Category Archives: Latest Commentaries

Is There Enough Lithium and Graphite to Meet the Increasing Global Demand from Manufacturers?

Is There Enough Lithium and Graphite to Meet the Increasing Global Demand from Manufacturers?
I have been following the blossoming of the lithium boom over the past few years and my readers have seen the huge amount of growth over the past two years. My readers have followed the stories of top performers such as Western Lithium (WLC.TO or WLCDF) and Pure Energy Minerals (PE.V or HMGLF). Those two stocks were champions during a brutal bear market in junior miners for good reason. Investors are growing more convinced about the growth of electric vehicles especially with the popularity of the Tesla (TSLA) brand and enthusiastic leader Elon Musk whose goal is to put 500k electric vehicles on the road by the beginning of the next decade. Problem for Musk is there isn't enough lithium and graphite right now to fill that demand. So Tesla has been signing deals with lithium junior miners such as Pure Energy (PE.V or HMGLF) and Bacanora to possibly secure supply and pricing. Yet graphite has been completely ignored so far. This should change soon as lithium ion batteries require much more graphite than lithium to operate.
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Did Precious Metals and Junior Gold Miners Just Bottom?

Did Precious Metals and Junior Gold Miners Just Bottom?
Huge amounts of institutional capital may be flowing into the major gold miners such as Barrick, Newmont, Kinross and Agnico Eagle which have all seen big moves off of December lows. There is an increasing probability that we saw the bottom at the end of 2015. Major investments have taken place recently in the junior sector specifically in uranium (URA), Gold (GLD) and Lithium (LIT). Fission (FCUUF), Gold Standard Ventures (GSV), Orocobre (ORL) and Oban (OBM) have all recently raised large amounts of capital. This could be just the beginning as other high quality situations may find the critical cash needed to advance mineral projects.
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Global Economy Making Clean Energy Transition From Fossil Fuels to Renewables

Global Economy Making Clean Energy Transition From Fossil Fuels to Renewables
According to recent Washington Post article, 2015 was a breakout year for clean energy investments with over $325 billion invested into the sector. What is shocking about this figure is that it happened during a year when oil crashed from above $100 per barrel to 10 year lows. Why are lithium stocks soaring and renewable energy demand increasing when oil is so cheap?
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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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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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Fed Refuses To Raise Rates on Slowing Economy Boosting Gold and Junior Miners

Fed Refuses To Raise Rates on Slowing Economy Boosting Gold and Junior Miners
For smart investors watching the gold-Dow ratio rather than mainstream media headlines, this is an exciting time to be a precious metals investor. The world seems to be conspiring to push the price of gold higher, with continued zero interest rates, Chinese stock market volatility and more unrest in the Middle East. In this interview with The Gold Report, Gold Stock Trades Editor Jeb Handwerger lays out his short list of junior mining companies that have been actively adding value, and that will be in demand when all eyes are on the sector.
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