Category Archives: Latest Commentaries

Strong Accumulation May Follow Selling Capitulation in Junior Gold Miners

Strong Accumulation May Follow Selling Capitulation in Junior Gold Miners
Look for huge volume and accumulation in gold and silver and the junior miners over the next few weeks and in some high quality junior mining stocks. Selling capitulation followed by strong accumulation could be the indicator that the smart money expects gold and silver to bottom. The question for many is when this will occur. Do not forget we are seeing increased interest into the junior miners with oversubscribed financings. What is driving this investor demand for junior gold miners when gold and silver are testing and hitting new lows?
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Uranium Price Creeping Higher on Geopolitical Instability

Uranium Price Creeping Higher on Geopolitical Instability
A few months ago, I believed uranium would bounce off lows and make a powerful move higher. The spot uranium price is beginning a rebound rallying more than $3 per lb over the past few weeks. End users of uranium are concerned about geopolitical stability and are actively looking for safe and long term secure supplies of U3O8. Any hiccup in production could significantly impact global supply. Although there is abundant amounts of uranium in North America and Australia most of the production comes from unstable areas such as Kazakhstan, Niger and Russia. The recent sanctions with Russia could have a major impact on pricing. Russia through Rosatom operates Kazakhstan production which is the largest supplier of uranium to the world. Europe and the US are some of the largest consumers of nuclear and have relied on cheap Russian uranium for decades. What happens when the cheap uranium runs out especially at a time when demand is growing? A price spike with triples and quadruples in the junior miners.
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Uptrend in Junior Gold Miners Forecasting Bottom In Precious Metals

Uptrend in Junior Gold Miners Forecasting Bottom In Precious Metals
The Post Labor Day rally in precious metals I expected has turned into the Post Labor Day Selloff for precious metals and many mining stocks.  Many investors came back from Labor Day and sold their precious metals in favor of the U.S. dollar.  This could be the worst possible trade right now.  This could be the shakeout before the breakout in the precious metals.  Generally this is a seasonally strong time for gold and silver.  We may bounce off new lows below $1200. Despite gold testing new lows, the junior miners are still in an uptrend since December of 2013.  Is the outperformance of the junior miners indicating that gold may bottom here around $1200?
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Did Tesla Choose Nevada To Be Close To This Junior Lithium Miner Up 450% in Past Year?

Did Tesla Choose Nevada To Be Close To This Junior Lithium Miner Up 450% in Past Year?
For years I have been bullish on the growth of the lithium-ion battery in its use in smartphones, tablets, laptops and electric vehicles. It is becoming the battery of choice as the consumer looks to power up on the go. Weeks ago I wrote about a game changing M&A event that could spark a huge rally in the lithium and graphite sector. When Albermarle (ALB) paid $6.2 billion to buy Rockwood (ROC), the world's largest publicly traded lithium producer, I knew it was only a matter of time before our carefully selected junior miners get noticed by the smart money and large institutional funds. Now our feature graphite miner was just acquired. Is it just a matter of time before our featured lithium miner is taken over?
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Junior Graphite Miner in Mexico Bought Out by Flinders

For many weeks I have been alerting my readers to increased acquisitions in the graphite sector as Tesla announced big plans in the near term to build a gigafactory in North America to increase production of lithium ion batteries for electric vehicles. The announcement of a Tesla Lithium Ion Gigafactory in North America has jumpstarted the junior mining graphite sector as I predicted in this article more than two weeks ago. In the article, I stated that graphite is a large component of lithium ion batteries. The graphite miners are still undervalued and the M&A boom may be just beginning as there could be a major increase in demand for these batteries critical for cars, smartphones, tablets and laptops. The public is not yet aware about the exponential rise in demand for the lithium-ion battery sector which could more than double over the next ten years. A few weeks ago, I highlighted an unknown junior graphite miner, who already sold amorphous graphite in Mexico but took a huge leap forward when it acquired a Graphite Mine and Mill in Mexico. It was a past producer but shut down in 2002 when the Chinese knocked down the price of graphite. Now I see across the wires that it was bought out...
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Are The Junior Miners Going To Benefit From Severe Large Cap Correction?

Are The Junior Miners Going To Benefit From Severe Large Cap Correction?
One sign is a huge uptick in volume in the Market Vectors Junior Gold Miners ETF. The volume increase in the first seven months of 2014 has been exceptional, whereas volume is decreasing in a rising market in the SPDR S&P 500 ETF (SPY:NYSE), an ETF tracking the S&P 500. The rising volume in the juniors may indicate accumulation, whereas decreasing volume in a rising market may indicate that the rally in the S&P 500 is overbought and running out of steam. The equity market has not had a significant correction in more than three years and it's dangerous territory for a correction.
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Why This Junior Gold Miner in Nevada Soared 200% in 2014

Why This Junior Gold Miner in Nevada Soared 200% in 2014
At the end of 2013, I predicted the junior gold (GDXJ) and silver miners (SIL) would outperform the S&P500 in 2014. I was right so far in 2014. THe GDXJ is up over 36% on the year while the S&P500 is up under 5%. However, one of the junior gold miners that I predicted would be a major winner back in December of 2013 has far outpaced the mining and overall market indices by a wide margin. The small junior miner is up over 200% in 2014. Find out which one and why.
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Why Nickel is The Leading Base Metal in Performance in 2014

Why Nickel is The Leading Base Metal in Performance in 2014
Remember the price spike in palladium (PALL) in 1999? Or the run up in uranium prices (URA) in 2007? Even more recently the move in silver (SLV) and gold (GLD) in 2011? Commodities and the mining stocks have a tendency to breakout into price spikes and frenzies. In late 2013 I told you that nickel was about to rebound.I am excited by the fantastic move this year in nickel from the low $6 range to above $9 making over a 50% move in 2014. It has pulled back for the past three months and may be on the verge of making a second leg higher.
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Could This Be The Next Major Gold Producer In Colombia?

Could This Be The Next Major Gold Producer In Colombia?
Red Eagle is only weeks away from publishing a Bankable Feasibility Study on a project which I believe will come into production in the next 18 months. The 320 sq. km Santa Rosa Gold Project in Antioquia has already produced a Preliminary Economic Assessment (PEA) that shows the potential for production of around 50k ounces per year with low cash costs around $620 an ounce. This means that possibly within 18 months Red Eagle has the ability to cash flow over $60 million of profit if gold stays around $1300 an ounce. Red Eagle flies above the others as the project has one of the best economic profiles in the junior mining business.
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Could Wellgreen Platinum be the Next Stillwater Mining?

Could Wellgreen Platinum be the Next Stillwater Mining?
Since the second half of 2012, I have been bullish on platinum and palladium (PGM). I have focussed on a North American producer Stillwater Mining (SWC) and a junior developer Wellgreen Platinum (WGPLF) in the Yukon. Labor strikes in South Africa combined with economic sanctions on Russia could spark a renewed interest in North American PGM production. Remember South Africa, Russia and Zimbabwe are the world's largest supplier of this valuable metal and all these jurisdictions are extremely volatile right now. South Africa is the leading platinum producer and Russia is the world’s leading palladium exporter. Both these metals are outperforming in 2014 and the rally could just be beginning because demand for these metals are rising annually. PGM's are both a monetary metal as well as an industrial metal used in catalytic converters to reduce noxious emissions. Palladium is outperforming platinum and gold breaking through the $850 mark and platinum is also breaing. Watch nickel which exploded from the $6 area to over $9.50. The three reasons nickel is soaring in price is because Indonesia the largest nickel producer announced an export ban, Russia a large nickel producer has economic sanctions against it and existing producers such as Vale are announcing production problems. We have already seen nice gains in Royal Nickel (RNX) and Stillwater Mining (SWC) which have already made doubles and triples. The breakout move in nickel, palladium and platinum is just beginning and incredibly Wellgreen Platinum (WGPLF), which is highly leveraged to all three of these metals is sitting with a market cap below $50 million. Wellgreen has not yet participated with the rally in nickel and palladium, but that could change soon as they just announced a new resource estimate which shows the massive size of this deposit.
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