written by reader Gold, Silver, Copper, and Hard Assets…Fall 2017

By hendrixnuzzles, September 21, 2017

This is a continuation of the predecessor thread titled:

“Gold, Silver, and Hard Assets…Summer 2017”.

After my lengthy introduction, guidelines, disclosures, position summary,and warning notices, I will re-submit some meaty posts on Ivanhoe Mines which I think deserve attention and provide a timely change of emphasis; and I will also summarize the findings from the Hendrixnuzzles Crystal Ball, which has been churning out ideas that may or may not come to pass in the near future.

PURPOSE The purpose of this thread is find and discuss good investment ideas in gold, silver, and other selected metals, with a long-term or intermediate timeframe. We are not a short-term trading thread, although occasionally we may perceive short-term trading opportunities based on anticipated news, drilling, or transactions.

FOCUS Gold, silver, copper, nickel, platinum group metals, zinc, uranium.

NOT A FOCUS: Scandium, cobalt, aluminum, manganese, lithium, and aluminum; metals other than copper and nickel that are primary targets in battery technology, and developments in extraction and technology These are better discussed on the thread “Scandium, Cobalt, and Water Purification: Cleanteq Holdings”. Some overlap is unavoidable but this should be kept to the minimum amount possible.

AUTHOR BIAS AND BAGGAGE I have major two themes: long-term capital preservation based on metals, especially precious and demand industrials;
and big capital gain speculations based on them.

This second theme can lead to very speculative investments in exploration and development. This can be in conflict with the theme of capital preservation.
I cannot fully reconcile this paradox. So I can understand if a reader does not feel inclined to put money into these speculations. .

I favor royalty companies, developers, small cap miners, developers, and explorers. I have significant positions in physical metals but it is boring to talk about them and our focus here is elsewhere.
I believe in the concept of optionality as propounded by Rick Rule. Because of this I am of the opinion that , in general, MINERS SUCK. I am wary of big-cap miners, ETFs, and indexes. I am strongly influenced by leadership and management. Most of my metal investments are not miners unless the mine is run by Robert Friedland.
I will consider big caps when a bull market is established. I like low-priced speculations with good discovery odds and clear chances of being taken over or JV’d.

My favorite jurisdictions are Canada and Australia, but I will look at sketchy neighborhoods if I think the story is compelling.
I have become a big fan of Robert Friedland. His companies have evolved into a major component of my portfolio and interest.
I believe gold and silver prices have been manipulated and suppressed by powerful groups, including and especially governments and central banks.
I think these efforts will eventually fail, but they can visit havoc on prices and values in the meantime ,and keep prices artificially low for long periods.
Accordingly, I have shifted a fair allocation of my holdings away from gold and silver, and into copper and other metals that I believe will benefit from the trend towards electrification.
My percentage of gold and silver assets is still probably much higher than that of most people. .

POSITIONS My largest positions are Cleanteq Holdings, Sandstorm Gold, Ivanhoe Mines, and Pretium Resources.
If I want to reduce exposure to gold, the gold sector, I would reduce Pretium before Sandstorm.

My positions, in order of size within category::
Miners, even though they suck:
$IVPAF Ivanhoe Mines (copper, zinc, PGMs)
$PVG Pretium Resources (gold)
$MAG Mag Silver (silver)##
$MUX Mcewen Mining (gold, copper)##

Royalty/streamers:
$SAND Sandstorm Gold
$WPM Wheaton Precious Metals

Developers:
$CTEQF Cleanteq (scandium/nickel/cobalt- discuss on other thread) ##
$SA Seabridge Gold (gold)
$BCEKF Bear Creek Mining (silver)
$ERDCF Erdene Resource Development (gold)
$PTNUF Platina Resources (cobalt/scandium, discussed on other thread)
$UEC Uranium Energy Corp (uranium)

Exploration speculations:
$CDBMF Cordoba Minerals (copper)
$CMDRF Commander Resources (nickel-discuss on other thread)
$CLASF Colorado Resources (gold)
$KNTNF K92 Mining (gold)##
$CNRIF Condor Resources (silver)
$CCNCF Kaizen Exploration (copper)
$KVLQF Kivalliq Energy (uranium, multi-metal)

Physical and redeemables:
$PSLV (silver bullion redeemable physical trust)
Physical gold and silver

## notes:
CTEQF is a technology and water play besides a being a mine developer
MUX is a gold miner but I have it for their copper prospect.
K92 is a producing but needs discoveries so I class it as an explorer.
MAG is considered a miner but they are more similar to a royalty company
****
DISCLOSURES. I am a retired executive and an amateur investor. I like both fundamental and technical analysis.
I also surrender to flights of intuition and paranormal insights when they come to me.

I am a medium-term to long-term position player and prefer to discuss stock investment in that context. As more of my capital moves into conviction stocks, my transactions have become smaller and less frequent, and my standards for taking new positions have become higher.

I am not an expert in any of the commodities discussed, nor am I qualified to give advice. And by no means do I have any expertise in geology or metallurgy.

I express opinions and positions. These are not advice or recommendations, which I remind you I am unqualified to make. I change my mind frequently and my opinions are subject to change at any moment. I intend to keep the thread current but I cannot guarantee that I will tell anyone when I have changed my mind on a particular stock .

CAVEAT EMPTOR. You are responsible for your decisions, and I am responsible for mine. Do your own due diligence.

Everyone makes mistakes and I make more than my share.

***
Political developments and topics should be introduced only when they have a clear relevance to the commodities or companies under discussion.
Given the national and world situations, an occasional outburst of outrage, disgust or indignation is tolerated and understandable. .

I would like to operate in a friendly, honest, and constructive atmosphere.
So try to be nice. Try to have reasons for your opinions. Facts and speculations are both welcome, but be sure to distinguish between them.

Spelling, punctuation, and grammar matter. Everybody makes typographical errors and I am as guilty as the next person. But If you make a lot mistakes or are careless about these things, you are sure to be making errors in other more important things. So it detracts from your credibility even if your idea is good. Besides, it’s annoying.

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.

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Scottu
Member
Scottu
August 30, 2018 3:43 am

Sir Hendrix- any updates considered on your gold/silver positions as for example silver scrapes past a double bottom?
Stay cool & comfortable everyone!

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Griffin
Irregular
Griffin
August 30, 2018 12:31 pm

$FYI – Nickel Monthly News For The Month Of August 2018
by Matt Bohlsen Includes: AAUKF, AXNNF, BHP, ERMAY, FQVLF, GLCNF, HLPCF, IIDDY, LNZCF, NIKAY,

Summary
Nickel spot prices fell slightly in August.
Nickel market news: Nickel demand in the batteries market is starting to be noticeable. As per Mining News, “electric vehicle demand will double nickel price as soon as 2022.”
Nickel company news: Miners report strong nickel revenues after a year of rising nickel prices.

https://seekingalpha.com/article/4203128-nickel-monthly-news-month-august-2018?isDirectRoadblock=true

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Griffin
Irregular
Griffin
August 30, 2018 5:06 pm

$MUX – ATTENTION ALL CONTRARIAN INVESTORS:
BIG PROFITS ARE POSSIBLE – TIME TO ALTER YOUR PORTFOLIO MIX

We are inviting you to come and learn how:

Exciting new drill intercepts at Black Fox have encountered high grades of up to 20 ounces per ton of gold;
We have been building our gold resources at Black Fox and Gold Bar;
Our newest mine, Gold Bar is progressing quickly to production;
We plan to extend the mine life in Mexico by 12 years without onerous financing needs;
Los Azules, a large copper project and our biggest possible value creator, is being transformed from a remote, limited access exploration project to having year-round access and moving quickly towards permitting.

https://mailchi.mp/mcewenmining/attention-all-contrarian-investors-big-profits-are-possible-time-to-alter-your-portfolio-mix?e=9dec8f6bb8

HN news on Los Azules copper.

MUX long.

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Griffin
Irregular
Griffin
September 4, 2018 11:38 pm

$ARL/ARRRF – -Exceptional gold-silver rock chip results at Black Bullock Prospect, NSW

“First-pass rock chip sampling at the historic Black Bullock mining area (Wiseman’s Creek EL8554) records exceptional assay results:
Up to 38 g/t gold and 348 g/t silver.
Significant samples have greater than 1 g/t gold.
Several centres of workings located, largely obscured by soil cover and pine plantations.”

https://mailchi.mp/7d16c2a31b0f/exceptional-gold-silver-rock-chip-results-at-ardeas-black-bullock-prospect?e=3466f11741

ARL long

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secretsquirrel
secretsquirrel
September 5, 2018 10:40 am

Mention of IVN.

Nevsun finds white knight, shares jump as it agrees to buyout from China’s Zijin Mining

https://www.theglobeandmail.com/business/industry-news/energy-and-resources/article-nevsun-finds-white-knight-agrees-to-186-billion-buyout-from-chinas/

Nevsun finds white knight, shares jump as it agrees to buyout from China’s Zijin Mining

NIALL MCGEE MINING REPORTER PUBLISHED SEPTEMBER 5, 2018

China’s Zijin Mining Group Co. Ltd. is set to acquire Nevsun Resources Ltd for $1.86-billion trumping Canadian miner Lundin Mining Corp’s offer.

In a statement on Wednesday, Nevsun said it has cut a friendly deal with Zijin Mining for $6 a share, 26 per cent above Lundin’s $4.75 tender offer.

Nevsun shares jumped more than 17 per cent in early trading on the Toronto Stock Exchange on the deal.

In July, Toronto based Lundin took its $1.4-billion offer directly to Nevsun shareholders, after a number of its earlier informal proposals were rebuffed.

Nevsun repeatedly said that Lundin undervalued the company and that other parties had expressed an interest in buying the company.

Nevsun has two main assets – the Bisha copper and zinc mine in Eritrea and a coveted high-grade Timok copper-gold project in Serbia.

“While it is possible for Lundin to put forth a more attractive offer given the scarcity of high quality copper development projects, we view it as unlikely,” said Sam Crittenden, analyst with RBC Dominion Securities Inc. in a note to clients.

He said there was financing risk associated with a higher Lundin offer and that it is clear that Zijin is a motivated buyer.

Nevsun shares had recently traded above Lundin’s offer, indicated investors had expected a higher offer to surface. The shares closed at $4.94 a share on the Toronto Stock Exchange on Tuesday. Nevsun is already the best performing stock in the Canadian materials sector this year with a 61.5 per cent year-to-date return.

Zijin has done a number of mergers and acquisitions (M&A) transactions with large Canadian mining companies over the years. It is a joint venture partner with Barrick Gold Corp on its Porgera underground gold mine in Papua New Guinea. It also has a strategic partnership with Ivanhoe Mines Ltd on its Kamoa-Kakula copper project in the Democratic Republic of Congo.

A minimum of two thirds of Nevsun shareholders must tender to Zijin’s offer for it to be successful. The offer also needs to be approved by the Canada under the Investment Canada Act and the Canadian Competition Act.

Lundin’s interest in Nevsun was first made public in May, when the miner tabled a cash and stock proposal worth $5 a share, in conjunction with a junior partner, Euro Sun Mining Inc. Lundin eventually ditched Euro Sun and came back with the all-cash offer worth $4.75.

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deanbob
Irregular
deanbob
September 7, 2018 1:15 pm
Reply to  secretsquirrel

Thanks for the heads up! I chose not to wait on the tender.

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Griffin
Irregular
Griffin
September 5, 2018 12:27 pm

$MUX – LIVE WEBCAST – Rob McEwen and McEwen Mining **TOMORROW**

“Los Azules, a large copper project and our biggest possible value creator, is being transformed from a remote, limited access project to having year-round access and moving quickly towards permitting. ”

https://mailchi.mp/mcewenmining/mcewen-mining-analyst-day-847225?e=9dec8f6bb8

MUX long

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Griffin
Irregular
Griffin
September 5, 2018 3:49 pm

$trevf – An Update On Trevali Mining
BY Matt Bohlsen About: Trevali Mining Corp. (TREVF), Includes: GLCNF, IVPAF, VDNRF

Summary
The zinc sector has had a tough 2018 and Trevali is no exception.
Trevali’s fundamentals remain strong, and Trevali trades on a 2018 PE of just 3.2.
Trevali have been executing well, but will need exploration success to extend their mine life profile.

https://seekingalpha.com/article/4204184-update-trevali-mining?isDirectRoadblock=true

iI wish this was a Zinc monthly report but it is a slow day.

TREVF np

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Griffin
Irregular
Griffin
September 6, 2018 11:01 am
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Griffin
Irregular
Griffin
September 6, 2018 11:13 am

$MUX – McEwen Mining Reports Initial Resource and High Grade Drill Intersections at Stock Property

http://www.mcewenmining.com/investor-relations/press-releases/press-release-details/2018/McEwen-Mining-Reports-Initial-Resource-and-High-Grade-Drill-Intersections-at-Stock-Property/default.aspx

MUX long

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Griffin
Irregular
Griffin
September 6, 2018 11:20 am