Yearly Archives: 2015

Lithium Continued To Excite Investors in 2015, Will Stock Market Crash Bring Back Interest to Junior Mining?

Lithium Continued To Excite Investors in 2015, Will Stock Market Crash Bring Back Interest to Junior Mining?
Over the past year I have studied the content of my blog and would like to report which are my top articles and videos in terms of unique page views in 2015. Clearly, my top content in terms of interest from readers in 2015 was the lithium sector where we are continuing to see demand outstrip supply. It was one of the only commodities rising in price while the sector was wiped out by a strong dollar. The August correction in the stock market brought back retail interest over the summer. I expect as tax loss selling ends today to begin to see a rally in the new year. This rally is called the January Effect where beaten down sectors bounce as fund managers look to re-position in the new year.
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Is Junior Gold Miner Relative Strength Forecasting Powerful Relief Rally in January?

Is Junior Gold Miner Relative Strength Forecasting Powerful Relief Rally in January?
Looking at the chart above notice that even though gold (GLD) has hit new lows, the junior gold miners (GDXJ) are finding support and the Momentum indicators are positive. That may indicate a rebound or at least a relief rally may soon be underway in the junior miners possible following tax loss selling. December tax loss selling is always challenging in the junior markets during good times, how much more so in these historically tough times. The good news is that January is usually rally time for the junior miners as investors reposition for 2016 in beaten down names. I expect that the first three months of 2016 could be exciting for some of the highest quality names with top assets, treasury and management.
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US Dollar Double Top? Could US See Recession in 2016?

US Dollar Double Top? Could US See Recession in 2016?
I predicted back in 2011 that Europe would follow the US by printing and that further bailouts of weak Euro nations would cause a decline in the Euro. As I expected back in 2011 capital flowed to the oversold US dollar. Commodities and precious metals did not rally with the dollar as a safe haven and caused a major commodity de-leveraging weakening major mining financial institutions such as US Global Investors, Sprott, Pinetree, Dundee and many others. In 2011, many funds began to raise cash and reduced their exposure to mining related equities. This has been going on now for more than four years, turning into one of the worst bear mining markets in history.
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Motorola’s Acquisition by Google Left a $7.2 Billion Void in Niche Market

Motorola’s Acquisition by Google Left a $7.2 Billion Void in Niche Market
There is a company gaining market share due to the recent acquisition of Motorola by Google. In 2011, Google bought Motorola for its Android Operating System addressed for consumers in the use of smartphone and then sold off the rest of Motorola to other outfits. This left a huge void in Motorola’s Business Unit which sold “connected-vehicle” devices to fleets across the transportation sector. Its a big $7 billion market that this small company is looking to build its market share.
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Countdown on Barrick Decision with NuLegacy Gold (NUG.V)

Countdown on Barrick Decision with NuLegacy Gold (NUG.V)
Gold is testing July support and multi-year lows, however there are unique junior gold mining equities which continue to stand out. NuLegacy Gold (NUG.V or NULGF) has been hitting some impressive high grade gold on the Cortez Trend in Nevada this past year. Nevada is one of the most profitable and lowest cost jurisdictions especially Barrick's (ABX) mines on the Cortez Trend which I was blessed to visit last year. With the depressed price of gold there are very few economic places to mine gold like Nevada. The Cortez Trend is where Barrick produces its most profitable gold and its also where they are making their biggest discovery at Goldrush, which is adjacent to NuLegacy's Iceberg Deposit. In addition to massive discovery at Goldrush, one of their little JV partners NuLegacy Gold is finding high grade gold right next to Goldrush. This could be Barrick's next big gold discovery.
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Uranium Resources (URRE) Acquires One of the Best Uranium Projects in The World

Uranium Resources (URRE) Acquires One of the Best Uranium Projects in The World
All we need for a uranium bottom is follow through from major private equity funds who may be waiting in the wings ready to pounce for the following reasons. Japan has restarted two nuclear reactors. This is a major turnaround from their prior path of abandoning nuclear following once in a millennium accident at Fukushima in 2011. In addition to the 180 degree turn in Japan, China continues its record pace of building and starting nuclear power plants to move away from coal which is suffocating some of their major cities. Even the United States has started operating its first new nuclear reactor in close to three decades. All this positive news indicate demand is increasing. Because of decade low uranium prices, supply has dwindled as it is unprofitable to mine unless you are lowest cost producer. Rising demand with declining mine supply equals the potential for a price spike higher.
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Junior Gold Miners (GDXJ) on Verge of Major Breakout From Base at $23

Junior Gold Miners (GDXJ) on Verge of Major Breakout From Base at $23
Junior gold miners may be on the verge of a major breakout past three month highs after The Federal Reserve continues to push back interest rate increases. There is a stealth rally underway for junior miners as gold tests resistance after bouncing off its lows in late July. Investors appear to be rotating from the Dow into precious metals as investors may be anticipating even greater easing efforts globally due to China's recent weakness and Yuan devaluation. This could continue to push precious metals, the large miners such as Barrick Gold (ABX) and mid-tiers such as Alamos Gold (AGI) higher. The fear of rate increases that pushed precious metals down is decreasing. The recent rally in precious metals and junior miners may be just beginning as I expect to see increased mergers and acquisitions off of these depressed low prices.
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Copper and Base Metals May Be on Verge Of Major Breakout After Glencore Cuts Production

Copper and Base Metals May Be on Verge Of Major Breakout After Glencore Cuts Production
For the past two weeks I have written to my premium subscribers to look at copper and the industrial metals as I saw deep pocketed private equity funds and billionaires such as Carl Icahn and KKR taking big bets on beaten down Dr. Copper hitting five year lows. I knew that a bottom could be forming and that we could be near the final turn. It was my first copper bet in many years. Now it appears that the call of a bottom in copper and industrial metals could be confirmed by the recent news that Glencore is cutting global production of zinc. Copper and nickel could be next. The Commodity Giants such as Glencore are in great financial duress right now shutting down mines left and right that are losing money at these low commodity prices. They recently shut down two African Mines.
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