Fri, 17 May 2019

Precious Metals Miner Reevaluates Nevada Operations After Q1/19 Miss

Source: Streetwise Reports   05/17/2019 The reasons for the miss and possible paths forward were outlined in a ROTH Capital Partners report. In a May 9 research note, analyst Jake Sekelsky reported that ROTH Capital Partners reduced its target price on Hecla Mining Co. (HL:NYSE) to $3 per share from $4 after the company suspended operations at its Nevada operations. The stock was trading at around $1.51 per share on May 16. Management made this decision after issues at the Fire Creek mine resulted in Q1/19 results that came in below expectations. The primarily problems were "the presence of water that limited access to certain areas of Fire Creek as well as poor conversion of resources to reserves," explained Sekelsky. He indicated that Hecla intends to "re-evaluate operations and outline a viable longer-term operating plan." Until then, it will hold off on providing production and cost guidance for those assets. For Q1/19, Hecla reported a net loss of $0.05 per...
Thu, 16 May 2019

St. Barbara's Acquisition Offer for Atlantic Gold Highlights 'Valuation Gap'

Source: Streetwise Reports   05/16/2019 The valuation gap between Australian and Canadian producers, highlighted by a recent takeover offer, is reviewed in a BMO Capital Markets report.In a May 15 research note, BMO Capital Markets analysts Brian Quast and Andrew Kaip wrote that St. Barbara Ltd.'s (SBM:ASX) recent offer to acquire Atlantic Gold Corp. (AGB:TSX.V) exemplifies that "the valuation gap between Australian and Canadian producers creates an environment ripe for consolidation." He added that "we view the consolidation of Australian and Canadian midtier miners as being inevitable." The analysts pointed out that today's valuations favor Australian gold producers, which are trading at a premium to Canadian producers on a price to net present value basis and a price to cash flow per share basis. As such, the Australian companies are nicely positioned to make accretive acquisitions of Canadian assets. Conversely, Canadian producers have been struggling recently....
Thu, 16 May 2019

BHP Joins Forces with Prospect Generator to Explore Mexican Copper Project

Source: Maurice Jackson for Streetwise Reports   05/16/2019 Dr. John-Mark Staude, president and CEO of Riverside Resources, sits down with Maurice Jackson of Proven and Probable to discuss his company's just-announced exploration funding agreement with BHP.Maurice Jackson: Joining us for a conversation is Dr. John-Mark Staude, the president and CEO of Riverside Resources, Where Knowledge is Golden. Riverside Resources Inc. (RRI:TSX.V; RVSDF:OTCQB has some breaking news coming from its corporate offices in Vancouver that shareholders should note. In the last interview, Dr. Staude, you addressed the five C's that will be catalysts in 2019 for Riverside, and one of them was copper, which will be germane for today's discussion. Dr. Staude, you have some groundbreaking news. What would you like to tell shareholders? Dr. Staude: Riverside is so excited! We've now completed an exploration funding agreement with BHP. This agreement is at least two years long, with funding...
Wed, 15 May 2019

Explorer Releases High-Grade Assays at Montana PGE Project

Source: Maurice Jackson for Streetwise Reports   05/15/2019 Michael Rowley, president and CEO of Group Ten Metals, speaks with Maurice Jackson of Proven and Probable about the results of recent drilling at the Stillwater West project that delivered Platreef-grade mineralization.Maurice Jackson: Joining us today is Michael Rowley, president and CEO of Group Ten Metals Inc. (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE), which is known for platinum, palladium, nickel, copper and cobalt in the Stillwater district in Montana. Reader should note, Group Ten Metals is on hot streak as far as quantity and quality news flow! The company continues to deliver exciting results and information from the target areas identified at the 25-km flagship Stillwater West Project. And what we are seeing is not just mineralization, but rather, high-grade mineralization. The team must be eagerly anticipating the upcoming exploration season. We just featured Group Ten Metals on our program on the 20th...
Tue, 14 May 2019

Nevada Copper Moves into the Sweet Spot of Investing

Source: Bob Moriarty for Streetwise Reports   05/14/2019 Bob Moriarty of 321 Gold profiles a company with a Nevada project that is expected to begin production by the end of the year.I've written about Nevada Copper Corp. (NCU:TSX; NEVDF:OTC) in the past. The world has only a ten-day supply of copper on hand and that all by itself should move the price of both copper and Nevada Copper higher. Alas, in the short term the price of copper has declined. The company maintains that they remain on track to actual production in Q4 of 2019. A recent article in mining.com revealed a major step forward as they showed a $115 million line of credit from a German bank, a $40 million private placement and off-take agreements with two European metal companies for a working capital agreement worth an additional $35 million. The sweet spot of investing is to buy into a company just as they ease into production. The sweetest spot in investing is when the commodity that company produces...
Tue, 14 May 2019

Why Is the CEO of Golden Triangle Junior Scottie Resources So Excited?

Source: Peter Epstein for Streetwise Reports   05/14/2019 Brad Rourke, CEO of Scottie Resources, speaks with Peter Epstein of Epstein Research about his company's major land acquisition in British Columbia's Golden Triangle.Scottie Resources Corp. (SCOT:TSX.V) is a lesser known Golden Triangle (northern BC, Canada) gold junior, who's ship may have just come in…. Typically, when the word, "blockbuster" is used, it refers to drill results. In this case I refer to Scottie's recently announced option on a sizable (>1,500 hectares) piece of property (the Summit Lake claims) surrounding its existing 100%-owned Scottie Gold Mine property {see map below). Even before this announcement, Scottie seemed like a natural takeout target for Ascot Resources (TSX-V: AOT), [C$160 million market cap]. (Note: the company announced the intention to raise C$1.0 million in an equity capital raise on May 13th.) Ascot acquired IDM Mining and its Red Mountain project in March, and the...
Mon, 13 May 2019

A Mind Reader's Guide to the Global Markets Galaxy: 'Surreal'

Source: Michael Ballanger for Streetwise Reports   05/13/2019 Sector expert Michael Ballanger muses on the effects of Twitter and political maneuvers on the markets, and specifically on a favorite gold explorer.I have a confession to make: There are no free markets anymore; there are only interventions. Of course, I bow to Gold Anti-Trust Action Committee (GATA) cofounder Chris Powell, who coined that brilliant phrase a few years ago, because it was certainly my exposure to GATA in 2005 that changed my perception of the insidious role of the bullion banks in controlling price and sentiment. That, in fact, has since been expanded to include not just gold and silver but LIBOR, Fed funds, corporate bonds and, finally, stocks. The delivery method used to be one of the hired mouthpieces on CNBC, like former reporters Charlie Gasparino or Maria Bartiromo, but both have moved on and were replaced not by reporters with a "scoop," but rather central bank governors themselves....
Fri, 10 May 2019

In Q1/19, Royalty, Streaming Firm 'Delivers Even in a Poor Gold Market'

Source: Streetwise Reports   05/10/2019 A summary of the company's first quarter results were provided in an iA Securities report.In a May 9, research note, iA Securities analyst George Topping reported that with a strong Q1/19, Franco-Nevada Corp. (FNV:TSX; FNV:NYSE) "continues to demonstrate that it can deliver even in a poor gold market." Topping highlighted that the company achieved a beat during Q1/19 with respect to gold equivalent ounces (GEOs) added to its portfolio, EBITDA and cash flow per share (CFPS). GEOs totaled 122,000 (122 Koz), exceeding iA's forecast of 105 Koz and representing a 16% quarter-over-quarter (QOQ) increase. Outperformance in Latin America and Canada drove this result. EBITDA came in at $141 million, compared to consensus' estimate of $132 million. CFPS was $0.72 whereas consensus had projected $0.65 per share. Q1/19 revenue for Franco-Nevada was $180 million, up 13% QOQ. The recovery continues at Candelaria, and Cobre Panama is...
Fri, 10 May 2019

Silver Miner's 'Poor Q1/19 Results Drive Quick Management Action'

Source: Streetwise Reports   05/10/2019 The company's first-quarter results and its reaction to them are outlined in a ROTH Capital Partners report.In a May 6 research note, analyst Joe Reagor reported that ROTH Capital Partners lowered its target price on Endeavour Silver Corp. (EDR:TSX; EXK:NYSE; EJD:FSE) to US$2.90 per share from US$3 after adjusting its estimates following release of the company's Q1/19 financial results. Endeavour's current share price is about US$1.86. The reduced target is due to the "poor Q1/19 financial performance" of the company, which impacted ROTH's estimated valuation. Reagor described Endeavour's Q1/19 results as "mixed but skewed to the negative side." Revenue was a beat at $29.1 million versus ROTH's forecast of $28.4 million. However, earnings per share at $0.02 fell short of ROTH's expectation of $0.10. Unhappy with the weak first-quarter numbers, Endeavour's management took "swift action," Reagor noted, instituting measures...
Thu, 09 May 2019

Fund Manager Reveals His Top Ten Precious Metals List

Source: Streetwise Reports   05/09/2019 Ralph Aldis, portfolio manager at U.S. Global Investors, in this interview with Streetwise Reports, talks about movements in the gold market, why precious metals producers are doing better than explorers and developers, the funds that he manages and companies on his buy and sell list.Streetwise Reports: Ralph, gold has been trading within a relatively narrow range around $1,300 over the last several months. What's your outlook for the metal? Ralph Aldis: Longer term, I do think we're going to see a higher gold price. As for the near-term factors that have been a hindrance, many experts have a fairly positive view that this could be the right time for gold given current global geopolitical conditions where you don't know what could happen, especially with the rise of Populist leaders. But I think the current overshadowing factor on the gold price has been Venezuela. Recently there was a news story that Venezuela was said to...
Wed, 08 May 2019

Pundits Weigh In on Bob Moriarty's 'Basic Investing in Resource Stocks'

Source: Streetwise Reports   05/08/2019 The consensus is Bob Moriarty's book imparts valuable knowledge and can save investors from making costly mistakes. Bob Moriarty, veteran resource investor and founder of 321 Gold and 321 Energy, is known for speaking his mind, something that he does on his websites and in his books. His latest book, "Basic Investing in Resource Stocks: The Idiot's Guide," has made Amazon's best seller list for commodities trading. In this book, Moriarty dispenses advice for people interested in investing in the resource sector, an area where he has over 50 years of experience. Pundits have been reading and sharing their opinions on the book. Fund manager Frank Holmes, CEO of U.S. Global Investors, notes that "perhaps what I admire most about Basic Investing is how refreshingly open it is. Bob doesn't mince words, and he's more than willing to share what he describes as his own past errors so that readers might learn from them. (To be perfectly...
Tue, 07 May 2019

Fund Manager Provides Updates on Nearly a Dozen Companies

Source: Adrian Day for Streetwise Reports   05/07/2019 Fund manager Adrian Day reviews a handful of non-resource companies and provides updates on a number of gold companies in his portfolio.Kingsmen Creatives Ltd. (KMEN:SI, 0.555), designer and manufacturer of high-end retail stores and more, is one of those companies whose very business is under threat by the internet. Kingsmen, however, has armor, a shield and a sword to defend against and attack the threat. Kingsmen recognizes the threat (always a good start) and is developing strategies to enable the business to grow in the new environment; it talks of its "transformation journey." It has kept its fixed costs low, enabling it to be nimble in response. The balance sheet is strong, and the stock inexpensive. In all its major divisions, Kingsmen is undertaking exciting and creative initiatives. In retail, it emphasizes the high end, which has been less vulnerable to internet competition. It has moved into the...
Tue, 07 May 2019

Explorer Reports Blockbuster Copper Intercept

Source: Peter Epstein for Streetwise Reports   05/07/2019 Peter Epstein of Epstein Research homes in on recent high-grade assay results at this company's Saskatchewan project.Rockridge Resources Ltd. (ROCK:TSX.V) is a fairly new mineral exploration company focused on the acquisition, exploration and development of mineral resource properties in Canada. Its focus is copper and base metals. More specifically, base, green energy and battery metals, of which copper is all three! Not just any place in Canada, world-class mining jurisdictions such as Saskatchewan. And, not just good jurisdictions, but in mining camps with significant past exploration, development or production, in close proximity to key mining infrastructure. The company's flagship project, Knife Lake, is in Saskatchewan, Canada, (ranked third best mining jurisdiction in the world) in the Fraser Institute Mining Company Survey. The project hosts the Knife Lake deposit, a near-surface, (high-grade copper)...
Mon, 06 May 2019

Generation Mining Options Giant Palladium/Platinum Project

Source: Bob Moriarty for Streetwise Reports   05/06/2019 Bob Moriarty of 321 Gold profiles a young company that he sees as a pure call on the price of platinum and palladium.In mid-April Generation Mining Ltd. (GENM:CSE; GENMF:OTCQB) signed a Letter of Intent (LOI) with Sibanye-Stillwater (SBGL-NYSE ADRs) to obtain up to 80% of the Marathon PGM project near Marathon, Ontario. At the end of 2017 Sibanye reported resources of 730 million pounds of copper and 4.3 million ounces of palladium/platinum and some gold. At prices back in 2017 the company viewed the Marathon project as uneconomical but realized that it they could drill and find the feeders to the system, it could be economic. Palladium has been on a roll lately jumping to a historic high of about $1600 before correcting back to the current $1331. Platinum on the other hand has been settling back to historic lows against palladium, gold and silver. A new resource junior named Generation Mining (GENM-C) started...
Mon, 06 May 2019

Subliminal Capitulation

Source: Michael Ballanger for Streetwise Reports   05/06/2019 Sector expert Michael Ballanger suggests investors "never underestimate the replacement power of stocks within a Fed-induced credit bubble" and provides other observations on the markets. Looking back at the events of last week, the S&P 500 finally took out the October highs at 2,941 intraday, making the 2018 bear market one of the shortest on record at 93 days (Sept. 21–Dec. 24). You will recall that I wrote in early January that the action of the Santa Claus rally (positive) and the action of the First Five Days rule (positive) was finally confirmed by the January Indicator (positive), setting up new highs for 2019 (which was right). I also said that I expected a retest of the December lows (wrong) and a pullback from the 200 daily moving average (dma) in February (wrong) and that Goldman Sachs was headed back to $150 (wrong) (at least so far). Look at these charts. Can any of you honestly see any difference?...