of precautions are being taken there by the government and the citizens alike? Jayant: When I arrived in New Delhi, Maurice, they were testing the temperature of everyone, but they were more focused on collecting a self-declaration form that people were asked to fill up. And apart from the Delhi airport, there was virtually nothing happening in the country. I flew around to a couple more airports after that and there were booths that was supposed to be manned by health officials to test temperature of people, but the booths were empty. So, in a mere 20 days, the dysfunctionality of … Continue reading

Potential Rerating Ahead for New Gold Producer

Source: Streetwise Reports 03/26/2020 Why it is a good time to get into Lundin Gold stock and the company’s major move in response to COVID-19 are covered in an Echelon Wealth Partners report. In a March 23 research note, Echelon Wealth Partners analyst Ryan Walker wrote that the big recent pullback in Lundin Gold Inc. (LUG:TSX; FTMNF:OTCMKTS) stock “represents an excellent entry point as we look for the company to recapture the lost ground post COVID-19 on expectations of gold strength during the balance of 2020 and longer term.” Walker highlighted that with most of Lundin Gold’s year-to-date gains gone, a rerating could be imminent. It is well below its recent high of $12.69 achieved when the company became a producer and gold prices were high. Vancouver-based Lundin recently announced it achieved commercial production at Fruta del Norte, Walker noted. It successfully ramped up production to an average throughput of 70% of mill capacity and maintained that level for 90 consecutive days Though no coronavirus infections have been reported among workers at Lundin Gold’s Fruta del Norte gold mine in Ecuador, the company, in a proactive move, temporarily halted production there in light of COVID-19, reported Walker. To minimize the effects of the shutdown, care and maintenance and special projects will be undertaken until production is resumed. Walker also relayed that the Ecuadoran government waived for its mining industry the new restrictions on the domestic transport of goods and services initiated due to the coronavirus. Lundin is working with its … Continue reading

Use It Up, Make Do, or Do Without

Source: Bob Moriarty for Streetwise Reports 03/26/2020 Bob Moriarty of 321gold predicts a depression that is going to turn the world upside down. We entered a depression that is going to turn our world upside down. Before it ends the general stock market will be down 85-92%, banks will close and governments fall. People still do not realize the impact of the coronavirus. It will kill tens of millions of people in the world before it fades away. It will change how we physically interact with each other. The quarantine is going to create a measurable increase in the number of babies born in about nine months. In two weeks or so, the number of divorces filed will skyrocket. Suicides are going to increase a lot, some people not only can’t be alone with others, they can’t even be alone with themselves. In 1981 I got to fly in an air race from Paris to New York back to Paris with the most incredible pilot I ever flew with. He had an interesting saying that he had picked up as a child growing up in the depression. I heard it a lot, it was like a mantra to him: Use it up, make do or do without. His name was Tom Danaher. He had been a night fighter pilot at the tail end of WW II. He could fly circles around anyone I ever flew with. He grew up poor during the depression as did most Americans. The depression had … Continue reading

With 'Attractive Valuation,' Gold Producer 'Upgraded to Outperformer'

Source: Streetwise Reports 03/26/2020 What makes Kirkland Lake Gold a compelling investment and its areas of focus in 2020 are presented in a CIBC report. In a March 18 research note, analyst Cosmos Chiu reported that CIBC upgraded Kirkland Lake Gold Inc. (KL:TSX; KL:NYSE) to an Outperformer rating from Neutral because “the protracted weakness in Kirkland Lake Gold’s share price has created an attractive entry point.” Chiu highlighted the company’s “key attributes that will attract the interest of generalist investors.” One is Kirkland Lake Gold’s significant production at a low all-in sustaining cost. Together, the company’s assets, located in mining friendly jurisdictions in Canada and Australia, produce about 1.5 million ounces of gold at an AISC of $825 per ounce. Another is meaningful expected cash flow. CIBC projects that the Toronto-based miner will generate more than $700 million in free cash flow this year, an 8% yield. Also, Kirkland Lake Gold should benefit from a weakening Canadian dollar and lower fuel prices. CIBC calculated that a 5% move in the U.S. to Canadian exchange rate equals a roughly 10% move in net asset value. Similarly, a 25% decrease in fuel prices translates to about a $25 per ounce drop in AISC at Detour Lake. Chiu noted that for the remainder of this year, Kirkland Lake will continue to focus on operational execution at Detour Lake in Ontario and exploration at Fosterville in Australia. For the latter, the company has budgeted $70–$80 million. About $15–$20 million of those are allocated for … Continue reading

One of the Biggest Short Covering Rallies in History May Be Imminent

Source: Clive Maund for Streetwise Reports 03/25/2020 Technical analyst Clive Maund considers the opportunities posed by recent market and fiscal news. In recent days the Fed has made it plain that it is prepared to buy anything and everything to prevent imminent total collapse, and you don’t have to join many dots to see that this will extend to buying stocks. It’s not that hard for them—all they have to do is enter a few keystrokes, add a few 0s and it’s sorted—and as Gregory Mannarino repeatedly points out, the more debt they issue the more powerful they become. Right now sentiment is “end of the world” negative, and any positive development will be enough to trigger a gargantuan, self-feeding, short-covering rally. Gold’s huge recovery is a sign that this may be about to start. It is, therefore, most interesting to observe on our 3-year chart that the S&P500 index has just hit our long-held target at the bottom of its giant bullhorn pattern, and it has done so with the market in a stupendously oversold condition—at a record, by far. The conditions are therefore believed to be ripe for a screaming, short-covering rally, and the only question is whether it happens immediately or after some volatile zigzagging around in the vicinity of these lows. Action in gold suggests that it will happen almost immediately. Anything that causes a shift in investor perception could trigger it, and once it starts it could be unstoppable for a while, as shorts race … Continue reading

Yields in Mid-Teens: How Vulnerable Are They?

Source: Adrian Day for Streetwise Reports 03/24/2020 Money manager Adrian Day looks at business development companies. Business development companies (BDCs) have been hit particularly hard, on concerns that small businesses to which they lend will not be able to repay loans. That concern is legitimate. The stocks have fallen far more than the broad market, several large ones down 60% over the past month, compared with 32% for S&P. BDCs themselves are leveraged; lending used to be limited to twice assets, but recently the restriction was loosened. Most BDCs, however, have kept their leverage under control, far below what is permitted, with many still well below the old 2-to-1 limit. We do expect to see many portfolio companies of the BDCs unable to repay loans, some perhaps going out of business. However, many BDCs have strong balance sheets and will be able to assist their portfolio companies, if they see fit. Many also have collateral on their loans, which may not see 100 cents on the dollar, will help. Our two holdings has spillover income to be distributed, so could—again, should they choose—continue to pay their current dividends for a few quarters, even if they see a sharp decline in income for that period. And lastly, at present valuations there is a thick cushion; even if book value was cut in half, and the dividend likewise, the valuations would still be on historical norm for the respective companies. The largest and one of the strongest BDCs can continue to pay … Continue reading

Alianza Minerals Aims at Finding Another Silvertip at Tim Project in Coeur JV; Oversubscribed Financing Closed at C$1.1M

Source: The Critical Investor for Streetwise Reports 03/23/2020 The Critical Investor takes a deep dive into this explorer’s projects, joint venture and financing. Alianza Minerals Ltd. (ANZ:TSX.V) was ready for its Phase II drill program at its fully owned flagship Haldane silver project, after their Phase I drill target defining program was completed earlier during the summer of last year. The company has been busy raising additional cash for 2020 exploration, and it started out with a small financing of $250,000 at 5 cents per unit on January 30, 2020. This wasn’t really impressive, but the same financing ended up being oversubscribed unexpectedly to no less than $1.1 million during February, which you don’t hear too often for tiny explorers, and provides Alianza with enough cash for Haldane for the remainder of this year. The timing of this financing was near perfect, as the coronavirus started to wreak havoc on the world directly after this, and is on its way to paralyze the entire world economy now, as countries are shutting down the borders, and entire sectors deemed non-vital in many countries are being shut down at the moment, including mining operations in countries like Peru most recently, which declared a state of emergency. Other countries are likely to follow suit soon. As a consequence, a recession is becoming more and more likely for this year according to many analysts, although a recession already was in the cards based on many indicators. As I believe this myself as well, I … Continue reading

The Depravity of the False Flag

Source: Michael Ballanger for Streetwise Reports 03/23/2020 Sector expert Michael Ballanger describes what he believes is really behind the market crash. “Never let a good crisis go to waste.” —Sir Winston Churchill My late older brother Donnie was a quasi-anarchist tax collector for the Canadian government who self-educated himself and then morphed from a grumbling, cynical security guard/starving artist to a very successful 20-year career auditor with the Canada Revenue Agency (CRA) before his untimely passing in 2014. Within weeks of the 9/11 terrorist acts that brought down the Twin Towers in New York City in 2001, he summoned me for a beer conference at the local suds parlor in the West End of Toronto. Holding court for around an hour and a half and three pitchers of local stout, he set about to convince me that all those aircraft slamming into major American landmarks of symbolic importance could only have been a “false flag” operation that was the design and execution of the American government. His cynicism could be aggravating at times, but it was never, ever without argumentative substance. It was only until after the second Gulf War and subsequent confiscation of Iraqi oil fields, and the almost twenty-year “War Against Terror,” that evidence has come to light that in retrospect makes Donnie look somewhat clairvoyant. Saudi terrorists carrying out multiple terrorist missions invoking massive retaliation against Iraq and Afghanistan might appear somewhat “misdirected,” but that is a discussion for the beer tent and not today’s microphobic maelstrom. … Continue reading