Archive for Commodities & Metals – Page 3

Uranium Company Decides to Advance Athabasca Project

The Energy Report

Source: Streetwise Reports   12/27/2018

A ROTH Capital Partners report considers this Canadian firm’s news a positive development.

In a Dec. 19 research note, analyst Joe Reagor reported that Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT) intends to advance Wheeler River, its Athabasca Basin uranium project, into the permitting phase, beginning with an environmental assessment.

“We view this as a positive step towards eventually developing the project,” he added.

The forecasted budget for moving forward in 2019 is $10.3 million. Denison has committed to funding its part, about 90% of the total.

Reagor noted that a potential near-term, “significant positive” catalyst for the uranium explorer/developer is the receipt of successful results from in situ recovery testing for the Phoenix deposit, where it intends to do wellfield and pilot plan testing.

Permitting activities, including the economic assessment, will not likely move the stock in 2019—but could in subsequent years, indicated Reagor.

ROTH’s valuation on Denison remains the same, as do its Buy rating and $1.40 per share price target. The energy company’s share price today is about $0.63.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from ROTH Capital Partners, Denison Mines Corp., Company Note, December 19, 2018

Regulation Analyst Certification (“Reg AC”): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

ROTH makes a market in shares of Denison Mines Corp. and as such, buys and sells from customers on a principal basis.

Shares of Denison Mines Corp. may be subject to the Securities and Exchange Commission’s Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.

( Companies Mentioned: DML:TSX; DNN:NYSE.MKT,
)

2019: Mayhem, Misallocation and the Mockery of True Price Discovery

By The Gold Report

Source: Michael Ballanger for Streetwise Reports   12/31/2018

Sector expert Michael Ballanger looks back on markets in 2018 and provides his New Year’s outlooks for gold, silver, uranium and more.

A Brief Word on Forecasts
Each year between December 25 and January 1, every blogger, analyst, newsletter guru, or market historian like me issues their “forecast” for the upcoming year, and what I find a worthy exercise is to go back and read what we all wrote in the same manner that, as a youth, I used to track the meteorological forecasts of the famous CBC weatherman, Percy Saltzman.

The one thing that has struck me over the years is that forecasting markets is rarely much different than the trackman’s picks at Woodbine Race Track or the Vegas line on football games or Percy’s chalkboard alchemy deciphering rain clouds. Even when forecasts of economic or financial events are correct, particularly in the years following the 2008 Great Financial Bailout, the outcomes have been skewed at best and bizarre at worst. To watch as trillions of dollars, pounds, euros and yen were magically created out of thin air while the two monetary metals were prevented from levitating through government edict is a clear and present danger to the art of prognostication.

So take this missive with a large grain of salt and try to find amusement or value in it, but as the graphic below clearly indicates, forecasting markets is an inexact and difficult science.


Eleven bogus market crash calls over six years

Stock Market Outlook: As we close out the final few trading sessions of 2018, I want you all to observe what I was looking at this time last year when I wrote my 2018 Forecast entitled “2018: The Year of Living Dangerously,” in which I gave these closing remarks:

“With the Internet now a massive source of investment knowledge, opinion and deception, you will soon be reading voluminous tomes of ‘Get rich quick!’ e-mails designed to liberate you from your hard-earned savings and critical investment capital. The quote I inserted above is really all one needs to know about asset prices in the years ahead. The Fed will have a new chairman in 2018 and the critical question is ‘Will the punchbowl be drained in 2018?’ For the past nine years, there has been an injection tube feeding the financial punchbowl with all manner of fiscal and monetary stimuli, which has kept all bank collateral (real estate, stocks, bonds) afloat despite massive debt and swamping entitlements obligations. The Fed has stated that this tube is now shut off as the tightening cycle has begun.

“However, if inflation rears its ugly head and it causes civil discontent, the tube will not only be removed, the plug at the bottom of the bowl will be removed and the contents allowed to drain. Food prices, rents and healthcare will be the barometer by which policy pitchforks and torches are trotted out, so keep your seatbelts securely fashioned in the New Year and stay alert. Draining punchbowls do not permit rising stock markets and rampant speculation.

“2018 will be an interesting year.”

Well, 2018 was indeed an extremely interesting year. as that heavily telegraphed but even more heavily ignored punch bowl-draining by Jerome Powell has finally ended the longest bull market in history, with the S&P closing out Christmas Eve down over 20% from its Oct. 3 zenith of 2,929.86. In case you didn’t get the memo, we are now officially in a bear market, and because this bear has been hibernating with not so much as one decent correction since February’s 11.68% warning shot, he was an enraged, starving Papa Bear. What people are ignoring is that in the past eleven weeks he has enjoyed one massive gluttonous feast on the carcasses of shell-shocked “BTFD”-ers. While this bear was bulging-eyed ravenous on Oct. 3 from years of neglect, for the past eight weeks (save last week’s PPT stick save) he devoured everything in his path and is ready for a brief respite from his engorgement, perhaps a nap for a fortnight or so as he prepares for his next Millennial Meal.

The reason for my sudden newfound bullishness lies in these two charts. The first takes us to the end of January of 2018, when RSI has spent literally the entire month in a plus-70 overbought condition before getting tagged in early February. Sentiment was at an absolute extreme and while I was certain of an impending downside reversal, I played it through volatility, and on Jan. 16 began to scale into the UVXY below $10 with a target of $30. Less than ten trading days later, I exited, a tad early, but averaged the mid-$20s. Fast forward to December, and as the second chart clearly shows, conditions are today a virtual carbon-copy opposite of those of eleven months ago. So, if conditions were screaming sell last January, they are most certainly screaming buy, perhaps less loudly today than on Christmas Eve, but still a solid buying opportunity on a retest of the lows around 2,351 on the S&P.

Now, before you take what room you have left on your credit lines and load up with your favorite FANG, understand that this year may see a tax-related downside phenomenon occur, where longer term investors still sitting on terrific gains from the 2009 meltdown are awaiting the end of the fiscal 2018 trading period to book their long-term capital gains, which involves a lower tax rate in the U.S. The ideal entry should be after Dec. 27 for those brave enough to take the plunge.

As an aside, please do not think for a moment that a 150-point (or so) pop in the S&P 500 would qualify as a “bottom” because the singular most violent of all upside moves occur within the context of bear market rallies. Greed-fueled “hopium” is infectious and it forces investors to panic into positions fearing that they are going to miss the bottom. It isn’t until the last bull capitulates and swears to never buy another stock ever that real investable bottoms arrive, and I assure you they do not happen two days or two weeks after a new bear market has just been pronounced. That being said, I should urge caution because in the New Era of Interventions, anything is possible, as we saw on Boxing Day.

Commodities Outlook

Gold: You all recall the late August “Back up the Truck” call on gold (and silver), after I correctly interpreted the Aug. 16 reversal as the low at $1,167, and then added silver a few days later in the $14.50 range. It was a fitful start to what I think is a longer-term move to $1,400 gold and $28.00 silver. But after grinding back and forth with annoying frequency, silver has finally punched out through the $15.00 ceiling and quickly taken the Gold-to-Silver-Ratio (GTSR) from 87 on Monday to 84.22 this morning.

As I have written about for the past thirty years, you simply cannot trust any gold rally where the gold miners (GDX, GDXJ) and silver (SLV) underperform. They should lead the advance and by default, the GTSR should be declining. Until lately, we had not seen silver do anything close to outperforming, but what we have seen is the gold miners (HUI) put on a blistering performance versus both gold and silver, up 11.57% since the end of August.

However, on Boxing Day the silver market closed up 1.86% versus gold’s late-day reversal decline of 0.16% and that is the type of outperformance badly needed to fuel the advance.

This next chart shows how well the gold miners have done when measured against the spot price. The gold miners have been outperforming bullion since mid-September but must continue this outperformance to avoid non-confirmations (to gold’s advance), which always bring out the bears.

Tactics: I have elected to own physical gold plus the GLD April $120 calls at $4.30 for added leverage. I am going with two exploration juniors, Getchell Gold Corp. (GTCH:CSE) and Stakeholder Gold Corp. (SRC:TSX.V), plus one discovery junior, Great Bear Resources Ltd. (GBR:TSX.V; GTBDF:OTC), as my proxies for gold ownership. I particularly like GTCH for reasons mentioned in previous missives and which can be revisited here (report) and I am adding to SRC because of the upcoming drill program in Nevada by Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) on the Snowstorm property situated adjacent to SRC’s Goldstorm property. This could be a serious tailwind for SRC as we move out of winter.

Silver

2019 is going to be the year silver outperforms gold, copper and the mining stocks. It has been under enormous pressure from secondary supply sources, the bulk of which is byproduct deliveries from the big base metal miners. After the 2016 peak above $20, silver went into total “lockdown” with the bullion bank behemoths, acting under the guise of “hedging,” opening massive open interest in CME futures and smothering all forms of momentum, sentiment and upward movement. Only until the Justice Department indicted JP Morgan for manipulating the silver market a few months ago did it at least “appear” as though the shackles had been finally broken. Needless to say, silver is cheap relative to gold and cheap relative to the S&P and cheap relative to credit so one must surmise that it has to be owned—period.

Tactics: While physical silver is my favorite way to play this metal, I have owned the SLV (iShares Silver Trust [ARCA]) April $13 calls from mid-November, when I advised purchases over a three-day period and averaged $1.00 per contract as an average price. As we close out the year, they are currently $1.65 and I have a target price of $10 by expiry on April 18. Also added to the list is Coeur Mining Inc. (CDE:NYSE), originally recommended in December in the $4.25 range; this stock was above $8.00 in July and was north of $16 during the first upleg of this bull market in 2016. I will carry a Q1/2019 target of $8.00 and use a $3.95 stop-loss. Silver is my odds-on favorite of all the metals for 2019.

Uranium

The uranium outlook is based largely on the elimination of excess supply created in the immediate aftermath of the Fukushima incident seven years ago. Seeing as uranium has been in a long and agonizing bear market since then, I decided in 2016 to look into the industry because the one thing that leaps off the page for uranium stocks is that when the price turns up, they absolutely rocket.

In 2016, I was introduced to the founder of U.S.-listed Energy Fuels Inc. (UUUU:US), George Glasier, who was then and is now the founder and CEO of Western Uranium & Vanadium Corp. (WUC:CSE; WSTRF:OTCQX), a Colorado-based uranium/vanadium developer whose primary asset is the Sunday Mine Complex (SMC), located in Nucla, a uranium-friendly area of the state. By assisting them in raising money, I was forced to do a great deal of research on the uranium industry, and because there exists a large vanadium resource at the SMC, it also shifted my focus to the shifting landscape for this little-known “battery” metal, whose primary use lies as a hardening agent in steel production.

With new Chinese regulations calling for increased minimum hardness for steel used in the construction industry, China went from a net vanadium exporter to a net importer in the stroke of a legislative pen. With end users thrown into a frenzy, the vanadium price peaked just under $35/lb in November before correcting to under $20 in December. Nevertheless, with a 75 million pound uranium resource and a 35 million pound vanadium resource, the in situ metal value of the SMC resource is approximately $2.9 billion. When compared to WUC’s $27.2 million market cap, the valuation case for investment is compelling. To own any company at less than 1% of its resource value is usually a wise move and I decided to do exactly that.

Because the Sunday Mine Complex is going to be immediately accretive to any acquirer due to the impact of the upcoming Section 232 investigation petitioned by a couple of domestic producers, acquirers of WUC could pay up to U.S.$100 million for WUC and secure a U.S.-based supply source for a metal increasingly strategic to American security interests. The existing infrastructure at the SMC is all in place, and as the company has announced intentions to reopen the complex in the New Year, the vanadium ore could be available for sale and shipping in early 2019.

I am not expecting WUC will be around to enjoy the upcoming lift in uranium prices because it will be acquired by another entity in desperate need for vanadium or feed for an existing mill currently operating well below capacity. With a 52-week high at $3.32, the current $1.50 level appears to be a reasonably attractive entry point.

Tactics: Buy WUC/WSTRF in the CA$1.50/US$1.20 range with a stop at CA$0.95/US$0.70. Target: US$3.40

The last trading week of the year has been incredibly volatile, with Dec. 26 and 27 recapturing about 150 S&P points. I was going to write that I expected stocks to be higher over the next thirty days but that was at 2,351.10 on the S&P 500 on Christmas Eve, before the Plunge Protection Team (PPT) came riding in on Boxing Day on a huge white stallion.

All around the social media world, there were polls asking whether Trump would fire the Treasury Secretary or the Fed Chairman first. Big N.Y. money then went to work and pounded out the largest one-day advance in history, with the Dow flash-spiking over 1,000 points with the algobots all short and going totally berserk in the final hour. See from the charts shown at the start of this missive that a bounce from ridiculously oversold conditions was overdue, with the RSI for the S&P under 20. CNBC was forced to change its scripted narrative, and after broadcasting Mnuchin’s “PPT call” all weekend, they changed their story to credit “Pension Fund Rebalancing” as the reason for the turnaround. The PPT-fueled updraft saw the RSI nearly double, but still left the S&P down 9.12% for the month and that was after the late-week rebound. It would seem that intervention interference in “free market capitalism” is alive and well.

Tactics: Avoid buying anything until we get the retest of S&P 2,351. If I see 2,550 next week, I will be looking to buy puts. If instead we see a retest of the Christmas Eve lows, I will issue an alert via email or Twitter. (@MiningJunkie )

Base Metals

The base metals (ex-batteries) will be slave to the trade war rhetoric and until clarified, I am avoiding them with a special aversion to copper.

Tactics: The ProShares Ultrashort “basic materials” ETF is the inverse or bearish vehicle for shorting the base metals. While I am not including it in the model portfolio, the SMN April $35 calls at $3.40 are a speculative trading suggestion for the risk-oriented punter.

No matter what happens next, remember that all bear market bottoms will demand a secondary retest, so since I was a fraction too late in making the “go Long for a trade” call on Christmas Eve, I am convinced that we are in the very, very early stages of what history may prove to be the Grandfather of all Bear Markets. That is not to say that stocks can’t trade sideways for a while. But based on the RSI reversal last week (19 to 41 in three days), the time to be net short has past, at least for the next few weeks.

Tonight I am typing in the wee hours of the ‘morn and quite content to tell you all that after forty-one years as a financial person and forty-four years as a stock market investor, I have never been more certain that the world and its entitlement-driven masses are going to be soon screaming for a global currency benchmark. It won’t be the tinfoil hats you see at all the newsletter pumpathons warning you of impending social chaos; I was first exposed to that in 1976 with Harry Schultz. It is going to be a demand by the masses for a return to fiscal sanity by all nations in order to restore the sanctity of the work ethic.

To have non-elected government officials traveling executive class drinking complimentary champagne and arguing with the flight attendants over their “right to a meal of my choice” is worthy of the same fate endured by Marie Antoinette and her elitist intelligentsia. I made money in markets over the years based upon my ability to understand causation and predict reactive outcomes. In the “Knives and Bearskins” era of the 1970s, I would pore over the Standard and Poor’s index cards, and once I had a balance sheet or income statement that looked extraordinary, I would either buy or short the company’s stock and be fully prepared to take my lumps if my assessment of future performance was faulty. Since 2009 (and many would argue long before that), the markets have behaved in a most unusual manner. Stocks no longer respond to news but rather to the tape action; fundamental causation is now dead.

We “old folks” have been left largely behind by a new wave of tech-savvy Millennials that watched their grandparents go virtually bankrupt by plunging their savings into gold and silver in response to the credit-creation, money-printing orgy of the post-2008 meltdown. These youngsters saw through the charade of intervention and government-sponsored fraud post-2008, and instead created their own “safe haven” in the form of cryptocurrencies. While it is true that I called the top in Bitcoin in 2017, I was nowhere near as smart as these kids who embraced its introduction at penny-pricing levels somewhere around 2009 by a Japanese computer whiz called Satoshi Nakamoto. If you had mined 1,000 Bitcoin units as a response to the bankster-driven bailouts of 2009, your cost base would have only been “labor,” and if you were lucky enough to have sold it in 2017 at the December top, your “labor” would have yielded $19,891,000. These kids took the Dot.Com Model of the late ’90s and they perfected it to the point where CNBC was flashing the BTC price minute-by-minute late last year right beside the Dow, S&P, and NASDAQ!

So, with the cryptojunkies now neutralized and the potheads in full retreat, it is my expectation that 2019 will see a return to true, full and plain discovery of price. The terms “price discovery,” “transparency” and “integrity” are three of the most important assumptions upon which investment decisions are made. If there is any hope of avoiding a devastating outcome for portfolios in 2019, it will lie in the restoration of those three attributes for not just the stock market but for all markets where public participation is present. Interventions must be eliminated from all markets where the malodorous misallocation of capital has gone unpunished and where market mayhem is encouraged to run amok. If you believe as I do that the moral hazards created by the Great Financial Bailouts of 2009 (and beyond) have yet to be expunged, then the only place to be is in the monetary metals, where physical possession avoids confiscation and corruption.

Cutting directly to the quick, here is what I own going into 2019 with the idea being the establishment of the model portfolio. In 2019, I am offering an informational service that will allow subscribers (US$799 per year) to access changes to the portfolio as well as short-term trading ideas (such as the VIX, S&P, and junior exploration trades) via my GGM Advisory e-mail alerts. Please forgive the brazen solicitation of your hard-earned after-tax dollars but please remember that the taxman considers investment publications as legitimate business expenses. Also, when you look at the January 2018 VIX trade where I rode 5,000 UVXY from around $10.00 to $25 in eleven trading days, a 100-share position would have alone paid for the service more than twice over.

I wish everyone out there a very Happy New Year and deserved prosperity, health and peace of mind in 2019.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

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Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Getchell Gold Corp., Stakeholder Gold, Great Bear Resources, Western Uranium Corp. and Coeur Mining. My company has a financial relationship with the following companies referred to in this article: Getchell Gold Corp. and Western Uranium. My firm no longer does consulting work for Stakeholder Gold. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Seabridge Gold, Great Bear Resources and Energy Fuels. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Western Uranium and Vanadium. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Getchell Gold Corp., Western Uranium and Stakeholder Gold, companies mentioned in this article.

Charts courtesy of Michael Ballanger.

Michael Ballanger Disclaimer:
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

( Companies Mentioned: CDE:NYSE,
GTCH:CSE,
GBR:TSX.V; GTBDF:OTC,
SRC:TSX.V,
WUC:CSE; WSTRF:OTCQX,
)

What’s Different with Gold This Time Around?

By The Gold Report

Source: Clive Maund for Streetwise Reports   12/31/2018

Technical analyst Clive Maund charts gold and discusses the current state of the market.

The last update was wrong. Gold was expected to drop with the stock market, but instead it rose. Being wrong in this business is not a crime, but it is vital to recognize the error as soon as possible and make a course correction, and if possible discern the reason or reasons for the error. Failure to do this through pride, obstinacy or stupidity can lead to modest losses becoming ruinous. So what happened?

Whilst recognizing that there are big differences between now and 2008, it still looked likely that gold would get dragged down with the stock market when it dropped hard due to a flight into cash driving the dollar up but so far at least, this has not happened. Also it was thought that a Head-and-Shoulders bottom was forming in the dollar, but on further consideration, the pattern looks too tilted to be valid, and it now looks instead like it is starting to break down from a bearish Rising Wedge whose point of origin was back in March-April of this year (see dollar index chart lower down the page).

The biggest difference between now and 2008 is that back then money flooded into the dollar in order to buy Treasuries, but this time round that does not appear to be happening, and it is not hard to see why. The last 10 years since that financial crisis can fairly be likened to a wild party aboard the Titanic, with the global economy stumbling forward in a zombiefied state, powered by QE and ZIRP, which incidentally provided the opportunity for the elites to drain the wealth of the lower and middle classes into their coffers. The result of all this is that U.S. debt has now expanded further to frightening and ruinous levels and the combination of this and the blatant attempt by the U.S. to control the entire world via its dollar reserve currency system through a combination of sanctions, crude military threats and now tariffs is causing attitudes to harden so that other countries are less and less prepared to pony up and support the U.S. by swapping goods and services for piles of intrinsically worthless paper in the form of dollars electronically created and then recycled into Treasuries.

Those who have been paying attention will know that other major powers like China and Russia have been preparing to dump the dollar for a long time now, by buying gold as fast as the West will sell it to them, devising their own payments systems to replace the SWIFT system and making bilateral trade agreements, etc. They also know that unless they have the military power to defend themselves, they would at some point be subject to military aggression by the U.S. if they try to cease using the dollar, hence their major effort to beef up their defensive capabilities.

Thus, what we are seeing is an intensifying buyers strike with respect to Treasuries that will continue to hike interest rates until the economy implodes, a process which has already started. When this happens, and it doesn’t look far off, they will reach for their drug of choice, QE, which will then collapse the dollar leading quickly to hyperinflation. The extent to which the U.S. economy has been looted and plundered by the ruling elites for decades now is not fully understood by the American masses; if they did understand they would be marching on Washington. They have siphoned off countless trillions into the military-industrial complex, waged costly and destructive wars and invasions across the world, poured money into Israel, sickened and weakened the general population with food adulterated with countless additives and genetically modified food, and then made even more money out of them by peddling them overpriced drugs and medical care, destroyed the public transport system and created sprawling suburbs to increase the profits of oil companies as you have to drive two or three times as far to get anywhere as in Europe, killing town center communities and replacing them with shopping malls, bled families white to pay for useless production line college degrees, etc. It’s no wonder there are so many crazies around—and that’s before the economy caves in.

All of this has racked up towering debts of astronomic proportions which they expect foreign jackasses to support by adhering to the dollar reserve currency system and accumulating intrinsically worthless IOUs in the form of Treasuries. The trouble is that foreigners have been starting to wake up to the fact that they have had a sign hanging round their necks for decades saying “Idiot” and one on their backs saying “Kick me,” and have been actively planning to extricate themselves from this situation for some years now, by taking the steps set out in the paragraph above, which include building up gold reserves. So they are steadily withdrawing from supporting the Treasury market, which is going to leave the U.S. with a massive problem as the economy contracts, interest rates rise, the debt towers even higher, and the foreigners who have always been relied upon to support the whole mess fail to step up to the plate. So it’s not hard to see why the dollar is set to plummet before too much longer, even if it gets some temporary relief from the stock market crashing and the chaotic Eurozone imploding.

Thus, the fact that the dollar failed to rally either on the severe drop in the stock market of recent weeks or on the latest rate hike is viewed as an ominous development, both for the dollar itself and for the economy. This is what gold is picking up on and is the reason why it is has started to move ahead over the past couple of weeks.

Now we will quickly review the charts, starting with the 6-month chart for gold, on which we see that gold’s advance over the past couple of weeks, although modest and measured, is certainly impressive given how the stock market has plunged during this period.

Just how impressive this move by gold has been is made plain by the chart for gold for the same time period plotted against the U.S. S&P 500 index. This shows an undeniably impressive performance by gold and reveals its newly acquired intrinsic strength. Notice how this ratio goes up when the stock market drops, and when the stock market rebounded the other day, it dropped. This is exactly what investors in the precious metals sector want to see and is the exact opposite of what happened in 2008.

Note that the latest COTs are not included in this update because they have been delayed by the Christmas holidays, and will become available early this week.

The key factor in all this is the dollar. Gold dropped in 2008 mainly because the dollar rallied sharply, but as we have witnessed in recent weeks this doesn’t seem to be happening this time, for reasons that we have just considered. In the last update we looked at a bullish scenario for the dollar, which now seems to be off the table, and we later looked at a bearish scenario for the dollar on the site, which we will now review on the year-to-date chart for the dollar index below. This chart shows that the dollar is struggling here and on the point of breaking down from a bearish Rising Wedge. If this happens it is going to drop hard, in which case gold and silver are going advance strongly. Gold’s rally of the past couple of weeks seems to be anticipating this and last week silver threw its hat into the ring, breaking out from a Double Bottom base and confirming gold’s recent strength.

While we were wrong in the last update, the good news is that we haven’t actually missed all that much, for as we can see on gold’s latest 10-year chart, this party hasn’t even started yet, and it won’t, officially speaking, until gold breaks above the clear line of heavy resistance at $1,400 that marks the upper boundary of its giant potential multiple Head-and-Shoulders bottom. While that level is still some way above the current price, it could get there PDQ (pretty damn quick) if the dollar breaks down from its Rising Wedge and drops hard soon, as is looking increasingly likely, and follow through with a breakout into a vigorous bull market that will dwarf the one of the 2000s into 2011.

Likewise, the rally so far in the precious metals sector has been minuscule compared to what’s coming if gold breaks out above $1,400, as we can on the 10-year chart for the GDX, where we can see a sort of rough-hewn Head-and-Shoulders bottom. If this is what it turns out to be then we still have great prices for most stocks in the sector, as it is still very close to what should turn out to be the Right Shoulder low of a giant Head-and-Shoulders bottom.

The 6-month chart for GDX is interesting as it shows that a pitched battle between bulls and bears is occurring in the vicinity of its still falling 200-day moving average and at the upper boundary of the channel shown. While the larger dark candles and higher volume suggest that the bears will temporarily win the day and force a reaction, this would accord with gold backing off a bit as the stock market advances a little further before reversing, and any such reaction should present a good buying opportunity. Another significant upleg will soon result in a bullish cross of the moving averages.

The impressive outperformance by precious metals stocks relative to general stocks during the past few weeks is amply illustrated by the 6-month ratio chart for the GDX relative to the S&P 500 index. This ratio eased back in recent days due to the stock market’s snapback rally.

We are going to wind up by looking at two charts that ought to turn even the dourest of skeptics into precious metals sector bulls. First, the chart for the gold to silver ratio, which shows that it is at levels that have only been reached on three occasions in the past 20 years. The first occasion was in 2002, when the great 2000s sector bull market was in its early stages. The second was at the depths of the 2008 crash, which also dragged down the PM sector due to the dollar spiking, which doesn’t look it is going to happen this time round, or if it does it is likely to be much more muted. The third occasion was at the trough of the sector depression late in 2015 and early in 2016, when PM stocks were crazy cheap. The ratio exceeded all this levels in the recent past, which is a reliable sign that a major new bull market is not far away.

Next and last we will take a look at the 20-year chart for the ratio of the HUI goldbugs index to the S&P 500 index. This ratio chart provides a technical explanation for why the sector was so weak over the past 2 and a half years—it wanted to make a nice neat Double Bottom with its lows of late 2015, and now that it has done so and is starting to rise up again, it would appear that it is satisfied. This is a chart that bodes very well indeed for the sector, especially as the rise off the second low of the Double Bottom occurred as the broad stock market was falling heavily.

This update started out by me admitting I was wrong by being too bearish on gold and silver in the last update, but in fairness to myself, I was right about a lot of things. Like the stock market caving in, in particular the FAANG stocks. Thus, we made a lot of money out of Apple Puts, and by buying a range of broad market inverse ETFs, which we sold for a nice profit before and after Christmas.

Let’s end on a positive note by saying that if you thought 2018 was bad, wait until you see what a terrible year 2019 will turn out to be. By “positive note” we mean that although most investors will end up losing a lot of money in 2019, it won’t include us and doesn’t have to include you. On a general level, if you buy the precious metals sector here or soon, and dump most everything else, you should come out on top by the end of the next year, and handsomely so in many cases. Of course, on the site we try to be rather more specific than that and will detail the various large cap, mid cap and small cap mining stocks and also ETFs that can be used to this end.

So Happy New Year to you all, and as for 2019—bring it on!!

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

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Disclosure:
1) Statements and opinions expressed are the opinions of Clive Maund and not of Streetwise Reports or its officers. Clive Maund is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Clive Maund was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Charts provided by the author.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

Rating Downgraded on Energy Company on Oil & Gas Price Weakening

The Energy Report

Source: Streetwise Reports   12/27/2018

A bearish outlook for both oil and natural gas, as well as a hedge monetization, are among the reasons for the Raymond James rating change.

In a Dec. 19 research note, analyst John Freeman reported that Raymond James downgraded Antero Resources Corp. (AR:NYSE) to an Underperform rating from an Outperform, generally due to a bleaker outlook for oil and natural gas prices.

Specifically, Raymond James in the short term remains bearish on natural gas and lowered its price forecast for oil, Freeman wrote. Also, the financial services firm noted the current prices Antero is getting for its natural gas “are not as attractive.”

Another factor in the downgrading of Antero is that it, future commodity prices aside, may not meet its projected $1.6 billion of free cash flow through 2022 because doing so hinges on the company achieving certain efficiencies and successfully marketing its excess capacity in 2020. “These issues would obviously intensify with any decrease in activity,” Freeman pointed out.

In other news, the analyst relayed, Antero announced on Dec. 18 “a hedge monetization consisting of $235 million from the unwinding of 68% of April through December natural gas swap volumes next year (replaced with collars) and $122 million from the resetting of 2020 swap contacts from $3.25 to $3, with the $357 million of total proceeds being used for debt reduction.” However, the effect of this transaction is that cash gets pulled from future periods to the present. To reflect the financial move, Raymond James updated its model on the energy company.

Finally, Freeman noted that Antero released production guidance for Q4/18, which is about 400 million cubic feet of unhedged gas. Further, the company projects that with the launch of the Rover pipeline, about 30% of that volume will be sold to premium markets in the U.S. Midwest. Consequently, Raymond James revised its Q4/18 forecast on Antero as well, bumping up Q4/18 production and the premium to Henry Hub on natural gas.

Antero’s stock is currently trading at around $9.47 per share.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Raymond James, Antero Resources Corp., December 19, 2018

ANALYST INFORMATION

Analyst Compensation: Equity research analysts and associates at Raymond James are compensated on a salary and bonus system. Several factors enter into the compensation determination for an analyst, including i) research quality and overall productivity, including success in rating stocks on an absolute basis and relative to the local exchange composite Index and/or a sector index, ii) recognition from institutional investors, iii) support effectiveness to the institutional and retail sales forces and traders, iv) commissions generated in stocks under coverage that are attributable to the analyst’s efforts, v) net revenues of the overall Equity Capital Markets Group, and vi) compensation levels for analysts at competing investment dealers.

The analyst John Freeman, primarily responsible for the preparation of this research report, attests to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers and (2) that no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views in this research report. In addition, said analyst(s) has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Certain affiliates of the RJ Group expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next three months.

Raymond James & Associates, Inc. makes a market in the shares of Antero Resources Corporation.

( Companies Mentioned: AR:NYSE,
)

Uranium Miner Reports 234% Increase in Resource Estimate

The Energy Report

Source: Streetwise Reports   12/27/2018

This company, with an ISR project located in South Dakota, has filed a technical report to support the revised estimate.

In a Dec. 21 news release, Azarga Uranium Corp. (AZZ:TSX; AZZUF:OTCQB) announced it has filed a technical report to support an NI-43-101-compliant resource estimate increase at its Dewey Burdock in-situ recovery (ISR) uranium project.

The technical report for the increase highlighted the following:

  • The Measured ISR resource increased 234%, to 13.78 million pounds U3O8 (13.78 Mlb) from 4.12 Mlb U3O8
  • Measured and Indicated ISR resources increased 97% to 16.94 Mlb U3O8 from 8.58 Mlb U3O8

Azarga also reported that the updated estimate reflects a “larger and more contiguous resource likely to achieve improved project economics compared to existing preliminary economic assessment.”

In addition, the company noted that “several miles of lightly explored, mineralized trends remain to be further delineated” at the South Dakota-based project.

The company’s preliminary economic assessment will be revised as well, with release expected in Q2/19, according to the announcement.

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Disclosure:
1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Azarga. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Azarga Uranium, a company mentioned in this article.

( Companies Mentioned: AZZ:TSX; AZZUF:OTCQB,
)

Oil Driller Hits Milestone in the Permian Basin

The Energy Report

Source: Streetwise Reports   12/27/2018

Oil and gas drilling company hits a milestone at its 133,000 acre position in the Permian Basin in Texas. On the heels of a $6 million financing deal, the company has been releasing drill results and continues to drill.

Torchlight Energy Resources Inc. (TRCH:NASDAQ) completed the drilling phase of the A39 #1 well in addition to the A11 #2 well, both located in the Orogrande Basin in Hudspeth County, Texas. Torchlight owns 72.5% working interest in full of the 133,000 net acre unit.

Earlier this month, the company announced its that in conjunction with drill partner Wolfbone Properties and operator Maverick Operating, Torchlight has drilled A39 #1 to a vertical depth of 4,035 feet, and casing was set.

The company noted that “electric logs show excellent hydrocarbon potential in multiple intervals which is representative of economical conventional and unconventional productive formations.”

This was preceded by an announcement in late November that well A11 #2 was drilled to a depth of 4,009 feet and casing was set.

Both wells will be “perforated and stimulated to commence testing of each well. Fracture stimulation will be employed at a later time as needed after results are measured,” the company noted.

“We are making tremendous headway in our core project, the Orogrande,” stated John Brda, Torchlight’s CEO. “Each well we drill gives us further scientific conformation with the last two wells demonstrating our pioneering effort to prove up a new pay zones within a newly discovered hydrocarbon system.”

“We have proof positive of the existence of additional potential pay zones including an exciting San Andres look alike. As each well is drilled and completed it is important to remember that our results are proving viability for a much larger developmental effort and will accelerate our ongoing discussions with larger independents who have expressed interest in the project as a partner or acquirer,” Brda added.

The next location to be drilled will be the University maverick A24 #1, where Torchlight plans to commence drilling after the holidays. Torchlight will be “testing a structural high that it expects will prove eight potential zones below the unconventional Penn formation that was previously discovered in the A25 #1 horizontal well.”

The Orogrande Basin isn’t Torchlight Energy’s only focus.

$6 Million Financing for All Three Projects

Torchlight Energy currently has three ongoing projects: Orogrande Basin, Delaware Basin and Midland Basin. The company announced its $6 million financing in late October for all three projects.

Comparison chart
Source: Torchlight Energy

The funds were used for the expansive drilling at Orogrande Basin. Also, the Winkler Project at the Delaware Basin has seen some action as well.

Located in Winkler County, Texas, the project includes 640 gross (67.2 net) acres. (10.72% of the property will not be operated on.) Torchlight Energy has a net revenue (NRI) of 75%.

Torchlight’s operating partner, MECO IV, recently stimulated the well using 9.2 million pounds of proppant in 358,000 barrels of fluid over 30 stages. The UL 21 War-Wink 47 2H is currently producing 260 MCFPD, and all streams are hooked up to sales. “The well is trending up nicely on a daily basis,” according to management.

Lastly, the Midland Basin project—the Hazel Project—is composed of the Wolfcamp A & B area, covering 12,000 gross acres (9,600 net acres). All of the land will be operated (100%). The company has a 75% NRI.

There are a total of 70 million shares outstanding, with about 27% being held closely. Torchlight shares currently sit at $0.56.

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Disclosure:
1) Nikia Wade compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Torchlight Energy Resources. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Torchlight Energy Resources. Please click herehere for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Torchlight Energy Resources, a company mentioned in this article.

( Companies Mentioned: TRCH:NASDAQ,
)

Bulk Sampling from Quebec Project Shows High Grades

By The Gold Report

Source: Streetwise Reports   12/26/2018

An iA Securities report notes the early results from this Canadian mine indicate gold grades could increase.

In a Dec. 19 research note, analyst George Topping reported that preliminary bulk sampling results from Osisko Mining Inc. (OSK:TSX) Windfall project demonstrate a “39% positive reconciliation in grade.” Findings are from 2,078 tons of ore obtained from block 114 in zone 27 at the Quebec property.

Topping highlighted results revealing an estimated average head grade of 9.7 grams per ton gold (9.7 g/t Au), 39% higher than the 7 g/t grade predicted by the resource block model for that specific area. “This is interesting,” Topping commented, “as the test area was tightly drilled at 12.5-meter centers and suggests the high variability in grades combined with capping could be materially underestimating the true grade.”

Topping pointed out that as drilling tightened at the Lynx property, adjacent to Windfall, the grade increased. Most recently, as of the November 2018 resource estimate, it stands at 8.1 g/t Au. Lynx is now in the feasibility study stage.

Osisko will report results from the remainder of the first batch of bulk samples from Windfall, 2,922 tons’ worth, in 2019. It plans to extract two additional, 5,000-ton bulk samples at this project as well.

Osisko Mining, in general, Topping highlighted, is progressing toward production in 2020-2021. “New discoveries at Deep Underdog (Triple 8) and Deep Lynx plus the recent funding by Kirkland Lake Gold Ltd. have added excitement back into the stock,” he wrote. IA Securities maintains its Buy recommendation and CA$4.50 per share target price on Osisko Mining, whose current share price is about CA$2.72.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from iA Securities, Osisko Mining Inc., Research Update, December 19, 2018

Conflicts of Interest: The research analyst and or associates who prepared this report are compensated based upon (among other factors) the overall profitability of iA Securities, which may include the profitability of investment banking and related services. In the normal course of its business, iA Securities may provide financial advisory services for the issuers mentioned in this report. iA Securities may buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.

Analyst’s Certification: Each iA Securities research analyst whose name appears on the front page of this research report hereby certifies that (i) the recommendations and opinions expressed in the research report accurately reflect the research analyst’s personal views about the issuer and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analyst Trading: iA Securities permits analysts to own and trade in the securities and or the derivatives of the issuer under their research coverage, subject to the following restrictions. No trades can be executed in anticipation of coverage for a period of 30 days prior to the issuance of the report and 5 days after the dissemination of the report to our clients. For a change in recommendation, no trading is allowed for a period of 24 hours after the dissemination of such information to our clients. A transaction against an analyst’s recommendation can only be executed for a reason unrelated to the outlook of the stock for the issuer and with the prior approval of the Director of Research and the Chief Compliance Officer.

In the past 12 months, Industrial Alliance Securities Inc. has managed or co-managed a public offering of securities for the issuer.

The analyst has visited the issuer’s operations. No payment or reimbursement was received from the issuer for the associated travel costs.

In the past 12 months, neither iA Securities, its officers or directors, nor any analyst involved in the preparation of this report have provided services to the issuer for remuneration other than normal course investment advisory or trade execution services.

( Companies Mentioned: OSK:TSX,
)

Metals and Mining Company Could Return Billions in Sale Proceeds to Shareholders

By The Gold Report

Source: Streetwise Reports   12/29/2018

A BMO Capital Markets report discussed the ways this global firm might use the new funds.

In a Dec. 21 research note, BMO Capital Markets analyst Edward Sterck reported that Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK) closed on the sale of its 40% interest in Grasberg for $3.5 billion through a series of transactions with the Indonesian government and Freeport McMoRan, and that the sale could result in increased shareholder returns.

Were Rio Tinto to return all of the proceeds to shareholders, via a special dividend or another share buyback program, Sterck noted, it would increase the 2019 return to about 11.3% from 7%, as estimated by BMO. This compares to the 12% expected at the end of 2018. The analyst pointed out that the company already has significant share buyback underway, which would account for about 30% or US$1.8 billion of that projected 7% return in 2019.

Rio Tinto, however, may opt to use some or all of the new funds for another purpose, such as building up its treasury for acquisitions or capital projects, Sterck highlighted. For one, it may “look to add copper assets through acquisitions.”

The company will announce its intent for the US$3.5 billion when it reports its full year 2018 financial and operating results on Feb. 27, 2019.

BMO has an Outperform rating and a £46 per share target price on Rio Tinto, whose stock is currently trading at around £37.62 per share.

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Disclosure:

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports (including members of their household) own securities of Rio Tinto, a company mentioned in this article.

Disclosures from BMO Capital Markets, Rio Tinto, December 21, 2018

IMPORTANT DISCLOSURES

Analyst’s Certification
We, David Gagliano and Edward Sterck, hereby certify that the views expressed in this report accurately reflect our personal views about the subject securities or issuers. We also certify that no part of our compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Company Specific Disclosures
Disclosure 5: BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within
the past 12 months from Rio Tinto.
Disclosure 6C: Rio Tinto is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an
affiliate within the past 12 months: C) Non-Securities Related Services.

Disclosure 19: BMO Nesbitt Burns Inc. (“BMO NBI”) is acting as financial advisor to China National Uranium Corporation Limited. in connection
with its proposed acquisition of 68.62 per cent stake in Rossing Uranium Limited from Rio Tinto. BMO NBI will be paid a fee contingent on the
successful completion of the transaction. BMO NBI follows information control procedures which prevent its research analysts who are issuing
research from having access to non-public information received by BMO NBI’s investment banking personnel in connection with the transaction.
Accordingly, it is possible that individual employees at BMO NBI may have material non-public information or opinions which are not included
in, and may not be consistent with, the information and advice in this research report.

For Important Disclosures on the stocks discussed in this report, please click here.

( Companies Mentioned: RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK,
)

GOLD Remains On The Offensive With Eyes On 1,290.00 Resistance Zone

By FXTechStrategy.com

GOLD remains on the offensive with eyes on 1,290 resistance zone. On the downside, support comes in at the 1,270.00 level where a break will turn attention to the 1,260.00 level. Further down, a cut through here will open the door for a move lower towards the 1,250.00 level. Below here if seen could trigger further downside pressure targeting the 1,240.00 level. Conversely, resistance resides at the 1,299.00 level where a break will aim at the 1,310.00 level. A turn above there will expose the 1,320.00 level. Further out, resistance stands at the 1,330.00 level. Its daily RSI is bullish and pointing higher suggesting more strength. All in all, GOLD looks to move further higher.

This is an excerpt from our 10-currency daily analysis and trade alerts with buy/sell entries, stoplosses and profit targets…Click Here To Get Started

 

Silver Starts A Breakout Move Higher

By TheTechnicalTraders.com

Watch Silver, folks. This quiet shiny metal is starting a move that could be very foretelling of global market concerns and risks. Early on December 26, 2018, Silver broke through recent resistance, to the upside, with a relatively large 2.8%+ upside move. Why is this so important to traders? Because Silver is the “sleeper metal” that is typically the last to react to global economic concerns. Once Silver starts to move to the upside with a renewed bullish trend, we believe this move would indicate that bigger players are starting to accumulate Silver as a safe haven for future economic concerns/crisis events.

This Daily chart of Silver shows the December 26 upside breakout move. We can clearly see the breakout above $15.00 and the historical resistance just below $15.00. This move is extremely important in the context of the total risk play that has recently played out through the past two months. Take a look as how quiet the Silver market has been over the past few months. Take a look at how Silver reacted only moderately to the recent market selloff and Fed statements. There was no real “fear” exhibited in the metals markets or in Silver over the past 60+ days. Yet, today, there is some real fear that is playing out in the price of Silver.

This next Weekly Silver chart helps us to understand the total scope of this move and what we could expect to see as an immediate upside price target. Our Adaptive Fibonacci Price modeling system is suggesting that $16.00 is an immediate upside price target and is showing us the current trend is bullish and that price volatility is increasing. Overall, we could see a move well above $17.00 on an extended run in the metals.

Watch how this “sleeper metal” plays out over the next few weeks and months. This upside breakout is very important to investors for the simple reason that it indicates a renewed level of “fear” is entering the markets and we could be starting a very big upside move in the metals markets again. The last time Silver entered a massive bullish phase it shot up over 400%. If a similar move happens again in the near future, Silver could reach a price level near $60~65 per ounce.

Want to know how to position your investments to take advantage of these types of moves and learn how to capture greater opportunities in the markets? 2019 is setting up to be an incredible year for traders with the skills and insight to find and execute these types of trades. We have already been positioning our members for this move and we believe 2019 will provide incredible opportunities for all skilled traders. Take a minute to visit TheTechnicalTraders.com to learn how we can help you in 2019 and join our other members in finding greater success.