Golds next bull run? What to buy?Gold looks to be headed higher even with a strong dollar so what are the best ways to play the next bull run in gold? I know Travis has (SAND) in his portfolio but I’d like to know his thoughts as well as yours. Do long term call options make sense for more leverage? I’d like to know what others who believe gold is going higher are buying and what worked best the last time gold reached new highs. Thank you in advance for your input. JB
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
frahman…Rickards…Gold…
I think that it is very telling that support for gold has spilled over strongly in mainstream
newsletters and advisories. Before a few months ago, you had a small core of hard money advocates like Casey and Rickards. But now mass appeal mainstream advisors like Stansberry, Leeb, and many others are coming out in favor of gold and silver vehicles as investments and security. I got a spam email from Stephen Leeb titled “GOLD STOCKS ARE SOARING..WHY AREN’T YOU BUYING ?”
Yes, and though I very rarely watch financial news these days, when I do they’re very likely to be mentioning criticisms of central planning impotence or failures – criticisms which were treated like crazy talk not that long ago when I’d watch Blomberg up to six hours a day. Trish Regan became my fave biz anchor when she had the guts to have Jim Rickards on her show while he was still being dismissed by most others there. (She’s better off now on FBN where she can opine truly unrestrained.)
Too many in the professions (law, finance, medicine…) have always profited by deliberately creating complexity, which makes it easy to obfuscate and hide what they’re doing, then pretend to be the only ones who ” know.” But actually most answers are simple, causes tend to be very basic and uncomplicated. Truth can only be suppressed for so long.
Well put.
and Walter the Cronkite says This is the Financial News at 8:59 pm
Truth can never be suppressed. All u need is 2 c
And all answers r simple if u understand the basics… a great physcist said that once, and it wasn’t me
Hi Sharon Schreiner, did u get a like??or2
I think a PM bull market has begun mainly b/c the public is gradually realizing central banks can only do so much, and are running out of bullets. Unfortunately there’s no wide agreement regarding what fiscal policies are needed, even though even Fed members have stated that’s the real problem, and despite how obvious this should be based upon global economic history. But no one should expect a smooth ride upward as governments & central banks and most in the finance sector who depend upon selling us only paper assets will continue do everything in their power to suppress the idea of PMs as money. When have people in power ever given up the power of currency creation/control unless forced to?
I’m no expert on mining stocks like others here, but do know that calm & patience will be required for anyone who wants to get the most out this sector. The PM paper market is heavily manipulated, shorts & short-covering have their severe but “short” term effects, and the huge carry trade effects on all markets have to be considered – here’s a good article on that, though probably most following this thread already are well aware:
http://www.marketwatch.com/story/what-is-really-moving-stocks-and-gold-2016-04-28#:sLKtpqMalLYoWA
One thing I can gurantee you…I am not a mining expert !
But I see it as you do…the Powers That Be would prefer to be able to print or create as much currency as they wish, out of thin air, without having the incovenience of having to back it up with anything of value.
They will obfuscate. They will deny. They will suppress. But it will only work for so long.
This has happened over and over again all over the world during all periods of recorded history. It always ends the same way…default, devaluation, destruction of the currency and damage to those that are holding it and relying on the full faith and credit of whomever.
Well, at least u r not a mining exp.
do u c as I c?? “the Powers That Be would prefer” &”will obfuscate. They will deny. They will suppress. ” &”This has happened over and over again all over” i say yada,yada
This is how “they” or anybody can sell FEAR.
and believe me, fear sells for a nice profit
It’s good 4 the price of Au
I think that’s right, gard. Fear is used to sell the metals. People tend to see the shorts as the main manipulators, because they appear to be spoiling everyone’s party, whereas in reality they are often seeing a stock’s price way out of kilter with reality. Most manipulations work better the other way, with people manipulating the price up and selling near the top, since they know perfectly well the price rise is their doing.
Not so much that FED is out of bullets as the dawning realization that all the bullets are duds. Any number times zero still results in zero.
any no. times(c) . How about the # oo minus 1. Shhhhh, don’t tell anybody, it’s a secret but it is all c(time). luv ya Arch
True Frank. Too bad though, when crowds become vaguely aware that “the games are rigged” and/or our leaders are incompetent, most of them go tearing off towards bad solutions. As I think our election is proving. I need a stiff drink tonight, and don’t even drink. Oh well, we still live in some of the most free countries on Earth, with a strong chance of keeping it so, so no whining is really called for. It helps just knowing that savvy straight-shooters like you, Travis, Myron, Ben, HN, and Sharon exist in this chaotic world.
And u and I r riggers 2……….leaders r leaders. And try a little misty from Canada 4 me will ya’all, not the same as drinkin’. I Like ur Icon, btw did u get my like??
Hi Patricia, gard here. I’m gardiananj from AOL. they gave me taht name.
PM =’s precious, precious, my precious heavy metal (Golum from Hobit)
Central never runs out of money, ru kidding?? C article on selling fear, it’s good 4 AU
SANDSTORM GOLD…Long SAND…gathering conviction
First, Thanks to Travis on this one. He has written about it and gets credit for the introduction. Also came to my attention on account of CaseyResearch , who gave Nolan Watson high marks in an article looking at young guns in the mining industry.
Travis probably knows Sandstorm better than I do, so I’ll be brief and maybe Travis will weigh in on it.
Sandstorm is a “junior” in the royalty business. The CEO is Nolan Watson, an individual that impresses me to the extent I can learn about him in video interviews, resumes, and company websites. I am totally confident about management, quality, goals, methods, and objectives of the Company.
The company stock took a dive recently, one of their deals fell apart and it did some damage. So the stock price has been depressed. It is hard not to be intrigued by SAND at current prices and I have been adding to my position.
Several things have happened recently that are pushing me towards conviction on SAND. They are:
1. Acquisition from TECK RESOURCES of a royalty package, for $22 million, on a group of
mine royalties with strong counter-parties. One could spend hours looking at the materials on the projects. There are a few key projects, notably the Hot Maden copper/gold deposit in eastern Turkey.
2. Rick Rule’s ideas have recently influenced my thinking on exploration and development projects. SAND’s royalty acquisition is very appropriate to the strategy discussed by Rick Rule on the “optionality” of in-ground, undevelopped assets. SAND has actually implemented this strategy with the royalty package, acquiring royalties on huge reserves for a pittance.
3. On individual mines I am reluctant to go outside North America because of jurisdictional and political risk. (Bear Creek in Peru is an exception, on account of the enormous leverage and outstanding management.) The SAND royalty package gives exposure to geographic regions at a very low price that I otherwise would not be comfortable investing in.
4, In a recent interview, Nolan Watson said quite plainly that Sandstorm is very likely to start paying a dividend in the not-too-distant future. So when there is a quarter of two of elevated metal prices, you should not be surprised at the announcement by SAND of a shareholder dividend. It;s pretty clear that a move like will be great for the stock in a zero-interest rate environment.
5. I love Nolan Watson’s makeup. Unassuming, moral, and focussed. High objectives and standards. Ambitious but without egomania, megalomania or greed. He is not a swashbuckling explorer, he is an accountant who saw first hand how to do his work at Silver Wheaton. My father once said to me, “Never underestimate the power of good leadership.” SAND has excellent leadership.
Sandstorm Gold is evolving into a conviction pick for me. I have a nice but not oversized position…but I am going longer on Sandstorm Gold. I want a lot more of it.
Not sure if I will reduce my big cap miners farther, or add money to the sector.
Hi hendrix – Just wondering – has your Rick Rule epiphany also improved your view on Brazil Resources as an optionality play? (guess you’ve seen how they have gone to orbit recently?)
ps I chickened out and took my original investment off the table after it basically tripled; feel like I have betrayed myself somewhat but hoping there will be a final wipeout later in summer for picking that 1/3 up again at much lower cost.
I do note there was a general pullback in the miners I am tracking though a minority bucked the trend.
My uranium positions (CCJ, BRIZF, and UEC) were always an unconscious
optionality play. I took them without any near-term expectations, I just thought they were very cheap and had uranum assets that would eventually be revalued.
BRIZF attracted me for the uranium potential in the Athabasca region. It is often touted as a gold stock and it does have that additional potential, but I figured that it was the uranium that got Adnani involved.
Hmm.. I doubt it’s their Uranium asset that drove Brazil Resources to more than quadruple in price from late jan (38c) to the end of march (reached 176c?) – otherwise other Uranium miners (Cameco, Denison, Energy Fuels, Fission, UEC ) would have had me dancing a jig, LoL. (Still hoping that will happen in the not too distant future, folks.)
Also (as founder) Adnani was involved in Brazil Resources long before they bought Brazilian Gold Corp primarily for Brazilian gold properties it owned, which (unexpectedly?) turned out to own the Uranium asset in the Athabasca.
Here’s a nice Adnani interview with Jay Taylor (whom I respect) on YT – from january last year :
https://www.youtube.com/watch?v=QGFBSMw4Mmo
(Runs to 26 mins, but the first 10min includes the story of that Uranium asset).
$BRIZF…long…You are absolutely right, I agree 100% the uranium has nothing to do with BRIZF’s recent movement, it is the gold. But I bought it for the uranium in Athabasca. The gold was just another chance to be right on the stock.
Starting out looking for gold plays, BRIZF would not be a top pick for me.
But as I say I am long.
Pretium Resources (PVG) shares were lower 2% on Tuesday after the company said it has filed a renewal of its prospectus to sell up to $600 million in securities.
The prospectus is for the sale of common shares, debt securities, preferred shares, subscription receipts, units, warrants and share purchase contracts from time to time over the 25-month period after Canadian securities regulatory authorities have issued a receipt for the final short form base shelf prospectus.
Gold was also down a bit, and the average big miner was also down 2-3% today. Most of the group seems to be moving together these days, animal spirits getting revived a little bit.
Hi Travis
Hey Travis, btw did u get my email about $SRPT??
Yes, but I don’t generally follow the biotechs in detail — the financials don’t make any sense to me most of the time, and I don’t have the time or inclination to become expert on the science and the murky world of drug valuation. I also prefer not to trade in stocks that Dr. KSS typically writes about if I can help it, since the chances of an appearance of conflict of interest are high. I think Lynn forwarded your note on to Dr. KSS as well, in case he’s interested — can’t say that I know anything at all about that particular stock.
& the oracle at Omaha Knows about insurance, and reinsurance like Markel??
Travis,Tell Lynn thank u 4 me. And it would not be a conflict of interest 2 me, U don’t even need the 3 days, but thank u. “No excuses” that’s my motto. And thank Travis 2
00)
Travis my “spirits” r revived a bit. No thing to fear but fear itself. luv gold but not not not the stock. unless it’s goin’ up LOL 😉
Jasgre ooooh that sounds bad! R u an investor since 2003?
And closed out $tsla for a nice profit. bgt & sld $SRPT & netted profit. sld $Nugt
b 4 it crashed and netted a profit. $Cim & $reph & $TLog went up $Mpw will announce earnings on 5th. The DOW lost 137.9 pts. Therefore all my stocks that follow a DOW like curve went down. How did u’all do??
Myron’s pick up another 2.3 % *KGILF .I give credit where credit due. Like the the Whitesox have as many wins as the cubs..
Hey Dan From a bit abov $3 to a double at approx. $7 since 1/1/16
Kirkland Lakes i.e. Cap’t Kirk’s land ‘o lakes. $889M mkt.cap founded in 1983 in Toronto
eps $0.13 mrq net profit mar. 5%
Or Kandy Kirkland’s land o’ lakes. have u ever met her??
And “how about dem oily Texans w/ J.J. the swat Goooo Astros
No but she is my kinda lady up 78% percent.. If she wants to dance we are good to go.. The squaw on the butter was always hot to..
Stopped on the way home at the Chetnik hall.. voted for my guy.. (the one that actually talks about educating our children) I will be dammed he won..There is hope yet..
There is Hope all ways. Fear not lest u be a fr aid. All children r our Hope
It’s in Schererville Indiana center of the political universe don’t ya know… Where else can you vote for a Jew or a Cuban or a woman or the the orange white guy..
Trot? My kind of Lady but I don’t dance all that well! ? squaw ..Sacajawe uh. on butter. Can’t cut the mustard w/ a knife 😉
Where in the world is Chetnik hall/ sounds like Boston
Nezzie, It’s good to c $Sand double since Feb. I owned some once, thank u Travis. Went up and down, and eventually went flat, so I sold. Was at $15 5yrs ago. But they don’t pay royalties 2 u. that I can c
550 M markcp, 4 buy, 2 overwt., 2 hld from my analysts. The breakout in gold was the 1st of this yr approx 5 mths ago
“I love Nolan Watson’s makeup” reealy lol
Nolan will be giving dividends in the near future. He indicated it without promising.
If a $out Quartemna10 or $20 pullback is all we get after going from 1140 to 1300, I’ll be very happy. Got red ink today, obviously.
My PVG convert Mr. Cranky Geologist checked in with some geology explorer types he knows and some geology professors in Canada. One of them actually had Robert Quartermain as a student. None of them had any specific geology opinions about Brucejack but there were a lot of warm fuzzy generalities about Quartermain, PVG, and junior miners.
No hard DD contributed but no red flags, either.
DRUMROLL. A new Hendrixnuzzles red-hot speculation is coming by Friday. It is very timely and you will need to act fast, because here is going to be breaking news THIS MONTH. It is on a ticker I have never seen mentioned in print on this website.
I have taken Rick Rule’s in-the-ground optionality idea and I have found a speculation
wherein we can load up on the barbarous yellow metal for less than $60 per ounce.
Try not to wet yourself.
..horrible typos. If all we get is a $10 or $20 pullback….
Oui Oui Oui,,,,, ,all the way home.
Arch that’s French, oui??? all the way home are the 5 little piggies and that is what the little piggy said because he had none
Excellent.
my comment is awaiting moderation. “u c my likes?” u
That 1 didn’t get moderated lol 😉
Hey moderator, r we havin’ fun yet, “yes, all I can stand” rusty
You are hilarious. Can’t wait to see what you have discovered. Don’t have a lot of time on my hands at the moment to explore a lot. Thanks!
U mean, I’m not supposed 2 pee 4 three dam dayz.,,,a dam is what i’ll require. 🙂
so gi am oo) luvin’ it
Nezzie, “This has happened over and over again all over” LOL it’s Yogi the Bear de-ja-vousa all over again.
“wherein we can load up on the barbarous yellow metal for less than $60 per ounce.”
Yada, Yada, Yada and Blah, Blah, Blah
hey Travis, put Nezzie to the thinkolater and c what stock, that has never been c’een but will be on Fri. Must be a junior miner, not an expert, probably foreign, maybe Canada
Huh? Don’t know what one you’re talking about.
Really, Nezzie gave us a stock teaser 4 the thinkolater
Or my email about $SRPT??
Hi Travis. Translation from Gardese: Hendrixnuzzles has a gold pick coming Friday, can you make a guess?
PS it is not a junior miner, it is not Canadian or American. All will be revealed Friday.
Of course there is a chance someone will say, “Oh that company. Myron Martin reviewed it 28 months ago.”
What ya know.. looked like my vote counted. We run a clean election in Indiana..
Bring it on.. Truth..
Dan, cool bring it on all ways
That’s great but there’s a lot more people in Cook County Illinois and they DON’T run clean elections there. Hey Dan, politics on a different thread please, unless it relates to the ongoing bull market in precious metals. If you think you have an insight into why Bernie or Hillary or trump may affect gold and silver, then it’s maybe OK.
We’re grateful to Indiana for decisively speaking and ending the misery of the unnecessary drama about brokered conventions! Thank you, Indiana and dan62.
HN, I’ve been hoping some of my biotechs would go up, and I would cash in and switch back to gold….bad plan. Enjoying this thread and stashing the data for when I do move more to the gold stocks. Sand will be my favorite there.
Martin Armstrong thinks there may be another move down for gold before it is off to the races, and then thinks it will move in tandem with stocks as people rush to get out of government debt. His feeling is that gold will reach about 5,000 rather than 10,000, and he says there is always a time to sell.
For real protection against a collapse of a country, government, currency, etc, obviously only the gold you can pick up and carry will do.
??? R My Posts 2 long??
I’m not crazy, (I’m lucy(lucid)) and my mother did not have me tested, (except in the real world) like Sheldon from sheldor. Now that is 1 crazy show. that’s a “like” oo) “The Big Bang” explosion(TnT or C4) inflation w/ inflatons stop end program.
Is there anybody out there??? hey moderator, u alligator, c u lata”?
May be a 4 letter word or 2?
Hi Gard, it is important that you comply reasonably with the thread guidelines and have your comments wander only slightly off topic. We are not interested on this thread about day trading, medical stocks, politics, quantum physics, or anything else out there in the wide world, other than hard money investments, and maybe uranium.
Also you stream of consciouness style would be fine but there are many readers who are not subscribing to this thread because they get notices whenever anyone posts. So their phone is beeping and they check it to find there is another unintelligible aphabetic message puzzle from you.
Please do not take offense, you are free to express yourself as you c phit…ON YOUR OWN THREAD. I have the responsibility as thread moderator to say what is permitted and what is not, and I am asking you to comply with the thread guidelines and have some consideration for those who do not understand or appreciate your posts.
I appreciate your substantive contributions, which are several. But please make an effort to conform with the thread . Your right to express yourself as u c phit
is not being infringed, you are free to start your own thread and ee cuumings everybody to yor harts content.
Cordially
Thank you to HN and everyone else who has requested that ‘gard’ understand the thread ‘guidelines and how we all receive notices. 78 emails of jumbled letters? I prefer not to have to unsubscribe to any of my favourite threads. Effort appreciated.
cheers
DITTO TO THAT!!
Guidelines For New Members: Posting Rules and Etiquette http://www.stockgumshoe.com/2014/11/microblog-guidelines-for-new-members-posting-rules-and-etiquette/ You’ll not only find respect but so,e awesome tools….
So Nezzie you were the moderator? Long Nugt
gard, pointless posts like that are exactly what we are talking about! Please don’t take up other people’s time with meaningless posts. It makes it difficult to read and even to find the real posts.
Hi gard, I’m guilty too in going off topic with politics and whatnot, we just have to try and control ourselves! But there’s a thread created by Alan for “anything goes”, most anything you want to say, someone should give you the link to it if they haven’t, not me though, I’m disappearing again for a few weeks.
Lucky Alan….it’s like the obnoxious relative that no one wants to put up, “wouldn’t you be more comfortable at Aunt ____’s house?”
Looks like our old pal Tim Hall is back. Reincarnated as “Gard”. Similar styles on comments and writing.
Tim Hall is not me never was nor will ever be. Only I am me
Have a good trip! 😉
And now I am no longer Gard I’m Alan Pennock
Gard Was a poet and I didn’t know it. !. Goes to show that you never know that you never know……………… A dyslexic Gard would be a draG……. welcome back alan not not not alanh
One of the websites I frequent carries various monikers (Talk Digital Network, and HoweStreet.com). I think it might even be a real radio show over in Canada..
Jim Goddard regularly interviews newsletter writers and providers of stock research and they have a strong focus on natural resources (they’re in Canada..).
I just noticed this recent interview with Chris Vermeulen (who runs TheGoldAndOilGuy.com) with very interesting discussion of things like :-
– how Silver is likely to do some serious ‘catching up’, and
– the dollar is likely to head lower which would light a fire under commodities, and
– Chris reckons spot gold price heading to upper 1300s in coming month
– before a significant pullback;
There is another regular on that program called Tim ‘Cycles Man’ Woods who has been fairly consistent in calling for one more pullback event in the gold price before the real bull market gets going, but I think this is the first time I heard Chris Vermeulen back that thesis.
http://talkdigitalnetwork.com/2016/05/silver-could-be-an-explosive-investment/
DRUMROLL DRUMROLL…early break on Hendrixnuzzles gold pick
Hi everyone. I had planned to publish on Friday an idea I have been working on.
However, Glenn Newberry forwarded a news release to me dated today that has a direct bearing on this idea, so I think it is better for me to publish it RIGHT NOW.
A SPECULATIVE INVESTMENT IDEA IN GOLD from Hendrixnuzzles May 4th, 2016
This is for those who believe that gold is in a bull market, and who like the idea advanced by Rick Rule of purchasing inexpensive gold “options” by acquiring large in-ground reserves at very low per-ounce prices through acquisition of exploration and development companies who have control of large in-ground reserves.
I am persuaded that this approach has merit. Previously I was much more interested in actual gold producers with completed or nearly completed projects, or in royalty companies. I considered lack of a production facility to be a negative. But to Rick Rule’s way of thinking, the lack of a producing facility is a benefit because there are only minor expenses while you are waiting for the commodity to appreciate, and you are not depleting your resource at low prices. He refers to this strategy as “optionality”, since it is akin to buying a call on the underlying commodity with no expiration date.
As usual, you should do your own due diligence. The idea I am going to suggest could be a big loser.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
OK, here we go. Here’s how I found the pick and why I think it has potential:
One of my favorite holdings is Sandstorm Gold. I like to check into the Sandstorm website to keep abreast and I noticed they were making a big deal about a package of royalties they acquired from TECK for $22 million. Sandstorm seemed very excited about the deal and made a pretty big presentation about the properties and their potential. It was really impossible to digest the value of the royalties but one got the feeling that Sandstorm thinks they made an important coup.
So I decided to look at one deal in the package that was pretty advanced. Sandstorm featured this deal as a very important part in the whole package. The deal was a 2.0% net smelter royalty on a Turkish project called Hot Maden. Hot Maden has no mill and no gold production. It is just a big claim with a bunch of drill holes.
OK. So I look up Hot Maden and find that it is a joint venture 30%/70% deal between an Australian explorer/developer Mariana Resources, and a big muscular Turkish conglomerate Calik Holdings.
So far, so good. Calik is a local strongman and an industrial powerhouse that can do the heavy lifting. Ain’t no Turkish tree huggers gonna stop these guys. So what is the value of the deposit ?
Well…They have a resource estimate with 2.0 million ounces of gold in it. That means Mariana Resources has got 30% of 2 million=600,000 ounces of gold in the ground. Pretty nice.
Then I see a footnote.. there’s another 1.0 million ounces of gold equivalents contained in the deposit…and Mariana has a 100% interest in the non-gold minerals !! The other materials are mostly copper and silver. So 600,000 ounces gold and 1 million ounces gold equivalents…means Mariana Resources has inferred resources of 1.6 MILLION OUNCES OF GOLD or GOLD EQ in Hot Maden.
Phew…1.6 million ounces. That seems pretty big. I start to think I should check out Mariana Resources.
Mariana Resources turns out to be an Australian penny stock exploration company, selling in the UK symbol MARL, and they just did a dual listing on the OTC pinks under MRDLF. The US price is 4 cents bid, 5 cents asked. Market cap is $33.5 million.
So I found a micro cap piss-ant exploration company with no mill and no production selling for a nickel.
How could I ever buy such a thing ? Especially after I just crucified all those Rickards newsletter subscribers who were investing in Turkish puts, categorically saying the were foolish. And now I am looking at a small Australian explorer who has a claim in eastern Turkey with a minority interest, no mill, no production, and not even a mine shaft. And for sure my good friend Mr. Cranky Geologist is going to laugh and snort at me forever ! I will never be able to live it down….
I decided to plough ahead anyway with more due diligence. Okay. So they got 1.6 million ounces of AU in the ground. The market cap is $33.5 million. Let me see…that works out to…ah..um…must have forgotten a zero. ..Let me try that again…no wait, this can’t be right…there’s too many darned zeros…
After 10 minutes, I concluded that the value of Mariana’s gold in the ground is $1.92 billion, at $1200 per ounce. The grades are decent, over 11 grams per ton. You can buy the company for $33.5 million. Whoa, this is starting to look good. You are getting something worth 57 times what you are paying.
Let’s check the per ounce price of gold in the ground. Let’s see…You can buy 1.6 MILLION OUNCES of gold…for $33.5 million dollars. Divide the 33.5 by 1.6,equals $20.94…per ounce of gold ?! Say what !?
At this point I am pretty sure I have made a terrible calculation error, but it keeps coming out the same. But I’m getting a headache doing all the millions and billions so I give it a rest and I decide to move on ahead and see what else I can find out . I find out they have four 100% owned projects: one in Turkey, one in Peru, one in Argentina, and one in Chile. Whoo boy. No data on any of these. Ho-hum. Moving along to the shareholders… I find the top shareholder is SPROTT GROUP, 5.83%.
Well I’ll be darned, I think Sprott Group is Rick Rule’s company !!
Then comes Anglo-Ashanti at 5.71%, an outfit called Resource Capital Funds at 3.76%. The next five largest own a combined 5.43%; directors in total own 2.35%. That’s it.
This concludes the factual part of my extensive and painstaking due diligence. Someone please correct my math error on the price per ounce in the ground. There is a slim chance I am correct, because Rick Rule hisself has a couple million bucks in this thing, and I got the idea from him to begin with.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Now for some crazy upside speculation.
None of the other projects have anything done yet in terms of drill tests . There’s no data, just pictures of high Andean desert wasteland with a few underfed llamas. But there are some more clues that make me think something big is cookin’.
First. In a UK press release labelled NOT FOR RELEASE IN THE USA, Mariana stated that they have just done a streaming deal with an unnamed North American company in exchange for $5 million. A Canadian company is inferred. This has got Sandstorm Gold written all over it. One can be sure that Nolan Watson met a few times with Mariana and had some discussions before he forked over $22 million to buy the royalty from TECK. And you can be sure that they discussed Maple Leafs, and I don’t mean the hockey team.
Second. There is no data yet but there is a lot of fancy magnetic imaging on their Dona Ines claim in northern Chile. I see a lot of black spots that indicate big gold anomalies. Some of these dark spots are pretty big, one fat crescent-shaped one was almost 2 kilometers long. Now I repeat, there is no data.
You can’t go plunking down money on a 4 cent company because of some inky spots on a fancy Xray. The MRI just detects differences in the relative presence of different materials of interest, like gold, silver, copper. However …they have a 10,000 meter drilling program underway that was finished in April 2016…LAST MONTH (maybe even last week), and they are going to announce the results THIS MONTH (maybe even tomorrow) This means that the inky spots on the magnetic resonance images are going to have data relating to them, and real soon at that.
Did I say, there is NO DATA YET ? Because there isn’t, you know. But there will be, sometime in May. Maybe even a brand-spanking-new resource estimate based of the data. Today is May 4.
So if 1,600,000 ounces of gold at $20.94 an ounce doesn’t float your boat, I suggest that we have the additional chance of catalytic events in next few weeks, namely:
–A release by Mariana of data from 10,000 meters of new drilling, that may dramatically affect asset reserves and create new resource zones, particularly in the Dona Ines claim;
–An announcement by Sandstorm of further collaboration with Mariana both at either Hot Maden or Dona Ines, or even both;
–An announcement by majority owner Calik of plans to further move the Hot Maden project along;
–Continued appreciation of gold prices in the world market.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
So there you have it. I am going long on $MRDLF immediately unless someone informs I have made a calculation error and the price in the ground at Hot Maden is $2094.00 per ounce instead of $20.94. Please help me out here. I never could score 800 on the math SATs like all my friends, and it has done lasting psychological damage.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
POSTSCRIPT: This morning Glenn Newberry forwarded a press release stating that SANDSTORM GOLD HAS BECOME MARIANA RESOURCES LARGEST STOCKHOLDER
Mariana Resources Ltd : Mariana Announces Closing of Private Placement for GBP6 million Yahoo Finance – 12 hours ago
Mariana Resources Ltd 28 minutes ago GlobeNewswire … “The overwhelming support for Mariana and this placement specifically from North America and our … http://finance.yahoo.com/news/mariana-resources-ltd-mariana-announces-060656912.html
Here is a press release dated to January 2016 that speaks of the Sandstorm royalty purchase. Evidently it includes 56 different royalties! Wow! If they ever produce, SANDSTORM should do quite well.
The other interesting tidbit is that they hope to put out a Preliminary Asset Evaluation by early Q4 of this year.
There is also a copy of the Aug. 18th, 2015 press release showing the initial findings at Hot Maden.
Indicated Category (100%):
2.033 Million Oz Gold Equivalent** (“AuEq”) – (4.71 million tonnes (“Mt”) at 10 grammes per tonne (“g/t”) gold and 102,000 Tonnes (“t”) copper, for a gold equivalent grade* of 13.4 g/t)
Inferred Category (100%):
0.968 Million Oz AuEq** – (3.65 Mt at 5.5 g/t gold + 65,000 tonnes copper, for a gold equivalent grade* of 8.2 g/t)
http://inpublic.globenewswire.com/2016/01/20/Mariana+Resources+Ltd+Hot+Maden+high+grade+gold+copper+Project+Turkey+Sandstorm+Acquires+Teck+Royalty+Package+for+US+22m+which+includes+the+Hot+Maden+2+NSR+HUG1980066.html;jsessionid=WGmWGB0lX0r5FHsCdBf3j9q7soKjVAuFDiAuP125nYK37KZkLGma!464228890
Might take a small position soon.
Typo: the symbol is MRLDF and I went long 30 minutes ago at 4.5 cents.
I trhink your presentatioin got monitored…. awh shucks Long MRLDF thx HN
$SAND $MRLDF Long long
My original research was on Mariana Resources and Sandstorm Gold. But the article is in moderation and I cannot control the release of it to the thread.
The 5/42016 press release on Mariana and Sandstorm entering a collaboration was predicted in my article, and MRLDF is the recommended pick. It is a penny stock, pink sheets. I would not want anyone to buy it without due diligence, but unfortunately the due diligence is in moderation and there is an important press release out this morning.
So I am naming the pick.
Long MRLDF, long SAND
$MRLDF
Thanks HN for the great info! Did you have to go broker-assisted on the purchase? Having no luck with TD or IB
I did nothing unusual to buy the stock through Charles Schwab, but the MRLDF is way down the food chain on the OTC pink sheets. So some brokerages may not have it in their stock universes. Mariana Resources is also listed on the AIM under symbol MARL.
$SAND long $SAND…Sandstorm Gold is obviously an investment that will benefit from production at Mariana Resources. Sandstorm has 2 @% NSR, plus 7% of Mariana, plus an undisclosed streaming deal of which we do not know the details.
$MRLDF – Sean I bgt w/ TD Am…took a while but worked. Best2U-Ben
Thanks Ben
Thanks so much Hendrix. You are awesome. You will soon have to hire out to Travis and help him sniff all these plays out. 🙂 Gosh have never bought a penny stock before, you can buy thousands of shares for a very nominal sum! Had no problem with TD doing this. Wouldn’t it be wonderful if we could really get ahead of the gang and make a killing like Rule, Casey and the others do? Of course they are dealing with millions and I believe they can get together and move that stock whenever they choose! We will just have to be like tenacious little dogs and hold on! Ha Maybe one day I can add something worthwhile to this thread. Keep up the good work.
According to RickRule, one of the biggest mining superstars alive today would be Robert Friedland. He is charismatic (apparently mentored Steve Jobs) and Rick has said that Robert on a really bad day is a better salesman than Rick would be on one of his best days..
Friedland is also very media shy, preferring to get results rather than spend time yakking about doing that. And I have noticed (sadly) that Ivanhoe presentations at events like PDAC tend not to make it to the online recordings available in YouTube.
So we are probably lucky that some mining journal decided to do a piece on Ivanhoe and its mining assets, which meant that like it or not they are in the public eye again. Subsequent to that piece Friedland seems to have agreed to do an interview with Sprott (who are longtime shareholders and supporters of his ventures in the past), and they have made it public here:
http://sprottglobal.com/thoughts/articles/rick-rule-robert-friedland-interview-2016/
Some quick points that stood out to me from listening on the train this morning:-
– They won’t dilute their shares as they are all cashed up from selling parts of their huge and high grade ore bodies to the chinese and japanese
– They have basically spent their share of the expenses, and their partners must fund the development (I’m not 100% clear on details – talk of ‘non recourse loans’)
– They have one zinc mine that is ready to produce at short notice; it’s the highest grade zinc mine on the planet, and zinc is on the verge of heading higher
– Their copper and platinum deposits are monster in size and grade and could run for decades
– The share price (93c at the time) was covered by the cash in the treasury i.e. all those resources in the ground come for free
– Caveat for HN: they are in Africa
After hearing this I went and put in a stink bid to grab some more IVN should the market continue to drop for a bit; and I am asking myself whether I should just grab some anyway.
But I think I’ve learned that no matter how good a story, there’s always volatility in the share price.
Of course I would be delighted to hear comments from others who listen to it and help me understand it better than I did.
Hey wow thanks frahman
Thanks so very much for the link to the Rule/Friedland interview. Definitely a five-star listen. Friedland was awesome. IVN is a buy for me, high priority, just a question of where the $$ comes from.
Thanks so much Frahman for sharing this! I really enjoyed that interview, very informative. I had bought a thousand shares at 68 & 82, now I am going to buy much more and let that cake bake in the oven! Not worry about that stock at all! Certainly very reasonable costs and NO DEBT! No wonder he and Rule have been friends a long time.
Good for you Investor101! (I wish my cost base were that low – I have been accumulating Ivanhoe since around mid 2013 sadly for me the share price was much higher then)
Here is Rick Rule doing a half-hour ‘improptu’ session at the WRIC 2013 conference titled “3 stocks I’m buying now” (I went long Ivanplats/Ivanhoe and Lydian):
https://youtu.be/acgLx37SbwM
He also ended up talking about a couple other stocks (including the Toscana Energy Income that I mentioned in an earlier post).
The Q+A at the end has interesting insights into Ricks thinking process about resources.
CAVEAT The website canadianinsider.com lists recent insider buying and selling of canadian companies by directors and other insiders… and I DON’T see Robert Friedland buying any IVN stock. This is really confusing to me esp in the light of his claim that the share price recently just represented the cash in the treasury – all the assets and future mining earnings come for free. In contrast, Keith Neumeyer was buying up First Mining Finance stock hand over fist when it was trading in the low 30s (Canadian cents).
The only explanation I have is that maybe Friedland is putting his wealth into other ideas right now – and I’d dearly love to know what those companies are . I can’t really imagine that he was dumb enough to buy an overpriced house somewhere with a huge mortgage and is having to spend all his spare cash on the repayments.
Anyone else want to comment on this ?
IVPAF nada yet – Robert Friedman seems approachable, listened to the audio.
Phone: +1-604-688-6630 (North America) / +27-11-088-4300 (South Africa)
Email: info@ivanhoemines.com robert@ivanhoemines.com Have a gr8 day! bl
IMO…Friedland isn’t going to try to get richer by buying and selling his own stock. He could care less. He’s going to become Uber-rich when he makes deals with partners to produce metals out of his projects and send the price of the company into the stratoshere. He is focussed on his business “minding his knitting” and creating some of the biggest and most profitable mines ever made on planet earth, and by the way it apprears he intends to uplift the locals and his employees along with him.
He strikes me as sincere and great social liberal who realizes you can’t do anything for anybody unless you make money.
Frahman, IVN?… I bought Ivanhoe Mines…IVPAF……
US symbol is IVPAF
Ivanhoes’s Annual Information Form for 2015
I discovered you don’t need the SEDAR website (horrible interface) to get hold of the Ivanhoe’s official documents as they list them on their own website. E.g.
https://www.ivanhoemines.com/assets/docs/fs/ivn_aif_2015_final.pdf
I found the 3-year history overview interesting esp for descriptions of the past stock issues they made.
Seems Friedland owns a large chunk himself! (Last para on p8 mentions a C$108M share raise @C$2 of which friedland took C$25M “effectively proportionate to his holding in the Company” – that’s encouraging.)
This is his life’s work. These three mines are the very best in their class IN THE WORLD. For an exploration geologist and developer, any one of them would be the crowning achievement of an entire career, The fact that he has three of them at one time puts Friedland on the Mount Rushmore of the the Rockhounds.
Listening to him you don’t get the feeling at all that he is driven by money. It is his interest and passion that has caused him to excel. And the company seems to pay more than lip service to the idea of social contracts and the environment.
We can also suppose that his background as a political science major at Reed College in Oregon is evidence of a liberal social outlook as far left as one would want.
But Friedland realizes you need money to do good. Someone has to pay for all the uplifting of the masses, and if you don’t make a lot of money you can’t afford to do it.
Uh-oh. We are getting too close to politics on that one.