Auryn Begins World-Class Exploration on Seven Properties

Source: Bob Moriarty for Streetwise Reports 07/17/2017 Bob Moriarty of 321Gold explores the prospects of a company he believes is run by a “dream team” that has assembled a stable of world-class projects. Over the past eighteen years, since the low of gold at $252 in August of 1999, management teams in the junior resource industry have had all the opportunity in the world to prove their competence. Or lack thereof. For the first time in history, probably driven by demand for everything from China, every commodity was in shortage and exploded higher. I’ve never heard of that before. Companies with good technical teams and smart management all hit home runs in the past fifteen years. But, as in baseball, there were a few home runs and a lot more strikeouts or whiffed catches. Keegan Resources in Ghana proved to be a home run, going from $0.49 to $9+ with 10 million ounces of gold. The same management and technical team went from success in Africa to advancing a major gold district in Mexico when you couldn’t give gold away from 2011 until 2015. When I went to see them four years ago the stock was $0.67 and the company got no attention. My only disagreement with them was that they were underestimating the size of the project. In my eyes it was a lot bigger than they thought. Now they agree I got it right. That brilliant technical and management team sold the company a year later in the … Continue reading

Gold: Cheaper Than Buying Greek Villas in 2012

Source: Tom Beck for Streetwise Reports 07/16/2017 Tom Beck, founder of Portfolio Wealth Global, delves into the factors that drives gold investment demand. Gold prices peaked in 2011 at a price of $1,925 per ounce, and since then, it has plummeted. The bottom was set in 2015 when gold was hated and disregarded by investors—it was trading for $1,099. Portfolio Wealth Global has spent hundreds of hours speaking with world-class mining speculators, and what has become most clear to our members by now is that when this sector becomes ugly, distressed and disgusting, it also becomes awfully cheap and attractive—these attributes go hand-in-hand. That’s the gold playbook for massive profits. I personally own precious metals because it’s the sensible thing to do. I also own some cryptocurrencies, as a speculation into the future of payment systems. With the national debts of all modern nations, from Australia to Japan, the entire continent of Europe, Canada, and the granddaddy of all debtor nations, my native U.S. of A. ballooning into the tens of trillions, it’s not even an option to have only fiat digits in your asset portfolio—safe havens must also be accumulated. In 2008, when I started accumulating my “survival portfolio,” the clear-cut mentality of mining fortunes was revealed to me in the investment conference I attended. It was 2009, and Canadians were seeing a blood in the streets moment. This is not a sector in which you sit back and forget about your portfolio for a few years. Instead, it’s … Continue reading

The Biggest Opportunity in Precious Metals Since Late 2015, and the Last Chance at These Prices

Source: Clive Maund for Streetwise Reports 07/15/2017 Technical analyst Clive Maund’s analysis of the charts is indicating that gold and silver are positioning for a big move upward. We’ve had to wait 18 months for an opportunity as big as the one we saw late in 2015 to appear again in the Precious Metals sector. “Wait a minute,” I hear you say, “prices were generally lower back then at that low than they are now, so how can it be as big an opportunity, as leverage is reduced?” Here are the reasons, one technical, the other fundamental. When prices rose out of the late 2015 low, which was the Head of the Head-and-Shoulders bottom shown to advantage on the 10-year chart for GDX (VanEck Vectors Gold Miners ETF) below, they were destined to retrace to mark out the Right Shoulder of the pattern, which is what now has most investors very negative towards the sector again. This time they don’t have to—they can now rise out of this trough and proceed to break out upside from the entire pattern to embark on a mighty bull market. The fundamental reason is this: most investors have been taken in by the specious central bank talk about “normalizing interest rates” and scaling back their bloated balance sheets, but they haven’t got a cat in hell’s chance of doing this. Why? Because debt (and associated derivatives) has expanded to such gargantuan levels that any attempt to bring it under control will send interest rates … Continue reading

Is this Gold-Silver Royalty Company Poised to Rally?

Source: Peter Epstein for Streetwise Reports 07/14/2017 Peter Epstein of Epstein Research explains why he believes the pieces are falling into place for this royalty and streaming company. I’ve written two articles [May 5] / [June 19] about an emerging precious metals Royalty/Streaming (R/S) company in the past two months. I figured that would have been enough until August, especially after the “flash crash” that sent silver briefly to US$ 15.21/oz. on July 7th. So why am I revisiting Metalla Royalty & Streaming Ltd. (MTS:CSA; NASDAQ:EXCFF) again so soon? First, I was reminded by several readers that an important catalyst for the company is its listing on the TSX Venture Exchange, within two months. I hereby restate that event as not just an important catalyst, but a near-term catalyst. While some might not think of two months as near-term, it is for those smart enough to buy shares BEFORE the up-listing. The average daily trading volume after the Coeur Mining deal was announced through the end of June has been ~120,000 shares. It would not take a hell of a lot of buying to return the share price to the $0.60’s {at $0.52 on July 10th}. Second, valuation as measured by a cash flow multiple is cheap compared to precious metal R/S peers. However, several peers are giants like Franco-Nevada Corp. (FNV:TSX; FNV:NYSE), Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) and Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX), prompting some to question the wisdom in using majors as comps. Point taken. Metalla Royalty … Continue reading

Frank Giustra Builds Another Gold Producer

Source: The Critical Investor for Streetwise Reports 07/13/2017 The Critical Investor discusses a proposed business combination that would transform an explorer into a developing producer with major assets in Nevada. 1. Introduction In December 2016, I introduced Fiore Exploration Ltd. (F:TSX.V; FIORF:OTCQB), a new company backed by Frank Giustra, and it has been a relatively quiet six months. Fiore completed some drilling on the Pampas El Peñon project in Chile and an IP survey on the newly acquired Cerro Tostado. But behind the scenes, things were in motion. Earlier this year, Fiore began exploring the idea of merging with GRP Minerals, a private company ramping up the Pan heap leach operation in Nevada. GRP bought Pan and other Midway Gold assets for US$5.5 million and spent another US$18 million on upgrading and restarting the operation. Midway had spent more than US$100 million constructing the Pan mine but in the end failed to execute. The demise of Midway Gold is a whole other story, one I will touch on later. The new entity will be named Fiore Gold, and Fiore Exploration CEO Tim Warman will stay on as CEO. I spoke extensively with Warman while preparing this article. The agreement to combine with GRP Minerals has transformed Fiore from a quiet explorer into a developing producer with exploration assets. Now, however, those earlier-stage projects in Chile will be underpinned by development and production from the new Nevada assets. Strong and experienced heap leach management has been brought on by advisor Paul … Continue reading

Has Novo Discovered the Wits West?

Source: Bob Moriarty for Streetwise Reports 07/13/2017 Bob Moriarty of 321 Gold discusses the potential for Novo Resources to have a Witwatersrand-style deposit and the recent run-up in the explorer’s stock. Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX) put out a press release on July 12th that lit the stock on fire with the stock up 55.2% with 1.7 million shares trading and the price up to $1.49, up $.53 on the day. The press release was interesting in that for the first time to my knowledge the TSX has allowed a YouTube video to be attached to a press release. The first video shows someone using a metal detector to find the signal of a nugget in the first test pit and the second shows someone using an air chisel to actually pry out a rock containing several gold nuggets. It’s funny that the stock goes up 55% just now because Novo press releases have been talking about the style of mineralization and people using metal detectors to find gold since May 26, 2017. The company’s web page discussing the style of gold and showing samples of nuggets in rock and a close up picture of the gold has been up for a month without anyone taking notice. I don’t pay much attention to bulletin boards but a poster named TexasT has been posting on the Novo Resources Stockhouse Bullboard since June 12, 2017, talking about how rich is Comet Well and the area that Novo did a deal on in … Continue reading

Steady Progress Pushes Canadian Explorer to Dig Deeper and Expand in Mexico

Source: Streetwise Reports 07/13/2017 An updated resource estimate and PEA in Q3/17 by a large exploration company will include plans for expansion after steady progress and a recent high-grade discovery at its Mexico project. Progress and steady results has been the mantra for MAG Silver Corp.’s (MAG:TSX; MAG:NYSE.MKT) “world class silver-gold-lead-zinc” JV Juanicipio project (56% owned by Fresnillo Plc) in Mexico, according to Canaccord Genuity analyst Kevin MacKenzie. In a recent report, Mackenzie looked back at the history of the Juanicipio project, explaining that over the last two to three years the underground exploration has made steady advances leading to the discovery of the high-grade Dilatant Zone. Due to this discovery, “the joint venture is now contemplating expanding the project’s designed throughput to 4,000tpd (previously 2,650tpd), as well as sinking an internal shaft to allow for earlier access to wider zones of mineralization at depth,” MacKenzie wrote. Mackenzie pointed out that the updated technical PEA will most likely “capture the impact of the materially larger resource base” and include costing similar to the Saucito Mine owned by Fresnillo Plc (FRES:LSE). Viewing MAG Silver “to be one of the premier investments within the silver developer space,” MacKenzie noted that another near-term rerating may be necessary due to “the potential discovery of another high-grade vein.” Currently MacKenzie rates MAG Silver as a speculative Buy with a target price of $24 per share. MAG shares are currently trading at around $16. Rodman & Renshaw analyst Heiko Ihle also has a positive outlook on … Continue reading

The Bubble in Financial Assets Continues

Source: Rudi Fronk and Jim Anthony for Streetwise Reports 07/13/2017 Rudi Fronk and Jim Anthony explore the connection between market bubbles and the price of gold. We thought that when the gold price broke above its five-year downtrend in early June, it would establish an upward trend. We were wrong. Another false start, it seems. The bubble in financial assets continues. We think understanding bubbles is the key to discerning the big moves in the gold price. The west has documented seven financial manias or bubbles in the last 250 years. These bubbles peaked and then collapsed in 1720, 1772, 1825, 1873, 1929, 2000 and 2008. In every case, gold performed relatively less well in the expansion years of the bubble and outperformed every other asset class in real terms in the contraction phase. In the recent manias, we also know that gold stocks substantially outperform gold during the contraction phase because operating costs fall. Let’s look at the recent examples. In 2001, the dot.com mania collapsed and gold soared to new highs. In 2008 a bubble in housing led to a collapse of the financial system and once again gold took off to new highs. In 2012, the Fed succeeded in creating yet another bubble in stocks and bonds after dropping rates to zero and flooding the system with liquidity via an alphabet of programs, chief among them QE (quantitative easing). Gold performance has since fallen well behind stocks and bonds in the expansion phase of the current mania. … Continue reading

Gold and Silver: Your Stomach Is Probably Wrenching Right Now

Source: Lior Gantz for Streetwise Reports 07/11/2017 Wall Street’s largest firm, Goldman Sachs, is throwing in the towel on commodities, which reminds Lior Gantz, Wealth Research Group’s founder, of 1998, when Merrill Lynch closed its commodities desk very close to the end of a cyclical bottom. Gold is up for the year, but silver just made a 52-week-low. This is a highly unique situation—it rarely happens. Silver ended 2016 priced at $15.91, and it is now priced at $15.61. Gold, on the other hand, ended 2016 priced at $1,151.94 and is now priced at $1,212.46. This puts the gold/silver ratio at 77.65, which is unusually high, but it might reach 84 before reverting back to the 65:1 range. Historically, when silver outperforms gold, the mining shares rally, and when the latter is true, the miners are weak. We are close to an extreme right now. What’s even more unique is that for only the third time since 2000, when the commodities supercycle began, we have a brief timespan I call “The Millionaire Window,” and you’ll see what this is all about is our weekend article. It’s part of why I’ve been considering taking profits on my favorite cryptocurrencies. Realize this: Goldman Sachs, the world’s No. 1 commodities trader, is doing a nuts and bolts review of the trading desk! Remember that CEO of Goldman, Lloyd Blankfein, started his career in the commodities business, but he is drawing closer to the industry’s prevailing consensus. Morgan Stanley, JPMorgan Chase & Co., Barclays … Continue reading

Undervalued Companies for the Precious Metal Portfolio

Source: Streetwise Reports 07/11/2017 The rebalancing of the GDXJ and other factors offer buying opportunities in the precious metals space, says Ralph Aldis, portfolio manager at U.S. Global Investors, who discusses a number of companies he believes offer good value in today’s marketplace. The Gold Report: Ralph, thank you for joining us today. Let’s talk about royalty and streaming companies. What factors are making them attractive investment vehicles right now? Ralph Aldis: There are several aspects. We look at factors like return on invested capital. It doesn’t necessarily have to be extremely high; we just want to see that there’s low volatility in those returns. The royalty companies do that very well. The royalty companies are highly diversified, and thus, the geologic risk of any particular deposit really has been diversified away. Additionally, royalty companies essentially get paid off the revenue line of other mining companies. They’re getting paid first, and those cash flows have a high certainty to them because they’re coming off the topline versus coming off the bottom line. TGR: What royalty and streaming companies are at the top of your list? RA: The three biggest and most successful ones have been Franco-Nevada Corp. (FNV:TSX; FNV:NYSE), what’s now called Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) and used to be Silver Wheaton, and Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX). The last three to five years, Franco has outperformed the other two companies by a pretty good margin. That’s because the other two names have had some minor issues. But … Continue reading