A Midsummer Night’s Dream: Buy Precious Metals

Source: Michael J. Ballanger for Streetwise Reports   08/17/2017

Precious metals expert Michael Ballanger discusses the seasonality of gold and silver, and the metals’ relationship with Bitcoin.

Each year since 1987, I have always used the final two weeks of the month of August as a shopping period in a manner not unlike the “Back-to-School” kind only the wares I seek are junior precious metals stocks as opposed to school uniforms, pens, and books. It began after I had been speaking with one of the finest brokers I had ever had the opportunity to know, Edmonton’s late George Milton, whose claim to fame was being the early financier for Bre-X (Not to worry, he and the bulk of his clients were long gone by the time the fraud was revealed). George would tell clients around mid-May to raise cash because after June 1, he would be AWOL. Because there were no cell phones, internet, text messaging or Twitter, that meant that George would be out-of-contact until mid-August and, true to form, on August 15th, he would arrive at the office, open his Rolodex, and begin to call clients. By the time mid-August arrived, the first shares he would buy were the ones he sold in mid-May and amazingly, 90% of those names had fallen 50% (or more) due to the illiquidity and disinterest so typical of the June-July period in the Canadian junior mining markets. He would spend the next two weeks accumulating his list and then watch as the mid-September reversal of fortune arrived with heightened liquidity and interest and prices paid for his late summer shopping spree would advance.

Alas, here in 2017, some forty years after that fateful conversation and initiation of the “Midsummer Night’s Dream” buying opportunity, gone are the days of “going AWOL” for an uninterrupted eight weeks of golf and cottaging free from the irritations of client phones calls. In this new era of instant contact and immediate accessibility, you are always available lest you become either unemployed, redundant, or both. Furthermore, the “edge” of being the only buyer in the last two weeks of August has disappeared with the arrival of buyers all day and night operating from the realm of a data byte or virtual reality network. In other words, machines don’t take holidays so the advantage that once prevailed due to the absence of traders has been eliminated.

chart_1

Nevertheless, I have found over the years that the late August period remains an excellent seasonal entry point for gold and silver investments and as the chart above shows, the September-January period yields the best historical returns for gold and therefore it stands to reason that a basket of gold and silver miners, split judiciously between seniors and juniors makes a great deal of sense as well as a dollop of your favourite “explorco” just to add a little excitement to the mix. In fact, in big bull market periods such as 2002-2007 and 2009-2011, being overweight the “little guys” was a preferable strategy because of the leverage contained in buying 1,000,000 shares of a $.01 stock for ten grand. This year, I am particularly bemused by the total insanity that is prevailing in the gold and silver markets as it pertains to the correlation with other markets such as copper, zinc, stocks, Bitcoin, and the U.S. dollar.

A few weeks back I wrote about the brilliance of the geek squad in creating a non-fiat replacement for currencies that would be off the radar of the banks (both bullion and central) and they did just that with the arrival of Bitcoin. Now trading north of U.S.$4,000, Bitcoin has actually done precisely what gold should have done had it not been for the invisible hand of the bullion banks acting under instructions from the central banks and treasury departments of the G7 nations. And led, I should add, by the U.S. Fed. The genius of creating a surrogate for gold and silver as a means of avoiding the criminal interventions of the elite class falls into a category not to far removed from the invention of the internet or the building of the Great Wall; it remains one of the great frustrations of this era for historians like me that the “inflation hedges of choice” in this period of unprecedented monetary inflation did not include gold and silver. The reasons for that are well-documented by many analysts but it all boils down to one very simple fact: there is nothing out there in the financial universe that can replace PHYSICAL OWNERSHIP of gold and silver. Since possession is nine-tenths of the law, having ownership of real money (gold and silver) is far safer and infinitely preferable to seeing a bitcoin credit on a website or a stock and bond portfolio all held by a bank with no certificates where the only proof of ownership is a computer entry.

chart_2

There is a logical underpinning to my current bullish stance for gold and silver and it lies in the thesis that this ocean of liquidity created around the world was not created from increased productivity or invention; it was created from DEBT. This debt has lifted the all-important stock markets to record highs everywhere and it has also saved the collateral behind the mortgage books of the global banking cartel but in the end, this is an ocean of debt that is going to undergo a day of reckoning. That day occurs when all central banks have to “square up” their books through normalizing balance sheets by selling the assets they acquired with printed currency units, whether euros or dollars or yen. It is at this point that the system seizes up for good sending the digital disaster hedges into a “no-bid” Armageddon where physical ownership is the base requirement for commercial transactions to be completed. Your Bitcoin credit will not buy food or water and you won’t be very happy when the shopkeeper tells you that all credit and debit machines are “down”.

Accordingly, and without trying to go to irrational extremes, I am a buyer of gold and silver at today’s prices because of the very existence of Bitcoin; people preferred to jettison digital cash in favor of Bitcoin ownership (not “possession”). That means that the next major secular target for the Interventionalists is going to be cryptocurrencies because they are rapidly becoming a major threat to “fiat” and as we have all grown to appreciate, the central banks and sovereign treasury departments detest anyone and anything that threatens “fiat” due primarily to the symbiosis fiat provides as the link between sovereign state and banker agendas.

chart_3

Silver has been a relatively lousy performer relative to nearly every other metal residing a mere $3.20 above the 2015 low of $13.62. In that same time period, zinc has advanced from under $0.65/lb to over $1.40/lb, while copper is up from under $2.00/lb to almost $3.00/lb. Year to date, the only commodity I follow which is actually DOWN is silver with the Silver Miner ETF (SIL) up a meagre 1.26%. If you concur with the thesis that physical ownership (“possession”) is the optimal investment alignment, then the inverse correlation between silver and virtually everything else is to be deemed an aberration and the likelihood of a regression to the mean (upward) in the silver price is highly likely.

chart_4

If I like the idea of silver outperforming gold and gold and silver outperforming everything else for the latter part of this calendar year, it follows that the Silver Miners stand a decent chance at breaking out of wedge that goes back to 2015 and being the superstar performer to close out the year. The SIL (Global X Silver Miners ETF) has been trading back and forth from beneath $15 in late 2015 to $52.50 in July 2016 with subsequent zigzag action creating a longstanding wedge formation which has now narrowed to a tight band around current levels. If we can get a close around $35 for a couple of sessions, the upside breakout could be breathtaking so I have decided to grab 50% position in the Oct. $35 calls for $1.00. The breakout from the wedge could easily take this ETF back to $52.50 and the calls to $20 – perhaps not by the third Friday in October but still the optimal “shot”.

chart_5

Notwithstanding the fact that I have seasonality, valuation, and sentiment all working in my favour, Fido was threatening to take a chunk of flesh out of the postman today and despite the fact that he used to be a South Afrikaan police dog, he is usually quite benign when it comes to folks in uniform. This chap that ventured on to our homestead this morning was emanating some very off vibes because all it took was the van door opening and the sound of Eminem rapping some unintelligible song to evoke a Johannesburgian reaction from the beast. That he had the poor git up a tree jumping at his Michael Jordan Nikes was more a function of my early-morning rants at the gold price under $1,275 rather than it was anything the letter carrier had done. After all, these ARE trying times…

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

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Disclosure:
1) Statements and opinions expressed are the opinions of Michael Ballanger and not of Streetwise Reports or its officers. Michael Ballanger is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation. Michael Ballanger 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) 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.
3) 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 courtesy of Michael Ballanger.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17639

Is the Next Gold Mine in Bulgaria?

Source: Streetwise Reports   08/17/2017

While Bulgaria may not be the first country investors equate with gold mining, executives at one TSX Venture Exchange-listed company are sitting on pins and needles waiting for the drill results that could prove their high-grade thesis.

Velocity Minerals Ltd. (VLC:TSX.V), one of the first movers for gold in Bulgaria, has entered into option agreements with Gorbuso-Kardzhali A.D., a private Bulgarian mining company, to earn 50% of the Ekuzya project and 70% of the Rozino project. Historical drilling on the Rozino project suggests the potential of high-grade gold mineralization.

Velocity announced on Aug. 1 that it initiated phase 1 drilling at the Rozino project, which is located within the Tintyava prospecting and exploration license in southeast Bulgaria. The nine diamond drill holes are a part of a larger, 12,000-meter drill program of up to 65 holes.

CEO Keith Henderson told Streetwise Reports, “We have rushed the first drill cores to the lab and are expecting to receive results imminently. This will be the first indication of whether our thesis for high-grade mineralization is correct.”

To recap a little of the history: According to the company, Rozino was first explored in the 1980s by Asenovgrad Geoengineering EAD, a Bulgarian state company that drilled 86 vertical diamond drill holes. “Available drill technology was limited to vertical drill holes, which in the context of steeply dipping zones of mineralization was not a suitable approach,” the news release noted.

The area was then explored in the early 2000s by Hereward Ventures Ltd. and Asia Gold Corp., drilling 55 holes. According to Velocity, “Diamond drilling was angled, but oriented to the northwest, parallel to the predominant outcropping structural trends and therefore less than optimal. In 2005-2006, Asia Gold carried out a structural review and identified a strong northwest control on mineralisation and completed 2 drill holes to test this new idea. Drill hole R-245 was drilled towards the northeast, perpendicular to the newly interpreted northwest control on mineralization, and intersected 68m @ 3.15 g/t gold, including 11.39m @ 8.09 g/t gold.”

According to the company, “Hole R-245 confirmed that mineralization exists between the drill fences and the potential for additional broad intersects of near surface, high grade mineralization located between the existing drill fences is considered to be good to excellent. Velocity’s current drill program is testing this interpretation.”

Velocity’s partner Gorbuso is the only company in Bulgaria that holds a cyanide operating permit, and according to the company, Velocity would have access to its processing plant if the project is developed.

The Rozino project is located about 20 km from Ada Tepa, which Dundee Precious Metals in developing.

Velocity is conducting soil and trench sampling at the Ekuzya project, and expects to begin drilling in early 2018.

Velocity is helmed by an experienced team of mining professionals. CEO Keith Henderson has served in senior roles at Anglo American, Cardero Resource, Dorato Resources and Centenera Mining. Stuart Mills, the vice president of exploration, was a senior geologist for Anglo American, as well as at Lundin Mining, Red Back Mining and Orca Gold. Director Mark Cruise is the CEO of Trevali Mining Corp., and director Daniel Marinov, vice president of exploration at Trevali and a Bulgarian national, served as a senior geologist with Anglo American and Rio Tinto. Exploration manager Valentin Buhov, also a Bulgarian national, has worked for many mining majors including Kinross and Anglo American.

Velocity completed a reverse takeover with privately held 1077076 B.C. Corp. on July 21, 2017. Management and the board hold 47% of the shares and are subject to 36-month escrow terms, 13% are subject to 18-month escrow terms, and 15% are from a recent private placement, leaving about 25% of the shares free trading.

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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. 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 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.
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 interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Velocity Minerals Ltd., a company mentioned in this article.

( Companies Mentioned: VLC:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17637

Canadian Explorer ‘Definitely a Company Worth Watching’

Source: Streetwise Reports   08/17/2017

As the drills turn in Quebec this summer, the results released by one explorer are gaining the attention of several experts.

Balmoral Resources Ltd.’s (BAR:TSX; BALMF:OTCQX) drill program continues to extend the Bug South deposit on the Martiniere property. The company announced in July that the Bug South deposit was extended to a vertical depth of about 385 meters “with a broad intercept of 14.28 meters grading 3.51 g/t gold, including a very high grade interval of 0.46 metres grading 66.60 g/t gold.”

Balmoral CEO Darin Wagner said, “The summer program is now in full swing. It is designed to continue the growth of the Bug Lake gold deposits, while also exposing our shareholders to the broadest range of discovery opportunities since 2014 when the Grasset discovery resulted in significant share price appreciation.”

Wagner also noted that “gold exploration targets throughout the Martiniere Property, and the broader Detour Gold Trend Project, are on tap for drill testing. This includes a number of targets located on the Detour East Property which covers over 20 kilometres of the same geological environment which hosts the multi-million ounce Detour Lake gold mine on adjoining property to the west.”

Sector experts have taken notice of Balmoral’s drill results.

Byron King, editor of Gold Speculator, noted on Aug. 1 that Balmoral “did release several strong sets of drill results in recent weeks. There’s much going on in the field.” He also stated that “Balmoral is an attractive joint venture or takeover target for larger companies. The company is finding gold and building a resource base.”

Louis James, editor of International Speculator, told The Gold Report in May that an “explorer I like is Balmoral. . .[it’s] a pure explorer with people who have track records of repeated success. It has two highly prospective projects right now that I like a lot.”

Brien Lundin, editor of Gold Newsletter, wrote in the July issue that the “picture of a large, dispersed area of gold deposits continues to develop at Martiniere. It will take more drilling to move the needle here, but Balmoral is definitely a company worth watching in the months ahead.”

Balmoral is expected to continue to release results from the summer drill program.

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) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family 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: Balmoral Resources. 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.
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.

Additional disclosures about the sources cited in this article

( Companies Mentioned: BAR:TSX; BALMF:OTCQX,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17636

Six Precious Metal Explorers that May Hit It Big This Summer

Source: Streetwise Reports   08/17/2017

Summer is the season for drilling, and with the uptick in the precious metals market since 2016, companies are finally able to have the budgets to properly explore their prospects, says Brien Lundin, editor of Gold Newsletter and organizer of the annual New Orleans Investment Conference. Positive results can mean a bump up in share prices, and Lundin discusses six companies that have been releasing good news this summer.

The Gold Report: Gold has been trading between $1,200 and 1,300 for a while. What’s your sense of where it is going in the near and middle term?

Brien Lundin: There is this belief in the industry that summer is a down time for precious metals. I went back and analyzed every summer since 2000 to see how gold performed during those summers.

It’s somewhat arbitrary because you can pick your beginning and end points for the summer season. But using June 1 through Labor Day Weekend, early September, as a proxy for the summer, gold more often than not, and in fact in a majority of the cases, ended the summer higher than it began. Within that period, though, it was not uncommon for gold to experience a steep drop and then a recovery. Typically, that drop has occurred during the month of July. So, what we’ve seen so far this summer really conforms to the historical record. And, in fact, there’s a good chance that gold will end up higher at the end of the summer if it continues the rally it’s currently in.

With that said, the metal has, in recent days, come back a little bit, thanks to an easing of tensions in the North Korea conflict. Still, I get the feeling that gold has some legs underneath it here and has a positive bias, in fact a bull market bias, wherein investors will continue to interpret new news as bullish for the metal. I think we’re on a slow but steady uptrend going into the fall from this point. Therefore, it’s a great opportunity for investors to use the next season’s typical strength to their benefit.

Find more information on the New Orleans Investment Conference
October 25-28, 2017

here

TGR: What the trend for mining companies in the summer?

BL: The mining companies, in particular the junior explorers/developers, are typically working away during the summer. In the Northern Hemisphere, it’s really the exploration season of the year. So a number of these junior companies are releasing news during the summer and actually enjoying increases in their share prices if they’re releasing good news. And the good news there is that many of them are getting positive drill results this summer because they finally had the budgets to go out and properly explore their prospects.

TGR: Do you have companies that you’d like to talk about that fit the bill?

BL: One company that’s made headlines recently is GT Gold Corp. (GTT:TSX.V)—”GT” standing for Golden Triangle—a company that had a quite exceptional gold-in-soils anomaly that it started drilling late this spring. It’s a company that I started recommending in February because of that very strong gold anomaly. I was confident that it was going to hit something and, sure enough, it did. It got some significant high-grade hits at shallow depths over fairly large intersections and has really been the darling of the exploration season so far.

Its share price has about tripled since it made the news, and it’s up nearly four times since our recommended entry price in Gold Newsletter. That has stolen the headlines and created a lot of excitement, not only for gold exploration plays in general but, also, exploration companies focused in the Golden Triangle area of British Columbia.

Another company that has released some good results but has not yet gotten the kind of reaction that GT has is Klondike Gold Corp. (KG:TSX.V). That’s another company that I’ve been very positive on that has been drilling and is getting bulk tonnage-type drill hits. It has, in the past, hit high-grade gold intersections on its property in the Yukon, but they were very narrow intersections. The company was searching for a lower-grade but larger-tonnage type of deposit on its property position, which is located, of all things, in the Klondike and for which it is looking for a lode source for a lot of the gold that was discovered in the streams of the Klondike region.

It has, in fact, begun to hit this large-tonnage, lower-grade resource in its drilling. The target that it has is potentially kilometers in length. So it has the potential to make a lot more news going forward, and I think the investing public will start to appreciate the significance of what it has hit as it continues to deliver these kinds of drill results.

TGR: Because the project is so far north, would its costs be prohibitively high, dealing with the area’s extreme climate?

BL: That’s usually a concern for the Yukon, but the infrastructure in the Yukon has been improving and is set to improve over time, as some new roads and powerlines are put in for various other mining projects.

But for Klondike Gold in particular, infrastructure is not a problem. It gets to drive into its site from Dawson City. It actually has an auto parts store within easy driving distance from its camp. So infrastructure is actually a positive for Klondike Gold.

TGR: What other companies would you like to talk about?

BL: One of the things we’ve been focusing on in Gold Newsletter has been exploration plays. For our July issue, we focused on about a half-dozen companies that were finally able to raise enough money, thanks to the recovery in gold in 2016, to get mobilized and perform decent drill programs on some outstanding targets. We recommended five or six of these companies in our July issue, and the news is starting to come in from a number of them. As I mentioned, GT Gold and Klondike made some news.

But we also like Tower Resources Ltd. (TWR:TSX.V), which is in British Columbia and is currently drilling one of three projects. At its Rabbit North project, it’s hitting porphyry mineralization and seems to have figured out the mineralizing system there, and is more easily and accurately able to target the mineralization. So I expect more and better news to come out of Tower. And as I mentioned, it also has two other projects that it will be exploring this summer, one of which should be drilled as well.

Another company that I like is Adamera Minerals Corp. (ADZ:TSX.V), which is drilling right now in Washington state. It has a number of prime geophysical and geochemical anomalies that are coincident with each other. Interestingly it also flew geophysical surveys over producing mines in the area and got identical results to the surveys over its drill targets. So it’s hitting these targets right now with the drill bit, and I expect really good news from it as well.

Another company that’s drilling right now that I like is Precipitate Gold Corp. (PRG:TSX.V). It turned out its first drill hole results this season came from one of its lower-priority targets, primarily due to drill logistics. Therefore, those results came out first, and they weren’t nearly as spectacular as one might hope. Decent, but not spectacular. So the share price took a hit.

However, the next target that Precipitate is drilling right now is a higher-priority target, and I have a feeling that the company is going to surprise the market with really good drill results from that program. So that’s another one that I like.

Precipitate’s project is next to the holdings of GoldQuest Mining Corp. (GQC:TSX.V) in the Tireo Belt of the Dominican Republic, a newly developing gold trend that’s not quite understood just yet by geologists. But it’s apparent from the Romero discovery by GoldQuest, the hits by both GoldQuest and Precipitate on other targets and the geological work that’s been done that this is an area of the earth that’s, for lack of a better term, quite messed up. There’s a lot going on there, and at least one world-class deposit has been discovered in the region so far. It’s very likely that there are one or two others lurking.

TGR: Have you seen some positive results from any other companies?

BL: There’s a company that I just recommended this month called Ashanti Gold Corp. (AGZ:TSX.V), which put out some outstanding drill results from its project in Mali. The key here is that it has drilled only a couple of pods of this mineralization. It has about six such pods identified. So, if it gets the similar results on the next four pods of mineralization, this is a company that could develop well over 1 million ounces of gold in an area that’s surrounded by very large mines and great infrastructure. It’s a company with a market cap under $15 million, that I think is going to make a lot of news going forward.

TGR: Is the jurisdictional risk in Mali an issue?

BL: I think it’s something that has been put behind it. There were some issues a couple of years ago with Mali, but there are a number of very large gold mines operating in the area. I don’t see it as a big issue going forward or one that isn’t balanced by the commensurate potential rewards from a big discovery in the area.

TGR: Brien, every October you run the New Orleans Investment Conference. Can you tell us about your plans for this year?

BL: It’s going to be a great year for the New Orleans Investment Conference, which will be held Oct. 25-28. This will be our 43rd anniversary. It is the big annual event for investors in the resource industry, particularly precious metals. As a result of the strength since 2016 in the precious metals, we’ve seen a lot more response from both exhibiting companies and attending investors to this year’s event. We sold out of our hotel last year, and we anticipate that the same will happen this year. So there is a sense of urgency for investors to register.

We think this year’s conference is going to be one of the most rewarding events in our long history. We’re featuring Tucker Carlson as a new speaker. We also are featuring Charles Krauthammer again. He’s been a regular for the last five years or so and always comes and shares his views personally with our attendees.

We have an exciting new speaker this year, Robert Kiyosaki, who has a huge following in the investment and self-help communities. We have Jonah Goldberg from National Review and FOX News. We have Judy Shelton, who is a longtime gold advocate and an economist who’s on the shortlist from the Trump Administration to be on the Federal Reserve Board. So we’re getting ahead of the game, as it were, on that score. Judy will provide an opportunity to give attendees an inside look into what could be a new and important force on the Federal Reserve Board.

We also have Doug Casey, Peter Schiff, Dennis Gartman, Rick Rule, most of the big-name experts in precious metals and resources from the world over. We also cover economics and geopolitics, as you can tell from our speaker list. And if there’s a one-stop shop for getting the most powerful strategies and the hottest tips in precious metals and mining stocks, this is the place to go.

TGR: Thanks, Brien.

New Orleans Investment Conference information and registration is available here.

With a career spanning four decades in the investment markets, Brien Lundin serves as president and CEO of Jefferson Financial, a highly regarded publisher of market analyses and producer of investment-oriented events. Under the Jefferson Financial umbrella, Lundin publishes and edits Gold Newsletter, a cornerstone of precious metals advisories since 1971. He also hosts the New Orleans Investment Conference.

Want to read more Gold Report interviews like this? Sign up for our free e-newsletter, and you’ll learn when new interviews and 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) Patrice Fusillo conducted this interview for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this interview 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) Brien Lundin: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Klondike Gold, Tower Resources, Adamera Minerals and GoldQuest Mining. I, 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 interview: Precipitate Gold is an exhibitor at this year’s New Orleans Investor Conference. I determined which companies would be included in this article based on my research and understanding of the sector. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.
4) The interview 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 interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Adamera Minerals, a company mentioned in this article.

( Companies Mentioned: ADZ:TSX.V,
AGZ:TSX.V,
GTT:TSX.V,
KG:TSX.V,
PRG:TSX.V,
TWR:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17635

Good News, Bad News and Encouraging News

Source: Adrian Day for Streetwise Reports   08/16/2017

Money manager Adrian Day presents updates on three precious metal companies in his portfolio.

Nevsun Resources Ltd. (NSU, NY, 2.12) fell sharply after it announced a decision to operate a smaller, short-life open-pit at the troubled Bisha mine in Eritrea, cutting the mine-life by 50% to four years. In addition, a Prefeasibility Study (PFS) on Timok in Serbia was pushed back from September to “first quarter.” Though it appeared that there was no good news—one analyst called it a “kitchen sink” strategic update—each decision had a sound basis, leaving Nevsun, in time, a better company.

Eritrean operations scaled back, but still good cash flow
The metal recoveries at Bisha, which have caused the company and the stock difficulties since the start-up of the third phase last fall, are now apparently improving and the company called its new plan at “highly executable and arguably somewhat conservative.” Although it continues to look at ways of extending the mine life, the small mine size is unlikely to change; the “point of no return” on reversing the decision is the end of this year. Bisha is expected to continue to generate free cash flow for the rest of its mine life, after an investment this year of $24 million.

Timok is a priority
On Timok, acquired when it bought Reservoir Minerals, there are several milestones ahead, including the updated Preliminary Economic Assessment in October; commencement of the decline construction by the end of the year; and a PFS in the first quarter of 2018. The PEA is at a high level, the company said, so completing the feasibility should come quickly after that with production on track for 2021. This is for the upper zone. Underground work with Freeport, the company conceded, is progressing more slowly than hoped.

Although the company with its objective of building a strong multi-mine company is on the lookout for opportunistic acquisitions, and it is undertaking brown- and green-fields exploration in both Serbia and Eritrea, the priority is on preserving its cash—currently $171 million with no debt—for the construction of the mine in Serbia. “Timok is absolutely our top priority,” said new CEO Peter Kukielski.

Nevsun is a buy here if you do not own it (or perhaps add to your position, and sell some after 31 days to capture a loss on your other holdings.)

Give with one hand, take away with the other
Yamana Gold Inc. (AUY, NY, 2.69) had a strong second-quarter with production up and cash costs staying under $700/ounce. However, as we have come to expect with this company, every piece of good news is offset by bad. This time, the company announced it would paying $75 million to settle a dispute with the Brazilian tax authorities. Though the decision to settle is probably a good one, it will likely have to tap it credit line to make the payment, given its anticipated high capital program. It is also accelerating its sale of non-core assets to raise cash for this program.

We are frustrated with Yamana, which can never seem to fulfill its potential, and seems to have a cupboard full of cockroaches to continually set back any progress. This, plus the rally in the last two months from a low of $2.23, makes us reluctant to buy. But the valuation—20% discount to its peers on a price-to-NAV basis—with Yamana the cheapest of the large miners make us reluctant to sell. We are holding.

Another strong quarter for Franco
Franco-Nevada Corp. (FNV, NY, 77.65) had a strong quarter. Though “gold equivalent ounces” were slightly down on the quarter, they were up 9% from the corresponding quarter a year ago, and the quarter set new records on many financial metrics, including revenue and net income. Precious metals continue to dominate, at 92% of revenues, with 71% from gold.

Following exercise of expiring warrants, the company has $600 million cash, is debt free, and has about $100 million in securities plus over $1 billion available on its line of credit, putting it in an unrivalled position for new acquisitions. $200 million of the cash will go towards development of Cobre Panama, as agreed, for a start-up in 2018/2019. Franco said it is on the lookout equally for minerals, including gold, and oil & gas.

Growth bump ahead, followed by decade of no decline
With the start-up of Cobre Panama, Franco should see a strong boost in revenue growth. Once that mine is fully operational, around 2021, Franco would see 10 years ahead of stable business without any new assets, putting it in a very strong position

Franco management noted that the company would be subject to the same offshore tax issue that Wheaton Precious Metals is fighting, with about 44% of its EBITDA generated offshore. Most of its offshore streams are recent, however, so any back taxes would be relatively low; the larger impact would be on its future business.

Franco is more expensive than its peers on a valuation basis, but given the diversified portfolio, the decade-long stability, and the balance sheet, this is justified. Franco is a core holding for us, and we buy again on any pullback.

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.”

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) Adrian Day: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Franco-Nevada and Nevsun Resources. 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: Nevsun Resources, Franco-Nevada and Yamana 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 sponsors of Streetwise Reports: Wheaton Precious Metals Corp. 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.
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 interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Franco-Nevada Corp. and Nevsun Resources, companies mentioned in this article.

( Companies Mentioned: FNV:TSX; FNV:NYSE,
NSU:TSX; NSU:NYSE.MKT,
YRI:TSX; AUY:NYSE; YAU:LSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17634

Silver Producer Moves Newly Acquired Argentinean Projects Forward

Source: Streetwise Reports   08/15/2017

Andrew Kaip, an analyst with BMO Capital Markets, reviewed this senior mining company’s Q2/17 financial highlights and project milestones.

According to an Aug. 9 research report, Pan American Silver Corp. (PAAS:TSX; PAAS:NASDAQ) achieved an earnings per share beat in the second quarter. “Adjusted EPS of $0.18 was substantially higher than our forecast of $0.07 and consensus of $0.10 on the back of higher revenue and lower costs,” Kaip wrote.

The silver company’s Q2/17 operating cash flow of $43M was in line with BMO’s estimate of the same amount “as a result of negative working capital adjustments and deferred taxes,” reported Kaip. Free cash flow of $1M, however, missed BMO’s expectation of $3M. Pan American had $161M in cash as of June 30, 2017.

During the quarter, Pan American produced 6.3 Moz silver and 38 Koz gold, both in line with estimates, Kaip said. “Revenue beat our estimates on higher-than-expected silver and copper sales,” he added.

Pan American reiterated production guidance and lowered its cash cost guidance to $5.50–6.50/oz from $6.45–7.45/oz “as a result of solid cash performance in H1,” wrote Kaip.

As for capital expenditures, the report indicated the silver producer plans to spend $12.5M on development of Joaquin and COSE, its newly acquired projects in Argentina, and $5M on finishing the Dolores expansion. “Presently, the company is advancing two major expansions at Dolores and La Colorada, expected to grow its production profile in 2017,” the analyst said.

With respect to those efforts, Kaip’s research also revealed the advancements Pan American made during Q2/17:

1. At Dolores, it finished “construction of the pulp agglomeration plant and commenced commissioning. Initial underground stope mining is expected to begin before year-end,” Kaip noted.

2. At La Colorada, it reached production of 1,800 tpd in June, said Kaip, and “development of the underground mine is advancing ahead of plan.”

About BMO’s investment thesis for Pan American, Kaip said, “PAAS remains a higher-quality name amongst silver miners, but we believe recent share performance incorporates the execution of its Mexican expansions and the steady three-year production outlook. Beyond these milestones, the company offers limited catalysts, as longer-dated projects require firmer timelines and deliverables to establish a meaningful pipeline.”

BMO Capital has a Market Perform rating and $17.50 price target on Pan American Silver. The company today is trading at around $15.96.

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 owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family 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 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.
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.

Additional disclosures about the sources cited in this article

( Companies Mentioned: PAAS:TSX; PAAS:NASDAQ,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17627

Bet on the Jockey, not the Horse

Source: Bob Moriarty for Streetwise Reports   08/15/2017

Bob Moriarty of 321 Gold explains why in some cases—and particularly in the case of this explorer—you don’t need to know all the details, you just need to know the geologist.

I first wrote about Aurania Resources Ltd. (ARU:TSX.V) back in March. The shares were $1.25 then and are $2.36 now. Keith the Barron did a private placement four months ago. The shares come free trading in a week. It may be the last chance to jump on this wagon.

Over the past sixteen years I have visited a lot of projects. And I’ve met a thousand or more geologists. Everyone has their own idea of whom the best are at anything but after having met most of the players in the industry, I’m convinced I know who are in the top five.

In no particular order you would have Peter Megaw, who pretty much invented mining in Mexico. The mining industry began a slow death when the Mexican Revolution began around 1910. By 1939 socialism in the country had pretty much destroyed the mining industry as investment capital dried up.

Dr. Megaw saw the potential in the country and spent 25 years educating himself on various deposits. When Mexico finally realized it needed investment capital from abroad, he founded and helped dozens of companies sink roots in Mexico. He’s the brains behind MAG Silver Corp. (MAG:TSX; MAG:NYSE.MKT), Excellon Resources Inc. (EXN:TSX; EXLLF:OTCPK) and many others. When someone calls me and tells me he is on board, I know everything I need to know about the deposit. I don’t have to know anything about the vehicle, all I need to know is who the jockey is.

Quinton Hennigh is the same. He’s the brains behind Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX). They look as if they have found one of the biggest gold deposits in Australia in history, in an area where gold has been mined for wall over 130 years. He recognized the potential for a massive discovery 20 years ago in Witwatersrand-age basins, and only lately has proved it. If Quinton Hennigh signs off on a project or a company, you need to know no more.

If you ask anyone in the industry about who was behind the concept of mining massive but low-grade copper porphyries, the answer would be David Lowell. He has made more major discoveries all over the world than anyone I know, including Escondida, the largest copper mine in the world, and Pierina. David Lowell literally is Mr. Copper. David Lowell finds giant deposits. If he is riding, you need to belly up to the betting window.

I haven’t met every single geologist in the world so I won’t list my five best. I have to keep at least one slot open, but certainly one of the best gold projects discovered in the last 20 years would have to be Keith Barron’s, who restarted mining in Ecuador with his discovery of the Fruta del Norte gold mine, with 13.7 million ounces of high-grade gold.

Keith’s company, Aurelian, sold the deposit to Kinross Gold Corp. (K:TSX; KGC:NYSE), but the government in Ecuador turned both stupid and greedy at the same time, as governments do on a regular basis. Kinross gave the project away to Lundin Gold Inc. (LUG:TSX) in 2014.

Ecuador turned smarter and more sober lately. They missed the millions of dollars mining companies poured into their economy. Led by SolGold, juniors are hitting home runs out of the park again. In the past 18 months SolGold plc (SOLG:AIM) has rocketed from £.03 to £.47, a 1,400% advance. Even the government of Ecuador is waking to the possibility of earning money through royalties.

Keith Barron is back with yet another venture in Ecuador. This time he’s looking for the two missing lost cities of gold. No kidding. If it were anyone but Keith Barron I would be convinced someone had been hitting the cerveza a little too hard. After all, the Lost Cities of Gold? Are you kidding me?

Keith is doing a wonderful job of communication and has put out five videos telling the story. It’s not crazy talk; there were seven major gold production areas in Ecuador under the Spanish. Five have been located. In two, the locals ran the Spanish off and told them not to come back any time soon. The Spanish didn’t, but the two locations did exist and need someone to find them.

When I heard the story, I bought shares in Aurania. No one on earth knows more about Ecuador and the potential than Keith Barron. You and I don’t need to know much as long as we know him. Let him do all the thinking and hard work.

I own shares in Novo Resources and Aurania and both companies are advertisers. Naturally I am biased. Do your own due diligence.

Aurania Resources
ARU-V $2.36 (Aug 14, 2017)
22.8 million shares
Aurania 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: Auriana and Novo Resources. Auriana and Novo Resources are advertisers 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 sponsors of Streetwise Reports: MAG 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) 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.
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: ARU:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17628