Exciting News with More to Come

Source: Adrian Day for Streetwise Reports   01/15/2018

Money manager Adrian Day provides updates for a handful of companies in his portfolio.

A day late and a dollar (in this case, a penny) short: The day after our last recommendation, Evrim Resources Corp. (EVM:TSX.V, 0.42 x 0.44) opened above our limit and has moved up dramatically ever since, trading as high as 47 cents on Jan. 12. Another respected letter writer listed Evrim as one of his top picks for 2018 on the same day as our recommendation.

Don’t forget who actually owns the property!

On Jan. 9, First Majestic Silver Corp. (FR:TSX; AG:NYSE; FMV:FSE), Evrim’s partner on its Ermitano project, put out a release discussing the results of its 2017 company-wide exploration. It highlighted some of the drill holes from Ermitano, which had been awaiting release. The information was sketchy; there was not even a map showing where on the property the drill holes were. And for whatever reason, nowhere in the release did it even mention that First Majestic did not in fact actually own the property. They are earning in to the property on certain conditions. A couple of so-called analysts put out their so-called research pieces regurgitating the press release, but whether through ignorance or laziness, also failed to mention that someone else owned the property.

In any event, the results look good; it will be interesting to find out where these drill holes are located. It is definitely positive news for Evrim. Either First Majestic steps up its program and meets the conditions set for earning into the property this time next year. (FM will earn 100% of the property in exchange for some modest payments and a 2% royalty for Evrim); or FM, failing to meet the terms, will make an offer to Evrim, perhaps for all three of its properties near FM’s Santa Elena mine (and Evrim will hold the upper hand in any such negotiations); or the property reverts to Evrim. Any one of these outcomes would be positive for Evrim, and we will know a year hence.

What to do?

We will look to revise our recommended limit once things have settled down. We would note that Evrim does have the right to force exercise of their warrants if the stock trades above 35 cents, and a forced exercise can cause some weakness since holders sell stock to raise cash to exercise warrants.

Another equity raise

Miranda Gold Corp. (MAD:TSX.V, 0.05 x 0.055), as expected has announced an equity raise, planning to raise up to $1.5 million. The terms are not overly generous, with the unit priced at 5 1/2 cents (current offer) and warrants exercisable at 12 cents, over twice current market. With potential cash coming in over the next 15 months, on new deals, this should be sufficient until the royalty income on the Lucky Shot mine commences. As discussed, Miranda is bottoming and if plans are executed over next year or more, should recover nicely.

Agreement close

Freeport-McMoRan Inc. (FCX:NYSE, 19.72) is close to an agreement with Indonesia on the future of the Grasberg mine. A multi-party memorandum of understanding is being signed by the parties today, in Indonesia. We await the fine print.

Temporary problem exaggerated in market reaction

Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX, US$84.99) plunged after announcing that the Mt. Milligan mine, its largest royalty asset by asset value and revenue, had ceased mill processing operations temporarily. The move, by operator Centerra, was due to a lack of sufficient water resources (due both to a rain/snow shortfall and extremely cold weather that froze the tailings facility). The company expects milling operations to be partly resumed by the end of the month, and fully resumed following the spring melt.

At worst, the shortfall in production—which will be recorded in the middle quarters of this year—will be a timing issue; the stock price move, down over 10% in two days, was an exaggerated reaction. It reflected the ongoing problems Royal has experienced with Mt. Milligan, I think, more than this specific issue. With the past week’s move in gold, the stock has mostly recovered—its low was just over $78—but we think it has much further to go.

Adrian Day, London-born and a graduate of the London School of Economics, heads the money management firm Adrian Day Asset Management, where he manages discretionary accounts in both global and resource areas. Day is also sub-adviser to the EuroPacific Gold Fund (EPGFX). His latest book is “Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks.”

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Disclosure:
1) Adrian Day: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Evrim Resources, Royal Gold. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. Funds controlled by Adrian Day Asset Management hold shares of the following companies mentioned in this article: Evrim Resources, Freeport McMoRan, Miranda Gold and Royal Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Evrim Resources and Miranda Gold, companies mentioned in this article.

( Companies Mentioned: EVM:TSX.V,
FCX:NYSE,
MAD:TSX.V,
RGLD:NASDAQ; RGL:TSX,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/01/15/exciting-news-with-more-to-come.html

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‘Grossly Undervalued’ Miner Enters 2018 with Abundant News about Its Argentinian Projects

Source: Streetwise Reports   01/16/2018

A small-cap miner moving forward on its prospects in Argentina has caught the attention of several industry watchers.

Golden Arrow Resources Corp. (GRG:TSX.V; GAC:FSE; GARWF:OTCQB), operating the Chinchillas gold/zinc/lead deposit and the Pinquitas silver/zinc mine in Argentina, released significant news toward the end of 2017. In November, the company announced it was initiating a $1 million “exploration program at its 100% owned Pescado Gold Project” in San Juan, Argentina. “The exploration program will include additional geophysics and surface work to refine drill targets, with up to 1,800 metres of drilling budgeted,” according to the press release. “Work permits have been granted by the provincial mining authorities, and the technical team is now commencing exploration at the Yanso target area.”

In December, Golden Arrow announced Puna Operations Inc., “a joint venture comprised of the Pirquitas property and the Chinchillas property, owned 25% by Golden Arrow,” had secured “approval of the Environmental Impact Assessment from the Argentine regulatory authorities in Jujuy Province, Argentina, and therefore is now permitted for exploitation.”

For Brien Lundin, writing in the December-January issue of the Gold Newsletter, “Golden Arrow fits the mold of near-term production stories that I think will perform well in the new year, assuming the precious metals markets play out like I expect.”

Lundin noted that among the “vast footprint” of the company’s holdings in Argentina, “the key holding in its portfolio is its 25% interest in Puna Operations, a joint venture with long-time Gold Newsletter constituent SSR Mining, the updated moniker for Silver Standard Resources.”

This joint venture “includes current production from stockpile mining at [the] Pirquitas mine,” as well as “a plan to extend the mine life at Pirquitas by trucking ore from the companies’ now-shared Chinchillas silver-lead-zinc project,” Lundin wrote.

“Golden Arrow plans to use the funds from operations at Pirquitas and Chinchillas to make additional property acquisitions in Argentina. It also plans to spin out its large exploration portfolio into a separate company in early 2018, so shareholders who buy in before this event will get to participate in that portfolio’s considerable upside,” Lundin added.

GSA-Silver also reacted favorably to news from Golden Arrow, adding the company to its GSA Silver Fave 5 Portfolio. In its analysis, GSA pointed out that “Golden Arrow has history of exploration success.” The company possesses “many potential upside opportunities,” including a “possible spinout of exploration assets [that] could create additional value” and the possibility that “UG mine expansion focused on small scale, high grade feed at Pirquitas could boost already strong Puna [production] and economics.”

In an article published on Seeking Alpha, writer Steven Goldman noted that “the Puna JV with SSR Mining will be a cash-generating operation anticipated to begin in H2 2018 generating annual revenues for Golden Arrow equal to about 2 million oz of Silver Eq.”

Goldman noted that, “for those willing to take on some risk at its current share price, trading close to its 52-week lows, Golden Arrow presents a very attractive investment opportunity with a substantial upside.”

Commenting on the joint venture with SSR, Goldman wrote that, “Based upon the PFS, Golden Arrow’s 25% interest, once fully operational, should effectively generate approximately 2 million Silver Eq ounces per year at a cash cost of $7.40/oz (AISC $9.75 per oz). Based upon current silver prices of approximately $17.00 per oz. . .Golden Arrow would be receiving approximately $15 million to $20 million per year [as] a passive joint venture shareholder partner.”

Goldman believes Golden Arrow has “evolved from an exploration company into a revenue-generating entity,” and is “grossly undervalued.” Though investment in the company comes with risk, he added, “the potential upside in Golden Arrow could be substantial. “

Want to read more Gold 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 and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Tracy Salcedo 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 billboard sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Golden Arrow Resources, a company mentioned in this article.

Additional disclosures

Disclosures from Gold Newsletter, December 2017-January 2018
The publisher and its affiliates, officers, directors and owner actively trade in investments discussed in this newsletter. They may have positions in the securities recommended and may increase or decrease such positions without notice. The publisher is not a registered investment advisor. Authors of articles or special reports are sometimes compensated for their services.

Disclosures from Seeking Alpha, Steven Goldman, Dec. 4, 2017, “Golden Arrow Resources: Undervalued with Catalysts”

Disclosure: I am/we are long GARWF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Additional disclosure: The CEO of Comstock Metals (TSX.V: CSL.V) is Dr. David Terry who is also a board member of Golden Arrow. I am a member of the board of directors of Comstock Metals.

Disclosures from GSA-Silver, Dec. 20, 2017
Companies do not pay for coverage. Selection for coverage is entirely determined by GSA-Silver’s staff and based in part on: 1) Stock trades in North America; 2) Current Silver production and/or a published independent feasibility study showing a deposit to be economic; 3) Current or potential 1+ mil oz/yr production. All rights reserved/protected under US Copyright Law. No reproduction of any portion without specific permission. GSA-Silver owns a token number of shares in all firms covered for information purposes. The Editor/Publisher and Employees may buy/sell securities of firms herein at any time, increase/decrease and trade around positions, but never act contrary to SSA’s basic recommendation.

( Companies Mentioned: GRG:TSX.V; GAC:FSE; GARWF:OTCQB,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/01/16/grossly-undervalued-miner-enters-2018-with-abundant-news-about-its-argentinian-projects.html

Jack Chan’s Weekly Precious Metals Update

Source: Jack Chan for Streetwise Reports   01/15/2018

Technical analyst Jack Chan charts the latest movements in the gold and silver markets, and says that 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: the big trend is down, which is supportive for higher 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 bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.

Want to read more Gold 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 and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Statements and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation or editing so the author could speak independently about the sector. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) Jack Chan: We do not offer predictions or forecasts for the markets. What you see here is our simple trading model, which provides us the signals and set-ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion. We also provide coverage to the major indexes and oil sector.
3) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

Charts courtesy of Jack Chan

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/01/15/jack-chans-weekly-precious-metals-update-11.html

Thoughts on Novo

Source: Bob Moriarty for Streetwise Reports   01/15/2018

With shares of Novo Resources on a rollercoaster since the summer, Bob Moriarty of 321 Gold discusses the company’s latest moves.

Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX) shareholders have been on a wild rollercoaster ride since early July when the stock snoozed at about $0.80 a share. A video posted on YouTube of prospectors locating gold nuggets at surface at Purdy’s Reward acted as a catalyst to propel Novo higher to $8.83 in the first week of October for a 1000% increase in just over three months.

While the price of shares skyrocketing brought a lot of attention to Novo, there has been more disinformation, misinformation, absurd conspiracy theories and simply stupid comments posted on chat boards than any stock I have ever followed.

One industry “expert” estimated on the basis of a single sample that Novo might have something ten times bigger than the entire Witwatersrand. In November when Novo announced that the large diameter drilling wouldn’t work and later released an additional two assay results, the same “guru” changed his tune to suggest that he couldn’t possibly come up with an idea of the economics of the project.

I was dumbfounded at both statements. There have only been about 6 billion ounces of gold ever produced so saying that a project could be 20 billion ounces is akin to suggesting that the moon “might” be made of green cheese. And given that the Vits grade is estimated at between 8 and 15 g/t and Vits thickness is under half a meter, you don’t have to understand very much to be able to say that if they can mine at a profit in South Africa at a depth of 15,000 feet or almost 4 km, you ought to be able to make money mining higher grade, same thickness but at surface. For months we had almost daily reports on Novo from this writer but hopefully he’s now gone quiet.

Novo has released only five assays total from four samples. In early August the company reported results from a single bulk sample that they split so there are two results but from only one sample. One split showed 87.76 g/t or 2.82 ounces a ton and the other showed 46.14 g/t or 1.48 ounces. Those results should have been a red flashing light to investors. If you split one sample into two batches and one shows a grade almost twice as high as the other, you know you are going to have a giant problem getting an accurate measure of grade due to the nugget effect.

Quinton Hennigh made it clear that he wanted to try the large diameter reverse circulation drill but that it was only a test. No one knew if it would work or not. And in November he reported that it did not work but they were happy with trenching to determine grade and diamond core drilling to determine structure.

Investors have a hard time coming to grips with the concept of stock prices going both up and down. If a project is good, the share price “should” go up every day and if it doesn’t, it’s “proof” of either a conspiracy to manipulate price or the property was a heap of crap in the first place.

Huh? How does that work? As Rick Rule has said many times in the past, every great project with a big advance will have a 50% decline and it’s no big deal. Nothing released by Novo since July was anything other than exceptional yet investors fell all over themselves running for the exits.

In late December Novo began to release the trench results. There were three assays from three samples. The first was 15.7 g/t, the second was 17.7 g/t and the third, taken from 40 cm above the basal contact was 1.3 g/t. Those investors who had not already broken one or both legs in the rush to exit stumbled to the door to sell in the hopes of capturing the biggest loss they could while they still could.

If you average the first two samples, you come up with 16.7 g/t over 40 cm on top of the basal contact which makes a great marker. That’s twice the grade of gold being mined at a profit today in the Vits. Except it’s at surface in Karratha which is a whole lot cheaper to mine. And 40 cm is an average of Vits thickness.

In their ignorance, investors took the 1.3 g/t assay as being negative. That’s pretty stupid. First of all, drilling is aimed at determining two things. As all mining engineers know, there are only two kinds of rock, ore and waste. It’s just as important to know where the waste is than to know where the ore is. So an uneconomic assay sample is not bad news, it’s exceptionally important to know what is not ore. And actually, with gold at $43 and change a gram as I write, 1.3 g/t rock is worth $56 a ton. At surface that’s also economic but if the sample had shown no gold at all, it was still important information for Novo to know.

The summer sun bakes Western Australia now and will for another month or so. Work has stopped at Purdy’s for now. Novo has applied for their Plan of Work and already has some approvals including permission for a 10,000-ton bulk sample. Novo expects to begin work at their 80% owned Comet Well by the end of February.

There has been a lot written and said about the processing plant at Radio Hill all of which is nonsense. It’s a plant designed for sulfide ore. Purdy’s is not sulfide ore, it’s nuggety gold and Radio Hill can’t possible process it. Lenigas keeps talking about putting in a gravity circuit but even that is a giant problem. There isn’t a gravity plant in the world today capable of handling ore of this grade. As I have been saying for months, this is a unique deposit and has to be approached in a unique way with new thinking.

What Radio Hill does have that might be valuable to the JV is water for processing and a permitted tailings pond. But anyone saying all you have to do is truck the rock over to Radio Hill and run it through the existing plant is blowing smoke. An entirely new gravity circuit built around jigs and a big sluice box would work but it will take months to put together.

Novo is not sitting on their hands. The company is talking to the native corporation as I write and having a royalty agreement in place for Comet Well is a high priority. Fifteen to twenty bulk samples have been sent to Nagrom and by the end of January results should start coming out.

While it would have been nice to be able to determine gold quantity and grade with the large diameter drill, it’s not mandatory. We know it’s nuggety gold, the variation in grade from the first two assays show how difficult it is to measure even within the same sample. Quinton is holding out a belief that somewhere there will be small gold in the system easier to drill but I hold no such hope. What I do know is all of the gold samples so far have been exceptional grades that are economic for certain. You don’t have to be able to measure it, you can mine it.

I feel bad for the investors who were buying at $9 and sold in a panic but I’ve been trying for five years to give a more balanced view of Novo and the Pilbara. Anyone writing off the company and the project is making a giant mistake. I’ve seen identical gold spread over 135 km at least and that’s good enough for me.

I own a lot of Novo and they are an advertiser and I am biased.

Novo Resources
NVO-V $3.39 (Jan. 15, 2018)
NSRPF $2.73 OTCQX 148 million shares
Novo Resources website

Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

Want to read more Gold 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 and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Novo Resources. Novo Resources is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: NVO:TSX.V; NSRPF:OTCQX,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/01/15/thoughts-on-novo.html

Week in Review: Section 232 Report Moves to Trump, MMIs and Oil

Before we head into the weekend, let’s take a quick look back at the week that was here on MetalMiner: Need buying strategies for steel? Try two free months of MetalMiner’s Outlook This week we wrapped up the latest round of posts for our January Monthly Metals Index (MMI) — check out this week’s posts…

The post Week in Review: Section 232 Report Moves to Trump, MMIs and Oil appeared first on Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner.

from Precious Metals – Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner https://agmetalminer.com/2018/01/12/week-review-section-232-report-moves-trump-mmis-oil/

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 the same story for silver, with two key differences—silver’s Head-and-Shoulders bottom is downsloping and the volume indicators are not quite as strong. However, these manifestations are not negative, for it is normal for silver to underperform gold towards the end of a sector bear market and during the early stages of a bull market.

Are there any precious metals stocks showing similar bottoming patterns? There certainly are—loads of them, and we will have a look at two examples here, one for a larger gold stock and one for a larger silver stock, to illustrate the point, so that you will understand that this is not just an academic exercise—and that you are currently being showered in opportunities to make big money in this sector.

The long-term chart for Gold Resource Corp. (GORO:NYSE.MKT) shows that it is completing a giant Head-and-Shoulders bottom that parallels the one in gold itself, and since the price is still quite close to the low of the Right Shoulder low of the pattern, it is at a good entry point.

The long-term chart for Alexco Resource Corp. (AXU:NYSE.MKT; AXR:TSX) shows that it is completing a fine giant Head-and-Shoulders bottom that parallels the one in silver itself, although it is not downsloping, and since the price is also still quite close to the low of the Right Shoulder low of the pattern, it too is at a good entry point.

Gold and silver have not done well in recent years, having been completely overshadowed by the broad stock market and more glamorous sectors like Biotech, Cannabis, Cryptocurrencies and the FANGS, etc. If they go roaring up, then it means that something else is going to have to go down, and that probably means most everything else in a market crash, which is already being predicated by action in the bond market and other factors, and all the easy money momentum chasers who are now almost everywhere are going to wind up being slaughtered en masse like Pilot Whales on a Faroes beach. We are not going to let that happen to us.

Clive Maund has been president of http://www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

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Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
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4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Charts provided by the author.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

( Companies Mentioned: AXU:NYSE.MKT; AXR:TSX,
GORO:NYSE.MKT,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/01/11/optimum-entry-point-for-gold-and-silver-stocks.html

Mine’s Updated Mineral Resource Contains Higher Grades

Source: Streetwise Reports   01/11/2018

Euro Pacific Capital reviewed the new estimated resource released by this company for its Peruvian mine.

In a Dec. 21 research note, Euro Pacific Capital analyst Bhakti Pavani reported that Great Panther Silver Limited (GPR:TSX; GPL:NYSE.MKT) released an updated mineral resource estimate for its Coricancha mine, which it had acquired from Nyrstar in June 2017. “We believe the overall mineral resource update at Coricancha is positive,” Pavani commented.

In the updated version, the Measured and Indicated (M&I) resource totals 752,759 tons. The M&I silver equivalent is higher, having increased to 24.2 million ounces from 21.96, Pavani highlighted. However, Inferred silver equivalent are lower, having decreased to ~0.9 million tons from 4.9, primarily due to the difference in methodologies used to calculate the resource.

Most noteworthy about the estimate, Pavani noted, is the metal grades “are comparatively higher than” those in the previous estimate. Comparison of the grades in the newly calculated resource to those initially determined showed 200 versus 174.6 grams per ton (200 vs. 174.6 g/t) gold, 5.8 vs. 5.04 g/t silver, 2.06 vs. 1.97% lead, 3.26 vs. 3.11% zinc and 0.53 vs. 0.42% copper, respectively.

For the resource update, Great Panther used the results from its own drilling of 33 diamond holes, (~6,000 meters) on the property along with the data Nyrstar had amassed and used in the historical resource in 2012.

The miner aims to complete and announce the results of optimization and technical studies on Coricancha by Q2/18, Pavani reported, with production likely starting there sometime in 2020. Euro Pacific believes Great Panther has sufficient cash to advance the project to that point.

Euro Pacific has increased its valuation on Coricancha to $85 million from $74 million based on the updated, NI-43-101-compliant resource estimate and “assuming the recovery of 80% of the M&I resource and 64% of the Inferred resource,” Pavani explained.

Regarding an update at the company’s Topia mine, Pavani indicated that in a “significantly positive development,” Great Panther now holds all of the required permits to build and run the new phase 2 tailings storage facility there, and plans to start construction immediately. The analyst added that the company has “sufficient capacity remaining at phase 1 to allow uninterrupted mining operations at the Topia mine and expects a seamless transition to deposition at [the] phase 2 tailings storage facility.”

Euro Pacific has a Buy rating and a CA$2.90 per share target price on Great Panther Silver, whose stock is currently trading at around CA$1.70 per share.

Want to read more Gold 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 and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

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 billboard sponsors of Streetwise Reports: Great Panther Silver. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Disclosures from Euro Pacific Capital Inc., Great Panther Silver, Company Update, Dec. 21, 2017

Euro Pacific expects to receive or intends to seek compensation for investment banking services from all companies under research coverage within the next three months. Euro Pacific or its officers, employees or affiliates may execute transactions in securities mentioned in this report that may not be consistent with the report’s conclusions.

Regulation Analyst Certification (“Reg AC”) — Bhakti Pavani. The views expressed in this report (which include the actual rating assigned to the company as well as the analytical substance and tone of the report) accurately reflect the personal views of the analyst(s) covering the subject securities. An analyst’s sector is the universe of companies for which the analyst provides research coverage. Accordingly, the rating assigned to a particular stock represents solely the analyst’s view of how that stock will perform over the next 12 months relative to the analyst’s sector average.

No part of the compensation of the analyst preparing this report was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such analyst in this report.

Additional disclosures about the sources cited in this article

( Companies Mentioned: GPR:TSX; GPL:NYSE.MKT,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/01/11/mines-updated-mineral-resource-contains-higher-grades.html