Gold and Silver and Hard Assets after Trump’s Inauguration…2017MAKE YOUR PORTFOLIO GREAT AGAIN !
This thread is a continuation of several threads posted previously by the author on gold and silver and hard asset investments. I am still a believer in hard assets. I also believe we are entering a period of inflation with continued dollar devaluation, higher interest rates, and a sluggish economy with chaotic dislocations. I believe there will be a lot of uncertainty and high volatility.
PURPOSE My intent is to find and discuss good mining and commodity ideas. Gold and silver remain a focus, but I want to achieve a more balanced approach still based on tangible commodities.
STEEL and IRON ORE…I believe Trump’s programs will benefit iron ore and steel. Stocks in this sector have been beaten down terribly but are rebounding. I am long VALE, a Brazilian company which is the world’s largest iron ore producer. I have been long Arcelor Mittal but do not have a position at the moment. Anybody know anything about cement and asphalt ?
COPPER, ZINC, PGM METALS…My very best conviction stock is Ivanhoe Mines IVPAF. I am completely comfortable with a large single position in IVPAF to cover these metals. However other investors may be uncomfortable with a small cap in sub-Saharan Africa. So I think it is beneficial to introduce other names even though I myself am not interested. Rio Tinto, Freeport-McMoran, Teck, Turquoise Hill, BHP and others come to mind. Travis, our host, is long Altius Minerals, and I have been also.
URANIUM…I’m bullish but the choices seem pretty limited. My top three investment-grade choices are Cameco first, then Cameco second, or my third pick would be Cameco. After that, you are speculating on small caps, or buying ETFS or funds comprised of Cameco and some small caps. At the moment, I am long Cameco and UEC.
LITHIUM…I am considering a long position in lithium. I have nothing to recommend at the moment, although I am strongly considering Galaxy, an Australian company. And I like Neometals, also an Australian, but it is difficult to get from my broker, who hates it when I want to buy obscure 50 cent companies on small foreign exchanges. If anybody’s got a great battery play, I am interested.
POTASH/FERTILIZER…very interested but they all seem pretty expensive. There has been consolidation but I have considered Agrium, Mosaic, and there is a German company whose name I forget at the moment (K&D? K&S?).
OIL AND GAS…I would like some very good conviction picks accompanied by strong reasons and decent research. This field is so big, we could get completely lost just tossing names around. I am somewhat worried about price weakness in the energy sector but feel that it is worthwhile to develop a point of view on a few companies. I have little experience although I made very good money in the past on XOM and CVX. Currently I would be interested in pipelines, LNG, or any other sector that someone knows something about. In natgas I like OGZPY.
SOLAR and WIND…really not too interested. The results depend too much on politics, the time frames seem too long. But I am not completely closed-minded on it if you have conviction on something.
COAL…same opinion as solar and wind, but the prices are low and depressed instead of hyped and high-flying. I am still stuck with some defaulted Arch Coal bonds that my financial advisor recommended. They went to ZERO. Now they are worth a Starbucks latte and a pastry. And no espresso shot in the latte, either.
AGRICULTURE…very interested. A large sector but really not too many choices if you rule out futures, like I do. I have a few obscure favorites, but no positions at present:
WHGPY (Chinese pork processor who bought Smithfield)
LAND (Gladstone Land, California farmland)
INCPY (Input Capital, a Canadian canola, streaming model).
Open to more conventional picks like ADM and DBA.
GOLD AND SILVER…my picks have been discussed at length previously. I follow these pretty closely. I am long royalty/streamers SAND, FNV, SLW, and OR; miners PVG, MAG; developers SA, CLASF, MRDCF, BALMF, KNTNF, and LXVMF; and I own PSLV and physical bullion. I swing trade big caps ABX and NEM.
****
DISCLOSURES. I am a retired executive and an amateur investor. I like both fundamental and technical analysis. I am a medium-term to long-term position player and prefer to discuss stock investment in that context. Please no minute-by-minute reports that oil is now 52.50 down 10 cents and the Iranians may suspend Ramadan next week so you are going long until the afternoon bell.
I am not an expert in any of the commodities discussed nor am I qualified to give advice.
Everyone makes mistakes and I make more than my share.Sometimes I change my mind.
When I post, I express my opinions and my positions. These are just that…they are my opinions and my positions. They are not advice or recommendations, which I remind you I am unqualified to make.
Opinions and positions are subject to change at any moment. That is quite unlike the pig-headed and foolish political convictions everybody carries around adamantly, and which change only rarely for unpredictable reasons that have nothing to do with logical thought or reasoned discussion.
Because of this, political developments can be introduced on this thread only when they have a clear bearing on the commodities or companies under discussion.
You are responsible for your decisions, and I am responsible for mine. Caveat emptor.
I would like to operate in a friendly, honest, and constructive atmosphere.
As thread moderator I reserve to myself the role of referee, censor, arbiter, and Grand Poobah, subject to the over-arching authority of Travis, who owns the site and who has on occasion exercised his right to ruthlessly censor and suppress my radical blatherings.
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.
Philippines mining minister said at a press conference yesterday she is ordering the complete closure of 21 mines and the majority are nickel mines.
I think that equates to about 10% of worldwide nickel supply.
Any ideas for good nickel plays ?
You get a small portion with your Ivanhoe-position 😉
$BCEKF Bear Creek Mines…long…the edited copy below is from a November 2016 news release…I missed it because of my pre-occupation with the national election and my investigations into the various aspects of Republican and Democratic criminality, election fraud, loss of our Constitutional rights, and attempted takeover of the United States by leftist globalist conspirators and their allies in the media, banking, and corporate sectors.
****
Bear Creek Mining is my main optionality/development speculation in silver. My
more “solid” silver investments are SLW, MAG, and PSLV. I also have physical silver.
****
November 14, 2016
Bear Creek Mining Selects Peruvian Engineering Firm to Undertake Corani Project Detailed Engineering
“…Bear Creek Mining Corporation…announces it has selected [a prominent Peruvian engineering and construction firm] to undertake Phase I Detailed Engineering work at the Corani silver-lead-zinc project in Peru [will form the basis of the Company’s application for a Construction Permit].
Andrew Swarthout, President and CEO [states], “We are very pleased [partner with G&M], one of the largest and most respected Peruvian engineering and construction firms…G&M [has] both the [experience to deliver] exceptional service in [engineering design], permitting, construction of mining operations, bulk earth moving and contract mining…[they have a record] of very successful construction and operation outcomes at the Cerro Verde, Las Bambas, La Arena, Shauhuindo and Constancia mining projects in Peru. We look forward to [completion] of this important milestone in the development of the Corani project; one of the largest undeveloped silver mines in the world.”
The [engineering work] will commence in mid-November and is expected to require 6 months to complete[=May 2017]…it will establish final processing flow sheets, equipment lists, mine sequencing optimization and updated CapEx and OpEx cost estimates for the Corani project based on a projected 2018 construction [start] and will support the [ application for a Construction Permit]… Concurrently, the Company will engage a project finance consultant (to develop a financing plan). The Company expects the Phase I Detailed Engineering to be completed by the end of Q2 2017 and the Construction Permit and project financing to be in place by mid- to late-2017 such that a construction decision could be made before the end of 2017…(contingent on project financing, permits, and market conditions)…. Bear Creek and G&M have indicated a mutual interest in considering various partnership structures for construction and operation of the Corani mine, which will be further contemplated upon completion of the Phase I Detailed Engineering.
Bear Creek also reports that the Company has submitted an application to the Peruvian Ministry of Energy and Mines (“MEM”) for accelerated recovery of the 18% value added tax (that applies to the Company’s planned future investments in the Corani project). Pending approval of the application, a contract with the MEM will be executed after which the Company will be able to recover, on an expedited basis, the (taxes associated with the project) as described in the approved ESIA and the 2015 Corani Feasibility Study (available at http://www.sedar.com). (This is) expected to reduce the Initial CapEx requirements for the project…
****
This is a lot of copy but the details are significant. There is a real timeframe for
permits, approvals, and everything else needed to build the mine. My guess is that there has been a lot of back-room negotiations that resulted in hiring of a local engineering company; plus hints of future partnership and awarding of construction to local interests. Presumeably this will have a favorable influence on the outcomes of the political and permitting processes.
They are also working on the financing. Do not be surprised at an announcement that Sandstorm Gold is involved…their office is down the hallway, on the same floor as Bear Creek at 400 Burrard Street in Vancouver, and Sandstorm has plenty of ready cash with lots of approved bank lines and good cash flow.
Finally, a few words on the mineral deposit. The studies done on this project show NET CREDITS on the cost of silver production for the first three years. That is, with the income from secondary products, the cost of production is BELOW ZERO for the first three years. You can check out the data yourself on publicly filed documents.
Note that Copper has pulled back about 4% this week.
$IVPAF…Ivanhoe Mines…Platreefs…favorable court ruling on South African tribal grave relocation. Long Ivan.
Todays closing Uranium prices
Date UxC BAP UxC BA Bid UxC BA Offer
3-Feb-17 $25.63 (+0.32) $25.38 (+0.38) $25.88 (+0.26)
The chart that accompanied the above from the IR at UEC shows that the 12 -Dec-16 price was $18.00 I wonder what we can expect the top S will be.
CleanTeQ…Ben (SoGiaAm) provided several links to sites with CleanTeQ presentations. One which I had not seen was a presentation on their water purification technology:
http://www.cleanteq.com/wp-content/uploads/2016/12/150303-Clean-TeQ-Water-Investor-Presentation.pdf
I am long on CleanTeQ. Potential upsides from cobalt, essential in batteries; scandium, that has high-tech application in aluminum; and in water purification,
where CleanTeQ has proprietary technology suitable for large inductrial and mining water projects.
$CTEQF, CLQ.ASX – Many thanks HendrixNuzzles. Link to the WATER thread: http://www.stockgumshoe.com/2015/11/microblog-water-our-most-precious-resource/ Long Gummune! 🙂
Hi Ben, I have followed the Cardinal discussions but never really took a position. Cardinal certainly has a good humanitarian contribution to make, the product is viable, and I wish the company and its holders every success.
But in following the threads, the problems and uncertainties associated with Cardinal were a little too much for me. The product seems viable and effective. But accounting, cash flow, debt, financing, management quality…all were cited as issues from time to time. These are
all “fixable”, but for me as an investor they represent risks I do not want to take. They cause a lot of anxiety. And I gently point out that all of these issues are completely answered to my satisfaction in the case of CleanTeQ.
For those concerned about the humanitarian issues: I suggest that the scale difference between Cardinal and CleanTeQ is worth considering.
Cardinal’s approach is small-scale and local. This is needed in many places by many people, and I do not mean to downplay it. In contrast it appears that the CleanTeQ technology will be implemented on much larger industrial projects; hence the impact of their installations will be larger.
I entered CleanTeQ to get a small position in scandium as a speculation. I was ignorant of the presence of a water purification operation and cobalt production. Ironically, these may be best reasons to invest in CleanTeQ.
long $CTEQF
$CTEQF…CleanTeQ Holdings…thanks again to Ben who provided important links on the water thread. This is an Australian stock, in the US it is a pink sheet OTC.
This was a speculation for me, I did not really have enough information or due diligence to present a strong opinion on the public thread.. But as I get more information, I have to say that I am liking CleanTeQ a lot.
I entered at 50 cents a while back. The Hendrixnuzzles Effect** took place immediately and the stock cratered to the 30s right after I bought it.
But it has recovered, and I moved into the black today at 57 cents
(**Hendrixnuzzles Effect: My entry invariably causes the target stock to drop in price.
Corollary: My selling of a stock invariably causes the stock price to go up.)
http://www.cleanteq.com/wp-content/uploads/2016/12/150303-Clean-TeQ-Water-Investor-Presentation.pdf
The stock is very volatile, market cap is only 3oo million. But there are three ways to win: cobalt, scandium, and water purification. So this miner represents “diversification” for me.
My opinion is that cobalt and water purification are likely to drive up the value. Adding value with scandium is a long shot, but I am not relying on new demand for scandium as a value driver for the stock. In my opinion the cobalt and the water purification are sufficient. I would think that someday there will be a spin-off between the water purification and the mining assets.
Cobalt is a vital component part of many batteries even though they may be called “lithium batteries”. According to CleanTeQ, they might as well be called Cobalt-nickel batteries. Also per the CleanTeQ website, sources of cobalt are usually from by-products, but at the CleanTeQ Syerston project, cobalt is a CO-product.
It is way too early to speculate on long-term price targets, but for me $2.00 is a pretty easy number to imagine. that would put the market cap around a billion. With Friedland’s connections, raising money will not be a problem if they need it. Friedland has 20% of the company and is the chairman.
Lon CleanTeQ holdings. $CTEQF
CleanTeQ…in his African presentation, Friedland says CleanTeQ is in the same position that Ivanhoe was a year ago, and that a “five or ten” times appreciation will be “easy”.
Long CleanTeQ $CTEQF
hn regards – “Cobalt is a vital component part of many batteries even though they may be called “lithium batteries”. According to CleanTeQ, they might as well be called Cobalt-nickel batteries. Also per the CleanTeQ website, sources of cobalt are usually from by-products, but at the CleanTeQ Syerston project, cobalt is a CO-product.”
This text part interview with Friedland January 18, 2017 – Short Tesla Motors Inc.? Robert Fridland and the Coming Cobalt Cliff. It was visible I think as a video for a while before it disappeared off line….it was a great interview, Friedland in full flow! The Elon Musk remarks are very amusing, time will tell If he has him by the proverballs so to speak!
Any idea how much cobalt can/will CleanTQ produce from this CO-product method of production?
http://www.ecobalt.com/news/cobalt-news/short-tesla-motors-inc-robert-fridland-and-the-coming-cobalt-cliff
Thanks hn, Long CLQ.ASX for a while now and looking to increase my position. I think Friedland sees this as one of his frontier newer tech world companies. After watching the African Ivanhoe presentation this is a very exciting associated company, still in it’s early days.
Still have to examine the presentation in full….
One aspect to CleanTeQ and Friedland is that many mines have got these water pollution and environmental issues. Seems to me that a good solution for mine waste water purification would be a slam-dunk, big-time winner, and Friedland has hands-on experience and total credibility in approaching this market. Plus he knows his away around government permitting circles as well. It’s easy to imagine major contracts for CleanTeQ coming from all over the world.
ZINC…secretsquirrel provided a link to a recent presentation by Robert Friedland in which Friedland presented the case for Ivanhoe Mines and CleanTeQ. Something I did not realize that was asserted in the presentation was that ZINC has strong fertilizing characteristics when used as an additive to agricultural soil. Friedland asserts that the Chinese have mandated that zinc be present in fertilizer used for
Chinese agriculture, as it improves yields.
This adds to my bullishness on Ivanhoe Mines, which has the very rich Big Zinc deposit in the DRC. The presentation on the Kipushi Big Zinc mine is quite persuasive without the additional application of zinc as fertilizer; but I have been looking for agricultural investments also and zinc thus qualifies.
LITHIUM…Friedland debunks the frenzy on lithium, thinks investors are being taken for a ride. He says cobalt and nickel are more important battery components.
Long Ivanhoe, CleanTeQ, and Galaxy.
LINDE AG revisited…hydrogen cell power…in the recently posted link to Robert Friedland’s presentation in Africa, Mr. Friedland mentions hydrogen cells as an up-and-coming power source. He claims it will eventually be a major source of consumer energy: it is plentiful, clean, and renewable. It can be generated by windmills generating electric power, and stored in the vertical members of the windmills.
No opinion on this. But Friedland mentions Linde AG, a German company specializing in all aspects of compressed gas. Linde AG came to my attention a while back as a partner in a private company (Siluria) developing nanotechnology to process crude oil into useable petrochemical products. The other partner was Braskem, a NYSE Brazilian chemical company. I wrote a Gumshoe article on this and at one point I was long Linde and Braskem; but the time frames seemed too long, oil crashed, and I got out.
My antennae are back at attention on Linde.
My father who is 90 has been running his car on hydrogen for years. His licence was taken away temporarily so he removed the (paraphernalia ) but is in the process of restoring it since he got his licence back. The bugger took some ‘vitamin for his eyes or so he told the DR) and memorized the eye chart. Who says an ol dog can’t learn new tricks. Hydrogen…running his car on gas/ hydrogen like a crossover gas/electric.
Casey International Speculator is teasing a small-cap “red gold” company in Canada, which they say has found a massive deposit. Does anyone know what it is?
Didn’t see that teaser but he has one out on PVG….”about to unleash a $9 billion torrent” of gold. Has a photo of the PVG camp.
You are correct!! (I should have known you would be. 🙂 🙂 )
No, but I was searching for it today here on StockGumshoe. If anyone has figured it out, please let us know. There is a photo on his teaser. I’ll see if I can figure out how to upload it, in case anyone recognizes it.
Here’s the url from the photo:
Hold on a minute!! Ah ha…how about that!?!? Look at the url. 🙂 It includes “Pretium” in the url string. So, I guess it’s PRETIUM ($PVG)!
Long $PVG
The url string disappeared and the picture appeared (that’s nice to know), but trust me, the url included Pretium.
It’s an old photo. The barracks and mill building are up. Check the photos on the Pretium website.
Thanks so much, hendrixnuzzles and leslie7. I love this blog, and all of Gumshoe. It would’ve cost me $2000 (non-refundable) to get the same info from Casey. Jim Rickards is also extremely gung-ho about Pretium and has sent a zillion emails and videos about it.
Long $PVG, maybe add a bit more.
$SAND, $PVG and Silver…long…Sandstorm Gold is my largest gold position and I am very comfortable with it. There was good news for Sandstorm, the announced Luna gold transaction should help them. I believe the Luna position was a thorn in Sandstorm’s side, a rare blunder they got punished for. But now they seem to have arranged a graceful way out that could eventually give a positive result.
However I am considering redistributing some of the money in Sandstorm to beef up my PVG and silver positions. I am so overweight in gold stocks I do not want to add total capital to gold positions.
PVG is about to go into production and it is being promoted strongly; and silver is still quiet and I think it is undervalued relative to gold.
I have already sold off Balmoral and Lexam. Nothing wrong with them, but
SA, CLASF, ERDCF, MRLDF and KNTNF are all showing strong signs of movement and give me enough speculative home-run discovery/development potential.
So I am not bailing on Sandstorm, far from it; it’s just that I see short-term potential catalysts in PVG, CleanTeQ, and Ivanhoe…copper, zinc, PGMs, cobalt, scandium; and I think we are at a good moment to increase silver holdings.
Unfortunately, I am afflicted with the Heartbreak of Limited Capital.
If you were to add to your silver positions at this time, what would you add, other than SLW and MAG? I really appreciate your comments throughout this thread.
I love GPL (Great Panther Silver), which I’ve had for a little over three months. It keeps on going up and up. The great pundit and crystal gazer Larry Edelson described it as “one of my favorite silver miners”.
Long $GPL, $SLW and $MAG. $GPL has been the most profitable of these three, in the fairly short time I’ve held them.
The “right” addition in silver really depends on your objectives, risk appetite, the configuration of your assets, and your opinion on what is likely to happen out there in the big, bad world. So to suggest one for you starts to get into financial advice, which we are not supposed to give.
My own positions in silver each have different purposes:
PHYSICAL SILVER: this is actually a large silver position for me. I have junk silver, bars, and one ounce coins in my possession.
This is not for buying and selling, it is money for a rainy day. I see this as disaster insurance, I hope I never have to use it; but for me it was the very first investment, and a pretty sizeable one. Starting out, it was my first priority.
PSLV: this is a redeemable bullion trust run by Sprott. It is as close to owning physical as you can get. Silver is bulky and it is not practical to have lots and lots of the physical in your possession.
MAG: a silver miner. Remember, miners suck. In my opinion, this is the very best of the stocks considered “conventional miners”.
It is the only one I own; I have explained why elsewhere. There are many others one could select, such as Pan American, Fresnillo, Coeur d’Alene, Hecla, etc etc. It is a matter of taste, they are pretty similar flavors.
This one is in Mexico, that one is in the US. One has higher debt, another lower cost of production. Yadda yadda yadda. Miners suck, but MAG sucks less. For me, one miner is enough.
This is an “investment” in silver, protection from runaway inflation, leverage to spot price increases and declining greenbacks, and liquid, as long as the exchanges operate and we have electricity.
SLW: this is a royalty company. Better than miners, they have no operations risk. They get their dough off the top line when the mines ship their production. They are in the business of cashing checks.
BCEKF: This is an exploration/development play. It is a long-term speculation. There is no production, it is years away if ever. I have several similar speculations in the gold sector but this is the only such speculation I have in silver. “Silver-in-the-ground” speculations do not appeal to me like in gold, there are too many existing producers. But Bear Creek is an exception.
If I were to add a silver miner, I would re-check current prices and choose between Pan American, Great Panther, CDE, HL, and Fresnillo. At prices under $18 more PSLV or bullion is also attractive.
But honestly, I would prefer to add MAG and SLW.
$AG…forgot them, I was long before deciding on MAG. AG totally an OK silver mining investment…but remember, miners suck.
HN and others: Thank you for your comments regarding silver miners. I look forward to your commentary every day. There is a wealth of information on this site and that is why I became a subscriber. It was money well spent.
$SLW I’d like to own this company, I am very heavy royalty and streamers, as i feel these are the wisest of the ways to leverage PMs. But I am creeped out by their tax issues, and that adds a level of risk I don’t want to carry. Companies like RGLD and SAND pay about a 20% tax rate, SLW has been doing the Cayman Island thing, and effectively paying zero for over a decade, and the Canadian government is all over them. Not just is the potential bill in the hundreds of millions of dollars, but if they lose you can cut 20% off future projections as well. I think the chances are good they either win their case, or settle for pennies on the dollar, other similar cases have gone against the government, but just don’t like this issue hanging over a company i own like knives hanging on the ceiling.
No argument, your position is totally reasonable on SLW.
I am not terribly worried about it; but as you imply, these investments should give peace of mind. If one is getting worry and anxiety instead, that is good reason to stay away and look for something else. There are not a lot of precious metals royalty companies but there are other choices.
$SA Long SA, and too overloaded. Hoping gold rides up to 1250 here, and probably take that as an exit point of some percentage for profit taking and portfolio balancing. Here is an article from the motley fool who lists it as one of the 3 stocks to avoid in 2017. https://www.fool.com/investing/2016/12/30/3-gold-stocks-that-could-suffer-a-meltdown-in-2017.aspx
Long RGLD, FNV, SAND, SA, AG, CLASF, IVPAF, MWSNF, KLGDF, SSVFF,
ATT: Renbycage $SA Seabridge Gold….
A published analyst panning Seabridge Gold !?!
And from Motley Fool, no less. That got my attention, Seabridge Gold is one of my conviction picks ! So I go to the link.
***
First stock to avoid, IAMGOLD. Very good reason, it has AISC over $1000 per ounce. Their their margins suck and they have big overhead. Miners suck.
Second stock to avoid, NAK. I agree 100%. No proof of an economic deposit,
lots of political and permit hurdles, years and years away from production, and lots of promotion.
Third stock to avoid, $SA Seabridge Gold. I am getting nervous now because the article has been well-reasoned and I am in agreement so far.The reasons he cites are that production is way off in the future, and there is too much uncertainty and financing and so on. On the surface these are good cautionary considerations.
However, my own research leads me to discount the worries expressed by the author. My opinion on $SA remains positive and is not affected in the least by the article.
Deep in the Stock Gumshoe archives, one may find my postings on Seabridge that address the very objections cited in the article.
LEAD TIME: I have reason to believe that construction would occur much faster than would usually be the case. For one thing, permits are in place and the natives are pacified. But the main reason I believe that real mining could occur in an accelerated time frame is the location of the KSM deposit.: It is cheek-by-jowl to
the brand-spanking-new Brucejack mine and Snowfield deposits, which are under development by Pretium Resources. Take a look at the claim maps on the Seabridge website.
PROJECT FEASIBILITY: Critical infrastructure to the area, such as roads, power lines, water, and so on, ARE ALREADY MOSTLY DONE FOR THE PRETIUM PROJECTS. There would need to be extensions and so on, but we are talking of extensions in tens of kilometers, not hundreds.
Seabridge has completed a lot of the feasibility studies on the deposit. They are well ahead, and have been preparing for the future. I am impressed so far with Seabridge management, who have been diligent in developing this resource.
Furthermore, it is public information that Pretium and Seabridge are co-operating as neighbors on exploration access. It’s a small detail to let your neighbor’s truck drive over your property to get at yonder mountain, instead of taking the long way around. But there is more to it than this:
Seabridge and Pretium have done a joint feasibility study comparing the cost of one operation to the costs of two separate operations, and have found that there is a savings of roughly $700 million if they operate jointly. This means that going with Pretium as a development partner would have a $700 million dollar advantage in the development of the Seabridge KSM deposit. This is self-evident, it costs a lot less to build two plants than it does to build one.
By the way, the revised costs for building the PVG plant were $800 million.
Accordingly, I predicted that there will eventually be a joint venture between
Seabridge and Pretium concerning the Seabridge KSM deposit. There is no rush to do this, Pretium has to get Brucejack up and operating, gold prices are still meandering about in undramatic territory, and both Pretium and Seabridge have lots of ground to explore on their respective properties.
But it is a joke to compare the prospects of Seabridge’s KSM with those of Northern Dynasty. Seabridge is in a superior position for eventual development, with PVG as I predict, or without PVG, as is possible.
Long $SA. Long $PVG.
Long $SA, $PVG. $CLASF. I had the same feeling when I read the article. Always a little startling at first when an Analyst comes out with an opposite opinion, but I trust all the DD that has been put into $SA! More than willing to take a “chance” .
There are always two opposing opinions, and they are subject to change.
Wherther someone agrees or disagrees, one has to look at the facts as best one can, connect the dots, and decide for oneself.
And that goes for me, too. The due diligence I have done can be replicated by anyone.
Yooper, spend some time on the Seabridge website. You will develop conviction. These guys know what they are doing and have 50 million ounces of gold in the ground.
A while back I noticed that they handed some of their exploration rights in a JV with Colorado Resources, and Colorado Resources has a nice option on some of the Seabridge property.
One might be suspicious and think they are giving up on inferior properties by giving Colorado Resources an entree. My interpretation is that Seabridge has their hands full with other higher priority projects, KSM especially, and therefore could use the help in exploring other good targets. Hence the invitation to Colorado. The properties may be secondary to Seabridge, who already has 50 million ounces in their sights; but it could be major for Colorado Resources, which has a tiny market cap.
It is true that Seabridge surrenders potential but it’s probable that they cannot discover and develop all the potential of their claims by themselves. So they might as well get some partners involved, and since the main issue on the optioned properties is resource discovery, an explorer like Colorado Resources fits the bill nicely.
To develop KSM, they will need capital and operational ability.
That is why PVG springs to mind. But they could also decide to go it alone…they do own the project.
$SA I love the deposit, I guess the biggest risk would be the price of gold sinks, and the massive financing needs to move forward become a problem. I doubt that the price of gold sinks that much, but the second thing then becomes the impending debt, the timing of progression, the total costs… factors that will play on the stock price over the next bunch of years.
$SA A primary reason I own this company is I feel the management is committed to creating shareholder value by getting the most gold they can, and preserving ownership per share. As a gold investor, that’s kind of what I am looking for. I also feel most comfortable with canada as a location, I really have to hesitate with projects located in places like turkey, africa, and other hot spots.
I also like Canada as a jurisdiction…even better than the USA.
It took a while for me to get comfortable with Turkey, Mongolia, and the Congo.
I don’t go out of my way to find things there, but so far MRLDF, ERDCF, and IVPAF are working out for me.
$SA…Renbycage, I have a proprietary metric that I apply to gold explorers and developers. I call it the Hendrixnuzzles Optionality Grade, or “HOG”.
I do not wish to divulge HOG methodology, which is Top Secret. It involves over 100 different variables and takes into account the magnetic field of the earth, the longitude and latitude of the deposit, the horoscope of the chief executive, and a careful lithoscopic analysis of the drill cores. I rent the CERN computer on weekends to run all the reports, and my pals over at the Princeton Institute for Advanced Studies help me load in the data.
I would tell you more details, but then I would have to shoot you.
But I will tell you that of the companies to which I have applied the HOG rating method, $SA Seabridge Gold had, far and away, the best HOG rating of any I have seen.
If gold sinks, all these stocks go down the tubes.
That risk is present in all of them, and we can’t avoid it.
My point about Seabridge is that the deposit is big and viable, they are pretty far along in their homework, they will have an excellent head start on transit and power infrastructure, and there is a very good suitor next door when it is time for a construction decision.
$SA Seabridge is not in a hurry. They do not have to do anything except sit there and hang around until gold goes up. They just do their studies, expand the reserves, get their permits, and drill a few holes here and there.
and go play golf or hunt elk. They can wait as long as they need to.
When prices go up, there will be people all over them like white on rice. They will have lots of options, people will fall over themselves to get KSM. Or if they are so inclined, they can do it on their own, or bring in a partner.
That’s the whole idea of these optionality plays, they do not eat up capital or resources when prices are low. All you have to do is be patient and wait. The fact that the stock is doing nothing is good. That is the time to buy.
$AG Excellent article comparing AG with CDE for those evaluating silver investments, also from the MF.
https://whotrades.com/feed?pinned=3564820&showMore=1&utm_source=maxsocial&utm_content=feed
Long RGLD, FNV, SAND, SA, AG, CLASF, IVPAF, MWSNF, KLGDF, SSVFF
Clean TeQ
CEO Sam Reggall 30 minute interview – Feb 1, 2017
Very interesting, I was impressed by his knowledge – any thoughts hn?
Plus – Clean TeQ is developing its world-class Syerston Nickel Cobalt Scandium Project, utilising … The Syerston deposit is one of the largest and highest grade.
http://www.cleanteq.com/wp-content/uploads/2016/12/Syerston-Overview-1.pdf
Long ASX:CLQ
Was it here or somewhere else that I read Friedland called this company an “easy 4 or 5 bagger” and gave it as a tip at an investor conference.
CleanTeQ…Friedland called it out at the African conference last week.
The link provided went to a three-page overview of the Syerston property.
There were some very interesting things in there that gave food for thought.
The suspicion grows that the water processing aspect of CleanTeQ has an important mineral recovery aspect that will further enhance the water recovery economics, and may actually provide a major source of cobalt and scandium.
There have been very low-key references to this in the literature…innocuous references to “by-product recoveries”, “potential income from waste”, and so on.
One recalls that scandium and cobalt are generally not mining targets per se, they are usually by-products. One can also conclude that a water purification plant at a mine or industrial plant is normally not going to be interested in trace amounts of rare earths in their feedwater.
This could partially explain the strange combination of a rare metals miner with a water purification company. Waste recoveries in certain situations make make the plant profitable, over and above the compensation for installation and operations.
***
As far a Riggall is concerned: Friedland is co-chair. If he passes muster with Friedland, he is probably pretty sharp.
Apologies, missed the Sam Reggall interview.
Here it is – https://www.youtube.com/watch?v=lgoUwaNvEJ0
HN watch the video 🙂 https://youtu.be/lgoUwaNvEJ0
Thx SecretSquirrel 🙂
Most interesting Ben. Thanks for posting. I’ve passed the link onto A Certain Person who understands these things and works with them every day. (He’s a minerals processing expert.)
Penny
Saw it. Liked it. Long CleanTeQ.
Clean TeQ: Owner of World’s Largest Scandium Deposit
Published on Apr 13, 2016
https://youtu.be/oL3Cd01ho18
Sorry, SecretSquirrel, I neglected to thank you too.
Penny
PS Did you use to be BlindSquirrel?
No not a blind squirrel or wouldn’t know where to bury my nuts…. (-:
Reggall confirms my speculations in the interview. CleanTeQ will be mining rare metals from industrial waste, and they are going to get paid for it. Plus they have a real deposit of rare metals.
The odd pieces are fitting together and the jigsaw puzzle is looking pretty darned good. I’m long, but going into a full position asap. We are really at the ground floor on this, the interview is recent and the company is virtually unknown.
Friedland rises even higher in my estimation. This is pretty amazing since I already already consider him to be the Babe Ruth of Mining. Oyu Tolghoi…Voisey Bay…Kamoa/Kakula…Platreefs…Kipushi…and now, CleanTeQ. And this is in addition to the mine he GAVE to the Chinese, which formed the foundation for Zijin Mining, the largest gold miner in China.
Reggall seems to be pretty good evidence of Friedland’s eye for management talent, and the whole CleanTeQ package looks brilliant.
Of course, Babe Ruth struck out a lot. Friedland is entitled to a few duds, I hope CleanTeQ is not one of them.
CleanTeQ Did my due diligence last night, and took a position this morning. Very compelling business model. Looks like a huge winner to me.
Very interesting post. Good information here, doing a little diligence for a possible position.
$CTEQF – Change of Share Registry Details 06 February 2017
In accordance with ASX Listing Rule 3.15.1, please be advised that the share register for Clean
TeQ Holdings Limited (ASX:CLQ) has been transferred from Computershare Investor Services
Pty Limited to:
Automic Pty Ltd
Level 3, 50 Holt Street
Surry Hills NSW 2010
PO Box 2226
Strawberry Hills NSW 2012
http://clients3.weblink.com.au/pdf/CLQ/01825720.pdf
Saw that earlier, does it mean anything or are you asking?
hn might know….
$CTEQF – May have a bearing on the underwritten offering alluded to at 29:50 in the video “which will close in a few weeks…” https://youtu.be/lgoUwaNvEJ0
Thanks, just listened to it again, you could well be right. Just loaded up further, long ASX:CLQ
On a different but related topic, A Certain Person & I went to see the current movie “Gold”, based on the BreX mining scandal of a few years ago. I recommend it to all of you out there who hold mining stocks.
A Certain Person is grateful to Bre-X because the fallout from the scandal helps keep him working on QP (Qualified Person) reporting.
Penny
Colorado Resources Expands Kinaskan to Include Castle Gold-Silver-Copper Property
The company has entered into a purchase agreement with Kaizen Discovery Inv. $KZD. It may acquire a 100% interest in the property,
subject to a 2% percent NSR to the underlying original vendor. The company will issue Kaizen 1,000,000 units of Colorado,
comprising one share and one purchase warrant at 60 cents.
http://www.marketwired.com/press-release/colorado-resources-expands-kinaskan-to-include-castle-gold-silver-copper-property-tsx-venture-cxo-2193580.htm
Long Colorado Resources!
Map of Castle Drilling.
http://media3.marketwire.com/docs/Kinaskan.pdf
$FFMGF – First Mining Finance Completes Metallurgical Drill Program at the Springpole Project, Intersects 1.51 g/t over 341 metres, including 2.81 g/t over 87 metres
https://www.firstminingfinance.com/news-room/first-mining-finance-completes-metallurgical-drill-program-at-the-springpole-project-2017-02
$FFMGF – long
$CLASF – COLORADO RESOURCES EXPANDS KINASKAN TO INCLUDE CASTLE GOLD-SILVER-COPPER PROPERTY
http://www.coloradoresources.com/s/NewsReleases.asp?ReportID=777554&_Type=News-Releases&_Title=Colorado-Resources-Expands-Kinaskan-to-include-Castle-Gold-Silver-Copper-Pr…
$CLASF – long
$CTEQF…as indicated, I made some reconfiguration among my existing holdings: trimmed Sandstorm (which I look at same as cash), added more PVG, MAG, and CTEQF.
CTEQF now a full position, entered at 50 cents added today at 58 cents.
Average about 55 cents.
I will add as things develop, looking for a big gainer on CleanTeQ.
There is not a lot of information on CleanTeQ, but I have to say I’m terribly excited about it.
I’m resigned to the inevitable appearance of Hendrixnuzzle Effect, since
my entry usually result in price drops. The corollary is that the stocks I sold off to raise cash will surely go up. Oh well.
HN Thanks to your analysis. Also picked up some CleanTeq. Can you advise what you trimmed besides Sand?
I sold off a small position in VALE besides reducing
SAND. But it is still a major position. I like infrastructure but I can imagine steel being left out, or taking a long time to go up; there is so much supply overhang.
I also sold a small amount of ARTH. CTEQF is about the same price, and I think the chances and timeframe of a big hit are actually a little better for $CTEQF than they are for SARTH. $Arth is still an out-sized position for me.
One reason I like CTEQF is that is f a tech play and an environmental play. It is not just a mining speculation, for me it is diversifying.
The drops from my original essay are Lexam, Balmoral, Vale, and Osisko. I think they are all good but do not see me increasing position size enough for them to have an impact, and the money has to come from somewhere.
I believe CTEQF is an environmental company in its essence, with seemingly a very unique and perhaps revolutionary technology, that pays for itself by extracting things of value from the gunk it detoxifies. Let it be remembered HN that we took our positions on the same day. I think we are going to do really well with this one.
We drank the same kool aid. Don’t knmow whether they are an environmental high-tech trash-to-cash water purification company with a scandium mine, or they are a scandium supplier with a mine and a water purificatio and extraction business. Liking it, though.
CTEQF…and when they go to the banks they present themselves as a cobalt-nickel miner.
They have a number of hats that they wear comfortably, which they change depending on the audience.
Mining investors: they are a nickel-cobalt play.
Mining speculators: they are a scandium-cobalt play.
Environmental audience: they are a water purification company.
Technology: they have a proprietary technology for waste treatment and mineral extraction.
They are developing a market in high tech aerospace and aviation for scandium, of which they will be a prime supplier.
Take your pick.
yes, this company is definitely an interesting mix, and all of those components seem to have lucrative money making potential. While I have just begun to scratch the surface of their proprietary technologies, it seems like they have developed some fascinating science utilizing various resins to filter out various elements, and it has all kinds of applications.
$CTEQF … Doing some due diligence and found this company. Scandium Intl. ($SCY). Some competition for CleanTeq? A Scandium mine in Australia. Goal is to be first scandium-dedicated mine in the world. Appear to be a little ahead of CleanTeq in that Definitive Feasibility Study is complete — 4th Qu 2017 for CleanTeq. Production goal is 38,500 kg/yr. Grade appears to be half that of CleanTeq (300-600 ppm for CleanTeq v. 200 ppm for $SCY. $SCY will use chemical extraction to extract Scandium. SCY’s presentation does not mention Ni or Co.
Thoughts?
CLASF, PVG, SA…Positive news from Colorado Resources, but I’m of the opinion that the main event for Colorado will be in the KSP/Seabridge zone further south. The Kinaskan property looks like a bullpen addition, to get something in the pipeline for futures.
Kinaskan is a ways north of the really hot zone, which is the Pretium/KSM zone. The epicenter of the hot zone is the PVG Brucejack mine, which is going into production within two months. I looked at the maps again. Brucejack is near the western edge of the PVG property and the big Seabridge multi-zone KSM deposits are right over the joint boundary between SA and PVG.
The Seabridge/KSM deposit is really close to Brucejack,
like less than 10 kilometers, and the PVG Snowfield area is close, also.
Then thirty miles northwest, you have the KSP/Johnny Mountain/Iskut properties, divvied up between Seabridge and Colorado. There are a few odd parcels mixed in there, like the Skeena claim, but the whole area is really covered well between PVG, SA, and CLASF.
$PVG Pretium Resources…news flash: If you have a mine going into gold production in six or eight weeks, and Rickards and Casey send out a zillion
email blasts promoting it, the price goes up the following Monday.
PVG up a dollar today. Long PVG.
Here is a recent article from someone I’ve mentioned before. (Doug Eberhardt) I am not promoting his business, but have dealt with him in the past and believe his integrity is unmatched. His articles are always fact filled:
http://seekingalpha.com/article/4042901-gold-fed-beef
p.s. if this type of a post is not allowed, please advise.
Separate thread started on CleanTeQ, scandium, and cobalt
Link?
Scandium, Cobalt, and Water Purification: CleanTeQ Holdings
also can go to “Most recent Discussions”, is appears there.
Is this it? Or will it be like – gold-and-silver-and-hard-assets-after-trumps-inauguration-2017? Either way sounds a great idea. CleanTeQ is so much more than just a miner/explorer, what maybe. So I loaded up large this early morning Australian time at 71 AUD, previously was in at 0.585 AUD. To me this is RF’s iPhone of the mining world, now remember he knew Steve Jobs way back….
Thanks all for the informed discussions here. A Certain Person also bought $CLQ (in his ANZ bank trading account), and also at AUD 71c I believe.
Penny
Indirectly long $CLQ
Dammit! (Is that word allowable?) I forgot to sign in.
Penny
Penny,
On the Monday I bought a shed load at AUD71C, but nothing to do with any ANZ bank trading account, unless my broker used one which is unlikely.
SSquirrel, it’s just because we’ve always banked in Australia with the ANZ, so we use their brokerage services.
About Friedland, A Certain Person is always amazed that no matter what shady-appearing action he takes, he always comes out smelling like a rose.
Penny – indirectly long $CLQ aka $CTEQF