Friday File Part Two: Annual Review (Gold, Mining and Natural Resources)
by Travis Johnson, Stock Gumshoe | January 26, 2018 9:31 pm
Updates on Altius, Clean TeQ, eCobalt, Equinox, First Mining, Maverix, Sandstorm, US Gold
(plus JD.com and a couple option trade updates)
This is premium content. To view this article (and to have full access to the rest of our articles), sign up. Already a member? Log in.
Source URL: https://www.stockgumshoe.com/2018/01/friday-file-annual-review-gold-mining-and-natural-resources-plus-a-few-options-trade-updates/
Forgot to mention my speculative options positions in this space, all of which remain small at this point — Goldcorp, Pretium and Cameco — and my lingering stub of an Africa Oil position. Will be more detailed in my assessment of those positions in a future piece, though I’m continuing to hold them all and am unlikely to do any enthusiastic buying in those positions in the near future.
Can you share what your entire portfolio is as well as position size?
That’s more or less what I share and update regularly in the Real Money Portfolio — it’s linked from every email, at the bottom, and is at https://www.stockgumshoe.com/personal-portfolio-irregulars-only/
Though now that I look, I see Friday’s update to the portfolio didn’t work for some reason — will check that and fix it with the updates tomorrow.
What do you know about 1st cobalt corp. It tanked on Friday, so thought I would get your thoughts
Nothing. Will take a gander.
And tough news out for Northern Dynasty today, though that’s no longer in the portfolio (I sold my remaining stub a few weeks ago)– EPA head Scott Pruitt says some cautious things about the eventual permitting “win” that has been expected for the Pebble Mine since Trump’s election:
“The project proponents continue to enjoy the protection of due process and the right to proceed. However, their permit application must clear a high bar, because EPA believes the risk to Bristol Bay may be unacceptable.”
Northern Dynasty responded to confirm that yes, they are still in the permitting process and expect to eventually win that permit, but this is both a reminder that it will be more than a cursory review and that it will take a long time. Article here.
The article and many similar stories mischaracterize this as being a “rejection” of the project by the EPA, in which case the stock would go to near zero unless there’s a meaningful legal recourse for the company — it’s not a rejection, it’s just a reminder that it won’t be a rubber stamp and it could easily end up being tied up in permitting for a long time and could be rejected. Since some Northern Dynasty shareholders are clearly hoping not just for an approval of the limited and more environmentally-friendly mine that has been envisioned most recently, but also for a full-on “do what you want” approval that could result in a dramatically larger mine, that’s likely to cause a big drag on the stock.
So… that’s why Northern Dynasty’s share price is collapsing this morning, FYI.
Travis NAK has been climbing steadily for the last week or so. I havent seen any reports . Any idea s?
Northern Dynasty is often very levered to gold sentiment, but that is a big move — I haven’t seen any real reason for it, maybe a newsletter touted the shares again with gold rising last month. They did get some financing done in January, so perhaps some of the folks who bought shares are hoping to convince others to join them? 🙂
No actual news on the Pebble Project has come out recently, as far as I know, though I haven’t been following it closely in recent months.
Army Corps of Engineer study out on the 2/22/2019 and indicates no environmental impact from the Pebble Project.
Was wondering what you think of gold royalty companies like SAND as a kind of insurance policy for a potential recession, market crash, or political unrest as opposed to a put on SPY?
I hold gold and gold royalty companies as a bit of crisis insurance, protecting purchasing power when currencies fall in value, though the gold price (and royalty stocks) won’t necessarily go up during a market crash (gold tends to do well after a market crash, but during a crash folks often want to sell everything)